Human Resources and
Industrial Relations
Human Resources
At December 31, 2005, the Edison Group had 2,963 employees (including the staff of companies consolidated by the proportional method), compared with 4,536 at the end of 2004.
The deconsolidation of the engineering operations (Tecnimont) is the main reason for the overall reduction in staffing levels (-1,573 employees compared with 2004).
In addition, continued implementation in 2005 of the corporate restructuring program led to the merger by absorption of Società Megs Srl into Edison Spa (143 employees were affected) and the mergers by absorption of all of the operating companies of the Gas Distribution Division into Edison D.G.
The table below provides a breakdown of the Group's payroll by type of business at December 31, 2005 and shows the changes that have occurred since December 31, 2004. The figures are presented in accordance with the newly adopted IAS principles.
Number of Employees by Type of Business
Number at end of period 2005 2004 % change
  IAS/IFRS IAS/IFRS  
Electric Power Operations 1,992 1,996 (0.2%)
Hydrocarbons Operations 441 416 6.0%
Corporate Activities 526 539 (2.4%)
Core Businesses 2,959 2,951 0.3%
Water 4 7 (42.9%)
Engineering - 1,578 n.a.
Edison Group 2,963 4,536 (34.7%)
       
While we may all be different from each other, we must all speak with
the same tone of voice.
The significant reduction shown above is due to Tecnimont's deconsolidation.
In 2005, as required by Legislative Decree No. 196 of June 30, 2003 (Privacy Code), the Group updated its Planning Document on the Security of Personal Data.
Industrial Relations
The main developments that occurred in 2005 are reviewed below:
  • In July, signing of a supplemental agreement with the unions that affected all Group companies that are covered by the national collective bargaining agreement for electrical workers. The main issues that were settled with this contract include: system of industrial relations; renewal of the performance bonus, which will be based on profitability and productivity parameters; definition of administrative guidelines for the delivery of supplemental health benefits; and renegotiation of specific financial benefits.
  • Start of negotiations through Assoelectrica (an electrical industry association) in preparation for the renewal of both the benefit and compensation portions of the national collective bargaining agreement for the electrical industry. This contract, which expired on June 30, 2005, covers 74% of the employees of the Edison Group.
  • Completion of the process of dissolving the FIPDAM (a supplemental pension plan for managers of the former Montedison companies), the final financial statements of which were approved by the members in December, and concurrent switch to the Previndai as the reference retirement fund for Group managers.
  • Signing by Edipower of the Minutes of a Labor Union Agreement concerning the performance bonus for the four-year period from 2005 to 2008.
  • In October, successful conclusion of discussions held with the unions at the national level concerning a new organizational model for the operation of conventional thermal facilities.