Italy: new agreement at TIM (formerly Telecom Italia) to speed up early retirements and facilitate generational renewal

On 08 March the TIM telecommunications group together with the SLC-Cgil, Fistel-Cisl, Uilcom and UGL Telecomunicazioni unions signed an agreement providing for 1,300 voluntary early retirements by 30 November 2021, which will apply to workers becoming eligible for pension rights prior to the end of 2026. Similar agreements have already facilitated the departure of a total of around 4,500 people over the last two years. The agreement notes that TIM is operating amid ‘strong competitive pressure and profound technological transformation.’ Consultation between the social partners has enabled the identification of a pathway that can gradually transform the group’s ‘generational mix’ and ‘professional mix.’ The new agreement is based on a mechanism as provided for by the Fornero law, namely that those concerned will be able to take advantage of an early retirement mechanism, whereby TIM commits to contribute (to the INPS provident fund) sums corresponding to their monthly pension amounts, and to maintain their contributions until their official pension rights commence. This should enable TIM to lower the average age of its workforce (currently around 51yrs.) and to hire digitalization and innovation specialists. The agreement also provides for the completion of the voluntary-based (or rather ‘non-opposition’) employment reduction plan that has been in place over recent years, and which still has to reach its 340-person target. The social partners have agreed to extend this plan, in order to facilitate the departure of 178 employees by 31 December 2023. The telecommunications group currently employs approximately 42,600 in Italy.