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Orange offers compensation as trial of French Télécom bosses ends

At the end of a trial of more than two-and-a-half months on moral harassment charges of the former CEO of France Télécom and six other top executives, whose brutal plan of cost-cutting and job-axing in the mid 2000s was cited as the cause of dozens of suicides and attempted suicides among personnel, Orange – as the company was renamed in 2013 – has offered to pay damages to the victims and relatives, while staff unions are demanding that compensation be paid by the defendants themselves.

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French telecoms operator Orange  has offered to pay compensation to victims and relatives after a series of suicides and attempted suicides at the company in the late 2000s, on the last day of a two-month trial of former bosses over the deaths, reports Reuters.

Ex-CEO Didier Lombard, six other former executives and the company itself are accused of moral harassment in the first case of its kind on this scale in France, setting a potential precedent for large businesses.

Between April 2008 and June 2010, prosecutors listed 18 suicides and 13 suicide attempts by employees of Orange, still called France Télécom at the time, when the company was engaged in deep restructuring after its privatization.

The deaths shocked the nation and raised uncomfortable questions over corporate culture.

Orange’s secretary general, Nicolas Guerin, told the court the company was anticipating requests by victims and their relatives for financial compensation and that it was ready to address them.

“We recognize that the transformation of France Télécom led to individual sufferings, which the company, alas, wasn’t always able to prevent,” he said. “In some cases, these sufferings can be addressed through damages.”

Central to the case is a plan under which the telecoms operator aimed to cut its workforce by 22,000 and redeploy 10,000 workers between 2006 and 2010. Prosecutors believe this plan triggered the wave of suicides.

Lombard, who denied any wrongdoing, faces one year of jail and a fine of 15,000 euros if convicted.

Read more of this report from Reuters.