Employee-shareholders^* value their company on two levels. First, they co-own it, only a modest part of it obviously, but still a significant one. They are also major actors in the company, and as such major creators of its wealth. From this dual point of view, they require nothing less than a long-term development policy. This is even more true in our industry where the result of a project usually comes about 8 or 10 years after the first decision. In such a context, the short-term fluctuations of the economy such as oil prices, however brutal, should not have an immediate impact on major long-term projects. The company’s survival is more important than immediate return on investment. To stick to the highest ROCE means that the first place in strategic projects becomes available to wiser challengers.

However, what we see is the objective of a regular 12 or 13% return all along the oil process, whatever the economic situation. Such a goal can lead to a short-term strategy and downsizing, while the wealth of the Group used to be built on bold industrial challenges.

This is especially harmful to the motivation of the company’s living forces. How can we imagine that they will be motivated by a string of redundancy plans and reengineering programmes, especially with an Anglo-Saxon flavor somewhat tasteless to the Latins we are? How many experienced managers did we lose through this Malthusian approach whose know-how and skills would have avoided severe pitfalls and therefore saved a lot of money? It is well known that the exploration processes are cyclical. And it stands to reason that, after the deep offshore we will be back onshore, for example to prospect complex basins that will become available through new methods and technical advances. Experience then will be highly valuable. The same arguments stand for the refining or chemical industries.

With the passive and dull climate prevailing in the technical entities, the purchase of Petrofina by TOTAL was definitely not appreciated. The financial arguments that have been put forward do not show the long-term strategy expected by the employees.

What is to be expected from a company where enthusiasm is lost? An enthusiasm that played such a great part in building up the Group through many difficult periods, and that eventually always succeeded in new developments.

Under special circumstances and in order to allow the company to recover**, some unpleasant measures might become necessary but the decisions should be made with the utmost equanimity and care to people, as we would otherwise have to face a real rift within the remaining employees.

Translator’s notes:

^* An employee-shareholder is an employee of a company who owns a number of actions of this company

** Remember that this text was written before the strike began, and it does not mean in any way that Elf is presently faced with such difficulties