The merger of Totalfina and Elf Aquitaine, which was approved by the European Commission on February 9, 2000, has led to the creation of TotalFinaElf, France’s largest industrial group and the world’s fourth-largest oil company. Employee teams will now be combined into a new organization, business by business.

A proposal concerning the organization of the oil segment and corporate divisions was submitted on
May 18, 2000 to employee representatives of the following legal entities: Total Raffinage Distribution SA, TotalFinaElf SA, Elf Antar France, Elf EP, Elf Lubrifiants and Elf Trading France SA.

For the businesses concerned, the project will result in the creation of 193 positions and in the elimination of 1,313, positions resulting in a net reduction of 1,120 jobs due to synergies that were forecast when the merger was first announced.

The reorganization project is supported by a proposed redundancy plan that is fully in line with the Group’s clearly announced commitment to limiting, as much as possible, the impact of job reductions on individuals.

The proposed redundancy plan is based on the following general principles:

• Departures will be on a voluntary basis.
• A voluntary early retirement program with negotiated terms will be proposed. The program, which will not apply to refinery personnel, will be gradually implemented through June 30, 2003. An estimated
  1,650 employees could take advantage of the program.
• Reassignments within the company will be supported by the creation of placement offices and facilitated by special conditions for employees who accept to transfer to other regions.
• Under certain conditions, employees interested in pursuing opportunities outside the new Group (such as the creation or acquisition of a business, or other personal project) may be eligible for assistance if they voluntarily choose to leave.

These measures are designed to avoid the need for any dismissals.

Now that the project has been submitted to the various employee representative bodies, a first meeting of the central and other works councils has been organized for May 29 and 30 to explain the project and its importance for the Group’s future.

After the first meeting, employees will be kept regularly informed of progress in implementing the procedure and of negotiations with employee representatives.