Italy: agreement is struck between TIM (formerly Telecom Italia) and unions that avoids jobs losses

After a 6-month long dispute, Italy’s leading telecommunications group TIM has agreed to a proposal put forward by the SLC-Cgil, Fistel-Cisl Uilcom-Uil, and Ugl Telecomunicazioni unions, so that the Group’s restructuring program, as part of its strategic 2018-2020 plan, can go ahead while avoiding both redundancies as well as recourse to the ‘cassa integrazione’ (technical unemployment solution). The agreement, which relied heavily on significant mediation efforts by the new Economic Development and Labor Minister, Luigi di Maio, intends for lower working hours and salaries for almost 30,000 employees plus 4,500 early retirees. In addition management and unions signed an agreement in principle, which relaunches company level collective negotiations and marks a clear easing of tensions surrounding the group’s industrial relations.
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Solidarity contracts for 29,546 employees. The agreement was struck during the evening of 11/12 June and must now go for employee approval by 18 June. It includes a 10% reduction in working hours (the equivalent of 26 non-working days) for a one-year period starting 19 June 2018 that will affect almost 30,000 employees. Termed defensive ‘solidarity contracts’*, they will replace the TIM’s preferred option of the ‘cassa integrazione’ (technical unemployment solution).

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