AGREEMENT REACHED WITH UNIONS FOR 5,000 REDUNDANCIES THE AGREEMENT, CONFIRMING THE ANNOUNCEMENT OF 4 JUNE 2008, WILL BRING SAVINGS OF APPROXIMATELY 300 MILION EURO A YEAR UPON COMPLETION

09/19/2008 - 09:30 PM

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Telecom Italia announces that the final meeting with trade unions regarding redundancy proceeding ex lege 223/1991, begun on 26 June 2008 for 5,000 employees in excess of the company’s technical needs, took place at the Ministry for Labour.

The meeting ended with the signing of a union agreement in which the parties established that by 31 December 2010, 5,000 employees, among those who attain the requisite pension contributions during the redundancy period, will be made redundant. The Company will complete the redundancy package with a sum that will guarantee that 90% of an employee’s regular monthly pay cheque is received.

In the context of the overall agreement, Telecom Italia has committed to recruiting 600 workers in the two-year period 2009-2010 and from 1 January 2009 to convert 300 temporary contracts into permanent ones. 
Further, the Company will transfer 1,600 workers at the Telecontact center from 50%-partime contracts to 75%-partime contracts over the period 2009 – 2010.

The parties also agreed to a detailed programme of training and professional re-training interventions.

The agreement signed today is part of the efficiency and re-organization plan announced on 4 June 2008 and will bring a cost reduction of approximately 300 million euro a year upon completion. The agreement entails a one-time restructuring charge of 287 million euro, as already announced, which was included in the accounts on 30 June 2008.


Rome, 19 September 2008