Social dialogue and internal communications

2) Respecting freedom of association and promoting social dialog

Effective labor-management communications and social dialog pave the way for the stability needed to implement the Group's development strategy. Such communications with staff or their representatives are therefore organized and conducted by each Group company on a regular basis.

AXA also has set up a European Works Council (EWC), whose extensive role goes beyond the regulatory requirements in force. The EWC is made up of staff representatives from AXA's largest European subsidiaries, who meet in order to receive and exchange information on the social, strategic and economic issues that concern the Group, and maintain an ongoing dialog between employees and management.

In October 2005, the Group EWC agreement was renewed for a four-year period. The initial agreement was concluded before the European directive on works councils became mandatory. In this way, staff rights to be consulted and informed were freely agreed on by management and employee representatives before the directive's compulsory provisions actually came into effect. AXA holds two meetings a year, rather than the one required by law, in addition to a post-plenary session systematically held for debriefing. These monthly EWC meetings are also attended by the chairman of the Group's management board. Moreover, the EWC's bureau, which features ten representatives, meet monthly.

The introductory section of this agreement is based on a number of international benchmark documents, such as the UN's Declaration of Human Rights and the International Labor Organization's standards, as well as AXA's own set of core values and commitments.

3) Responsible management of restructurings in Europe

The Group EWC agreement, signed in 2005, is based on a certain number of commitments to employees in the event of major organizational changes with impacts on jobs. AXA has developed the following principles with a view to guiding its various European business units in their local management:

• When organizational changes affect jobs, AXA pledges to supply relevant information and, as appropriate in light of local cultures and obligations, to consult with employees and their representatives.
• In connection with this information-gathering and consultative process, the data and information provided by AXA will include possible alternative solutions if relevant.
• Factoring in the interests of its employees, clients and shareholders, AXA undertakes to maximize any opportunities for internal and external redeployments, when applicable, for all AXA employees affected by possible employment issues.
• AXA will do its utmost to prevent compulsory redundancies and other collective transfers, by pursuing other approaches whenever possible. More specifically, AXA endeavours to : 1) Seize the opportunities offered by natural headcount attrition to facilitate employment issues; 2) Make every effort to help employees analyze their skills and career paths and offer them training and reassignment opportunities; and 3) Give priority to voluntary departures and redeployments instead of redundancies and other forms of collective transfers.
• When geographic mobility is necessary, it must be offered as a matter of priority to employees who volunteer to move, with this process managed with a view to enabling their integration into a new environment under the best possible conditions.
• AXA pledges to recognize staff representatives and uphold their freedoms, rights and functions, in line with national legislation and, where relevant, agreements in force in local business units.
• Aware that training represents a major investment both for the Group and for its employees, AXA is committed to developing a continuous learning culture.
• AXA will not discriminate against its staff on the basis of their gender, race, color, ethnic origin, genetic makeup, disabilities, sexual orientation, language, religion, personal convictions, union membership or political opinions.