TELECOM ITALIA SINGS AGREEMENT WITH TRADE UNIONS TO INCREASE PRODUCTIVITY
27 März 2013 - 7:00PM
Italian Regulatory (Text)
PRESS RELEASE
TELECOM ITALIA SINGS AGREEMENT WITH TRADE UNIONS TO INCREASE
PRODUCTIVITY The agreement provides for a more effective labour
organization. Surplus labour to be managed mainly through
solidarity contracts
Rome, 27 March 2013 Telecom Italia and the Trade Unions today
signed an agreement reached after constructive dialogue between the
two sides aimed at increasing internal productivity through a more
effective organization of labour and internalisation of activities
outsourced externally. Redundancies will be managed mainly through
the adoption of solidarity contracts. The understanding, that is
particularly innovative in terms of job requalification and
evaluation, allows respecting the Company's 3-year Plan targets
that foresee continuation of the process of cost reductions,
including labour costs. In a TLC market under a strong competitive
pressure on prices and the resulting squeeze on revenues, margins
and the sustainability of cost structures, Telecom Italia and the
Trade Unions agreed on the need to implement structural measures to
offset the reduction in work volumes and safeguard long-term
employment. Further, the agreement signed today allows managing the
redundancies identified for the period 2013/2014 through social
security cushions such as solidarity contracts avoiding layoffs.
Specifically, 2,500 of the 3,000 jobs at risk at Telecom Italia SpA
will be saved through solidarity contracts covering around 32,000
employees. Meanwhile 500 workers will leave the company either
because they already have legal pension entitlements or voluntarily
because will reach pension age during the flexibility period under
Law 223/91. A further 350 surplus jobs identified at Telecom Italia
Information Technology for the period 2013/2014 will be protected
using the same support mechanisms. The main measures planned are as
follows: Caring Services Division The company accepted the trade
union proposal to put back the spin off of this business until 1
April 2014. The parties also agreed to rationalise the Caring
Services sites with the closure of 47 centres with less than 46
employees. The staff involved will be allowed to apply to work from
home. Open Access Telecom Italia will begin a reorganisation of the
work of the maintenance and customer repair teams. For example,
each engineer will be given a company vehicle to keep at home to
save time reaching customers' premises and a vehicle geolocation
system will be introduced to optimise operations and improve safety
standards.
Directory Assistance The company promised to avoid wholesale
redundancies even in the event of a complete cessation of
activities in an area which has struggled for years from shrinking
business due to changing market conditions. The parties agreed to
find sustainable solutions including reskilling of workers to fill
more productive positions. Bonuses The parties also set out the new
bonus regime for the 2013-2015 period. The new bonuses will be
linked to annual targets based on the company's financial (EBITDA,
revenues) and quality (customer satisfaction) results. COO Marco
Patuano, said: "Today's agreement demonstrates our readiness for
constructive dialogue with the Trade Unions, to guarantee respect
for and protection of the workers, who represent an important asset
for the Group. In this context, I believe it is particularly
important to stress the constructive and responsible attitude of
the trade unions, that not only agreed on a painless solution to
the problem of surplus jobs but also contributed, in accord with
the Company, to a farsighted plan to raise productivity to protect
employment over the coming years. "This agreement enables us to
respect our 3-year Plan efficiency targets and go forward with
greater confidence with the investments necessary to relaunch
Telecom Italia."
Telecom Italia Press Office
+39 06 3688 2610 http://www.telecomitalia.com/media
Telecom Italia Investor Relations
+39 02 8595 4131
http://www.telecomitalia.com/investorrelations
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