Employees of Atmel fab at Rousset on strike

PARIS, FRANCE: Employees at the fab of Atmel Corporation in Rousset, France, are on indefinite strike.

The action by the workers is in protest against the decision by Atmel Corporation to sell its site in Rousset without guaranteeing its employees that an agreement – which was signed in March 2009 – will be honoured and implemented.

According to the agreement, till 2013 and in the event of the closure of a site, a redeployment bureau will be set in order to give each employee a payoff beginning at 34,000 euros (around $47,500).

The striking workers argue that Atmel Corporation’s fab in Rousset must produce 6,000 wafers a week to stay competitive; instead, the fab produces only 3,200 wafers a week now. Potential buyers, they add, would want to raise the production of wafers.

On the financial results for the third quarter of 2009, Stephen Cumming, vice-president (finance) and CFO of Atmel Corporation, had said earlier in November 2009 that the “negative impact” was far more than expected as the company’s fab at Rousset was operating below-utilization levels than planned.

The company, Cumming added, expects that the gross margins in the fourth quarter of 2009 will continue to be adversely affected by lower production levels at the Rousset fab.

Atmel Corporation reported sales worth $318 million for the third quarter of 2009 – up by 12 per cent sequentially, and surpassing the top end of its range by around 4 per cent to 8 per cent.

In the same period, gross profit represented 31.1 per cent of revenue, which was a little lower than the group’s guidance range of 32 per cent-35 per cent, Atmel Corporation said in a statement.

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