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ITALY METAL INDUSTRY

ITALY METAL INDUSTRY. 1.800.000 WORKERS. GENERAL INCREASE OF UNEMPLOYMENT TO 9%: METAL SECTOR PRODUCTION 2008 - 5.2% First quarter 2009 - 30% Expected 2° quarter - 33,7% GPD expected in 2009 - 6% First 5 months export - 27,7% Import - 32,3%. MAIN TOOLS USED:

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ITALY METAL INDUSTRY

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  1. ITALY METAL INDUSTRY 1.800.000 WORKERS • GENERAL INCREASE OF UNEMPLOYMENT TO 9%: • METAL SECTOR • PRODUCTION 2008 - 5.2% • First quarter 2009 - 30% • Expected 2° quarter - 33,7% • GPD expected in 2009 - 6% • First 5 months export - 27,7% • Import - 32,3% • MAIN TOOLS USED: • CASSA INTEGRAZIONE GUADAGNI (CIG) • FIRST 7 MONTHS 20092238 Millions h. • INCREASE from Januari to June +287% Cyprus 13/16 september 2009

  2. METAL INDUSTRY ITALY • INCREASE CIG ON 2008 (ordinary) +465% (see that 2009 only 7 months) • EXTIMATION PEOPLE INVOLVED IN CIG: • ABOUT 512.000 WORKERS • The Estimation of the the total number of workers at zero h. is • 257.000 workers (effect of negotiations: rotation) • OUTLOOK AUTUMN/2010 • NO RECOVERY 2010 • AFTER 2010 VERY VERY SLOWLY • END OF POSSIBILITY ORDINARY CIG (52 WEEKS) • TO AVOID DISMISSALS EXTENSION OF CIG TO ALL • WORKERS INCLUDED PRECARIOUS • DEMAND FOR 104 WEEKS (END 2009 ALL 2010) Cyprus 13/16 september 2009

  3. MAIN TOOLS USED IN THE NEGOTIATIONS DURING THE CRISIS • CASSA INTEGRAZIONE GUADAGNI (CIG) • CIG IS SOCIAL TOOL FINANCED BY THE INDUSTRIAL PRIVATE • EMPLOYERS AND WORKERS TO FACE WORKFORCE PROBLEMS. • ORDINARY CIG (usually used for markets cycles and waves) • EXTRAORDINARY CIG (restructuring, crisis, end of activity) • BOTH ORDINARY AND EXTRAORDINARY • DON’T’ CUT THE WORKING CONTRACT • BETWEEN THE COMPANY AND THE WORKER • THE LIMIT FOR ORDINARY IS 52 WEEKS (in 2 years) • THE LIMIT FOR EXTRAORDINARY 2 YEARS • ECONOMIC COVERAGE FOR WORKERS • ORDINARY LIMIT OF 750E per month • 900E per month • according the yearly income Cyprus 13/16 september 2009

  4. MAIN TOOLS USED IN THE NEGOTIATIONS DURING THE CRISIS • EXTRAORDINARY • Same limit • MOBILITY • Normally used in redundancies cases. • 2 year of mobility after final dismissalsnegotiations to obtain voluntary • mobility, normally used to take the workers to the pension. • Economic coverage: first year as CIG then decrease till 80% of the limit. • Both CIG and mobility are increased each year according to the scheduled • inflation rate. • SOLIDARITY CONTRACT • THE ITALIAN LAW PROVIDE A REDUCTION OF WORKING TIME AND • SALARY FOR ALL THE WORKERS INVOLVED TO AVOID DISMISSALS. • The social security finance 60% of the quantity of the reduction of • working time Cyprus 13/16 september 2009

  5. COLLECTIVE BARGAINING AND THE MANAGEMENT OF THE CRISIS AT SECTORAL AND COMPANY LEVEL Cyprus 13/16 september 2009 Sabina Petrucci Fiom Cgil

