In March 2008 Around 250 trade union representatives at France Telecom demonstrated outside the company’s headquarters yesterday. The workers were protesting against job cuts and the closure of sites. For a French based company, this is business as usual. Previously, in 2006 the company launched a restructuring plan that aims to achieve 22,000 voluntary redundancies over three years. Overall, FT has maintained a relatively cordial relationship with its workers and their representatives and has managed to demonstrate a modicum of corporate social responsibility.
Business Profile
France Telecom provides consumer and business fixed-line and wireless voice and data services. Its Orange mobile phone unit has millions of subscribers worldwide in addition to millions of fixed-line customers. The company has acquired the 46% of data network operator Orange Business Services (formerly Equant) it did not yet own and has been expanding its offerings in IP protocol, broadband, and audio-visual content. The French government owns about 32%.
In a March 2008 press release France Telecom announced the acquisition of Cityvox, a leading Internet media group. This acquisition is in line with Orange’s strategy to develop its Internet services.
In February 2008 La Tribune reported that France’s competition commission has decided not to take emergency measures against France Telecom, after Internet service provider Free lodged a complaint against the group for abuse of dominant position in the broadband sector. The competition authorities will continue to examine the case, however.
According to an August 2007 French Business Digest Report, a French anti-trust watchdog could fine France Telecom for dominant market position abuse. The alleged abuses date back to 2001 when France Telecom held more than 90 percent of the French ADSL market through its subsidiary Wanadoo. There were two complaints against France Telecom brought before the French competition authorities by local Internet service providers – Club Internet and Liberty Surf, in 2001 and 2002. The complaints, however, were withdrawn after the two Internet providers reached an agreement with France Telecom. The company has already entered into a settlement procedure with the competition authorities and if France Telecom does not contest the complaints and promises to change its market behavior, the company may be given a lower sanction.
Corporate Responsibility Policies and Practices
The company established corporate responsibility practices in 2005 and issued a comprehensive report for 2006. France Telecom participates in the UN’s Global Compact, which is a voluntary commitment that allows companies to highlight their corporate responsibility.
In July 2006 the European Parliament condemned ethical breaches by Internet sector companies, including France Telecom. At the time, Reporters Without Borders hailed a resolution on online free expression that was passed by the European Parliament and said it hoped the European Commission and EU member states would heed its recommendations. The resolution criticized companies that cooperate with repressive regimes and named France Telecom among others. It also welcomes a draft law designed to regulate the activities of Internet companies when operating in repressive countries – the Global Online Freedom Act (GOFA). The resolution calls on the European Commission to establish a “voluntary code of conduct” that places limits on the activities of companies in repressive countries.
Union Relations and Workplace Practices
France Telecom workers are represented by UNI and several other French labor unions. Approximately 22% of France Telecom workers went on a 24-hour strike in September 2004 to protest the privatization of the company.
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