Suicides at France Telecom

Presented by:
Hina Naveed
Sumiya Mashadi
Umme Laila
Introduction
 France telecommunication was founded in 1886 as
Generale des telecommunications
 It was a state owned monopoly till 1988
 It was one of the world’s leaders in telecommunication
 Its global interests were in internet, digital television,
mobile phone networks and fixed line telephony
 Most of its divisions operated under the orange brand
 Annual consolidated revenue in 2008 were 48.3 billion
Euros
 The company employed approximately 186,000 people
Characters
Who was Xavier Darcos?
Who was the chairman and CEO of France Telecom?

Who was Louis Pierre?

Who was Simon Heffer and Christian Baudelot?

Post-privatization developments
The privatization of FT was followed by the similar moves
across Europe as governments sold off their telephone
networks
The process aided the formation of large modern

organizations ie. British Telecom, Telefonica, Deutshe Telekom

The new private companies began to reshape the European

telecommunication industry
Why were the France Telecom employees not enthusiastic
after the privatization of FT?
FT entered the world of private enterprise at the time when
global markets were embarking on a period of rapid growth
The internet was growing at a phenomenal rate

Wireless mobile technology was growing rapidly

This offered massive growth potential for FT’s Orange brand

Acquired fro Vodafone in 2000

Shares peaked around the globe ie 26.9 billion pounds

1) Why did the stock prices for France telecom face a
downfall?
2) Why did the employees in France felt that their job was
under attack?
The Suicides:

 Most recent Suicide attempts with suicide notes

 Suicide of Stephanie

 All the Suicide notes blame the working conditions at France

Telecom
Questions:
When did the Stephanie die and how?
What could be the possible reasons for Stephanie’s suicide?
Explanations:
 Bill Stewart Theory
 The Economist Comments

 Shift of Focus and Management Style After Privatization

 Psychiatrists Statements:

 Patrick Legeron

 Brigitte Font Le Bret

 Psychoanalyst Statement (Marie Peze)

Questions:
What was the common thing among all psychologically ill
France Telecom employees?
Who observed it?
Reactions
 Crisis meeting between labor minister Xavier and FT’s Didier
on Sep, 2009
 Labor minister claims
◦ No technological progress without social progress
◦ Employer bullying, systematic mobbing, driving worker to
despair
 Demanded
◦ Stop job transfer, reduce reorganizing and restructuring and
jobs must stay in France
 France telecom defensive claims
◦ Accepted restructuring program might have played role in
the suicides cased
◦ But, FT’s suicide rate is statistically normal that is 15.3
compared to national suicide rate 15 per 100,000.
◦ No increase of suicides rate compare to previous years (28-
2000, 29-2002 ; recently 23- 18months period)
◦ Promoted by personal rather than professional causes.
 Criticized role the media played in bringing the issues afore.
◦ Contagious effects of reports
 CEO was himself criticized.
◦ These are dramas and they happen
◦ “Mode du suicide”
Promises made
 Train managers in addition to familiarizing them with
scientific methods of successful management
 Systems to monitor stress levels; external counsels and
scientific advisor
 Timeline?
Repercussions
 FT failed to quell the out-cry.
 Chief Executive, in-charge of restructuring programs resigned.
◦ Reasons
 Suicides make him feel sad
 External stakeholders had their personal agenda
 Huge transformation- abrupt changing of job , jobs
disappearing because of technology
 Feb, 2010. Government inspection revealed
 Pathogenic management methods applied to achieve job
reduction target of 22,000 in 2 years
 Consequences of the report
◦ Lombard step down as CEO, Richard took the charge
◦ New proposals
I. Recruit 3500 more staff to relieve pressure on existing staff
II. Moratorium on reorganization; job transfer voluntary not
compulsory
III. 1100 top management 30-50% of salary would be linked to
financial as well social performance of company
IV. Provide managers with sensitivity training and decentralize
many decisions taking (that used to be taken at national level)
 July 2010, CEO announced Five-year strategy aimed at ending the
suicides and winning back investors.
 CGT union welcomed the “good intention” ,yet with some reservations
in their mind.
Recommendations
 Change of culture:
◦ 60% civil servant to working in competitive business (no humanity
anymore, only business account)
◦ Smooth shift while providing Pre-training,
◦ Provide EAP , Rehabilitation
◦ Gives meaningful and challenging roles to employees to keep them
motivated;( French worker define themselves by their profession)
 Severance pay:
◦ Negotiate the terms with them
◦ mostly employees were 50+ , hard to be retrained, no alternative for
them
 Organization citizenship behavior
◦ Labor unions(CFE)- should bring matter( bullying, over workload) to
public/media rather suiciding
◦ Beat workplace stress by reaching out- to coworkers, take about it
◦ Appeal to court of law
 HR role should be prominent in the company.
 New hires as well Old employees
◦ Stress test- to see if personality can cope with the job-design.
◦ Periodically mental health check-
 questionnaire (questionnaire asks staff if they have felt "desperate",
"under pressure" or if they "cried easily" )
◦ Encourage them to take-care of health with exercise and nutrition;
monthly external counsellor, trainer
 Since job security contract are signed
◦ Offer golden shake hands
◦ Job sharing( less pay, more employees adjusted)
 • Finally, look for employees those are emotionally more strong
and willing to take change
I. For job relocation and rotation.
II. Slowly make it a culture of the company.
• Affirmation of religious/Catholic teachings on suicide.
 Old and New Testament; suicide does not seem to be prohibited.
St Augustine (350–430 AD), however, considered it a sin,
violating the fifth commandment, ‘Thou shall not kill

Thank you.