  6. ITALY THE ITALTEL CASE Agreement (june 2009)after the declaration of redundancies. Validity of the agreement 18 months (july 2009/end 2010) ITALTEL:IT company which core business is the projects on new generation network (softwitch and voice over ip). Geographical presence: Europe and South America Total employees in April 2009: 2.271 (all skilled workforce and white collars)192 workers work out of Italy. • MAY 2009 :Management announced redundancy for 450 workers due to the economic crisis. After the negotiations, the number of redundancy was reduced to 250 employee. The agreement provide the use of 2 tools to manage the redundancy: • Solidarity contract • Volountary mobility towards the retirement. Cyprus 13/16 september 2009

  7. SOLIDARITY CONTRACT 1387 workers (white collars) involoved EXCLUDED: • Employees working abroad (192) • Managers (130), • Workers who are working in the customers’sites (about 400) • Workers having the requisites for the volountary mobility (160) Cyprus 13/16 september 2009

  8. CONCRETE APPLICATION SOLIDARITY CONTRACT For all the period of validity of the agreement 1200 employee reduce their working time for 2 half day per month (8h) and 3 weeks of stoppage (15days) 187 employee make 3 weeks of stoppage The total reduction of working time is 10% in 18 months for 1200 workers and 5% for 187 workers. The hours of reduction of working time are payed 60% by the social system and they have a different level of taxation (lower) The lost of salary for the people is about4% (per year) for 1200 workers 2% for 187 employee. This type of reduction of working time allowed to recover 90/120 people in redundancy. Cyprus 13/16 september 2009

  9. VOLUNTARY AND STIMULATED MOBILITY This tool involves about 160 workers who have the requisites to go to the pension after the mobility period. It has been negotiated that the company will give an economic integration to all the employees who decide to go in mobility, so that they can reach the 80% of their wage (net wage). Cyprus 13/16 september 2009

  10. THE INDESIT CASE Agreemnet (july 2009) after the declaration of closure af the Plant in None (Turin). INDESIT: Indesit group is an Italian Multinational producing household appliances. Geographical presence: EU, Russia and Turkey. Total employees: about 17.000, more than 5000 in Italy (majority of blue collars). 8 production sites in Italy. February 2009: During the crisis, the Indesit group decided to change completely his behaviour (good industrial relation system, good agreements included the international framework agreement) and announced without any discussion with unions the closure of None plant (600 workers) and the will to transfer the production of dishwasher machines in Poland (incentives by polish government). The unions against this decision (for industrial reasons) and mobilization. All the workers of the group were involved in the mobilization (strikes and demonstrations) Cyprus 13/16 september 2009

  11. THE INDESIT CASE • In July 2009 the agreement was signed in the Economic ministry with the presence of the Piemonte region. The main results of the agreement were: NO CLOSURE OF PLANT, NEW INDUSTRIAL PLAN TROUGH A RESTRUCTURING AND SOCIAL PLANS KEEPING ONLY ONE PART OF THE OLD PRODUCTION. • ENGAGEMENT OF INDESIT GROUPTO TO MAINTAIN THE INDUSTRIAL AND PRODUCTION CAPACITY IN ALL THE ITALIAN PLANTS. • The agreement provides 3 main tools to manage the redundancies (150) and the market crisis • CIGS • VOLUNTARY MOBILITY • INCENTIVES CIGS for 12 months: CIGS for 12 months for all the workforce: First step for 390 workers in CIGS, with rotation and so the possibility that all the 610 workers are involved. The weekly working time in CIGS is 32 h. and 8 covered by CIGS. Cyprus 13/16 september 2009

  12. THE INDESIT CASE Voluntary mobility: for 150 workers mostly to take them to the pension. Engagement to give un economic sum to all the companies who will employ the people in voluntary mobility but without requisites for pension with an open ended contract EDUCATION PLANS FOR PEOPLE TO BE REEMPLOYED Cyprus 13/16 september 2009

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