Unions at Alcatel Alsthom SA’s Alcatel Standard Electrica SA telecommunications equipment subsidiary in Spain last Friday bitterly rejected a restructuring plan under which 24% of the workforce would be declared redundant. The Spanish unit last Wednesday approved the restructuring plan for 1996 to 1998, which plans to cut 1,400 jobs during this period in addition to the 575 voluntary redundancies and early retirements that have taken place since January. Alcatel’s chairman, Serge Tchuruk, is having to take drastic action to turn the company around after record 1995 losses. Standard Electrica is almost as much of a problem for the French company as the Alcatel-SEL AG German subsidiary and recorded operating losses of $130m in 1995 as well as another $101m in non-recurring charges; more big losses are expected this year, but the aim of the restructuring is to achieve operating profits in 1997 and net profits in 1999. Alcatel Standard Electrica will become a holding company and change its name to Alcatel Espana SA. The trade unions insist that a large part of the losses are a result of bad management. The unions have called for strikes to protest the restructuring plan.
