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The agreement with Trade Unions for the management of staff redundancies

05/09/2017 - 09:45 AM

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In an increasingly challenging context, Telecom Italia and the Trade Unions have held constant discussions aimed at finding solutions to achieve the goal of safeguarding employment levels by recovering efficiency and productivity.

The agreements signed over the years have identified a series of actions in support of employability, intended to encourage globalisation processes of assets of high value, through an important professional retraining programme supported by dedicated training courses.

The agreements also provided, for the management of surplus production, the use of socially sustainable instruments, such as Defensive Solidarity Contracts, support for early retirement using the voluntary redundancy tool pursuant to Law no. 223/91 and, since 2016, Art. 4 of the Fornero Law. Defensive Solidarity Contracts are agreements that provide for working hours to be reduced in order to avoid, partially or totally, reduction of staff. The Contract therefore allows for the safeguarding of employment levels during the period needed to reorganise processes and retrain professional skills. For the workers to whom the contract will be applied, provision is made for INPS [social security] to make up part of the remuneration not received due to the reduction in working hours.

As from 4 January 2016, TIM applies the Defensive Solidarity Contracts pursuant to Legislative Decree No. 148/2015, implementing the Jobs Act. The 24-month Contract (which can be extended for a further 12 months by union agreement), provides for a weekly reduction of the working hours by 8.85%, for a total of 23 days each year.

The table below summarises the benefit on the cost of labour and the number of Group employees to whom the Solidarity Contracts have been applicable from 2010.

SOLIDARITY CONTRACTS IMPACTS
2010 (millions of euros) 28.4
No. of people involved 32,367
2011 (millions of euros) 77.2
No. of people involved 32,125
2012 (millions of euros) 67.7
No. of people involved 30,220
2013 (millions of euros) 108.4
No. of people involved 36,566
2014 (millions of euros) 144.7
No. of people involved 36,175
2015 (millions of euros) 44.4
No. of people involved 34,927
2016 (millions of euros) 117.5
No. of people involved 33,697

In 2017, the benefit on the cost of labour deriving from the application of the current Solidarity Contract is estimated as more than 120 million euros; the current trade union agreement of TIM SpA provides for the potential to extend its application for a further 12 months (2018), subject to agreement with the Trade Union Organisations.