Labor relations

Electricity area
At the Group level, 2009 saw an initial important success in discussions with the Italian trade unions with the renewal, on March 11, of the provisions governing union leave, which expired on December 31, 2008, and were extended to March 31, 2009. Under the new agreement, for the period 2009-2012, a ratio was introduced based on the number of active employees in order to determine the total number of hours, which includes a significant, progressive reduction in total hours and in the percentage of those eligible, including the company-level trade union representatives. As concerns these representatives, the agreement of November 5, 2008, concerning the payment of expenses has also been supplemented. In March 2009, there was also the signing of the national agreement to bring greater efficiency to ARCA and approval of a series of changes to its bylaws. Also of particular importance was the signing on April 27, 2009, by Enel, CGIL, CISL, UIL and the industry federations, of the Social Responsibility Protocol and of the Industrial, Environmental and Employment Policy Observatory. These two documents complete the discussion of the principles of sustainable development and, with inclusion of the Observatory, represent an important aspect of labor relations concerning the industrial, environmental and employment strategies that Enel intends to pursue. In the 2nd Half of 2009, the Observatory began actual operations with two extraordinary sessions, the first dedicated to Generation and Energy Management (with an updated report on the context in which this division operates, as well as on the operations and safety of the power plants, with a focus on the issues currently affecting the Federico II plant in Brindisi) and the second for Infrastructure and Networks (with a focus on strategy and on the 2009 additional investment plan).
Finally, on December 23, within the scope of the principles of the Social Responsibility Protocol, a framework agreement was signed with the national trade unions for the presentation of Enel training plans to Fondimpresa. By way of this agreement, beginning in 2010, Enel will be able to take advantage of significant resources resulting from the allocation of a portion of its social security contributions to Fondimpresa (established under Law 388/92, this is Italy’s largest joint interprofessional fund for the management of permanent training for blue collar workers, office workers and middle management).
With regard to the second-level negotiations, on April 30, 2009, the amount to be paid under the 2008 performance bonus was determined, including amounts for May. As concerns unit productivity/quality, in July all of the divisions completed their reporting on the 2008 targets and paid the related bonuses, while also assigning the specific targets for 2009.
On May 22, based on Enel’s commitments following the earthquake in Abruzzo on April 6, 2009, an agreement was signed with the trade unions Filcem, Flaei and Uilcem for the implementation of the measures Enel announced to aid the afflicted population. This agreement was then supplemented on September 3 with additional measures to aid Enel’s employees living in the towns stricken by the earthquake.
On March 5, 2010 a draft agreement was signed for the renewal of the industry bargaining agreement (which expired on June 30, 2009). These negotiations have become quite complex given the context of labor relations that arose in Italy following the agreement of January 22, 2009, to revise contract structures and the inter-union agreement of April 15, 2009, both without the participation of CGIL, as well as the formal rejection by the three trade unions of the Enel agreement regarding the strike of November 1991, which was received on June 11, 2009.
The agreement reached has a term of 42 months (expiring on December 31, 2012), with an average wage increase of €157 once fully implemented, plus the payment by companies of €4 to the supplementary pension fund (FOPEN) for enrolled employees.
The accord sets out the guidelines for rules governing strikes. One important aspect is the agreement between the parties to adopt procedures that ensure the continuity of service and safety for all users during electricity industry strikes.
In 2009, numerous meetings were held with the Italian national and local trade unions concerning the reorganization of the company’s divisions.
For the Infrastructure and Networks Division in particular, the national discussions on the effects of the integration of high-voltage operations in the Zone Operational Network Units on the organization of the power grid reached a conclusion. Local union consultations were completed on July 1, 2009, enabling work to begin on implementing integration. Personnel training initiatives begun in 2009 to support the integration process will continue in 2010.
Also in July, the plan was presented to the trade unions with regard to taking on personnel for division operations under internship arrangements, which will make it possible to add 500 workers in the Operational Network Units.
In April, following the creation of the Renewable Energy Division, the Generation and Energy Management Division concluded talks with the national trade union secretariats concerning the new organization of the hydroelectric power units of the Generation business area. The procedures for transferring the “Bolzano” business unit of Enel Produzione SpA to the newly established Newco Srl (under Article 47 of Law 428/1990 as amended) have also begun. For the Sales Division, trade union talks concerning the division’s reorganization were concluded on June 5, with a significant rationalization aimed at further developing its leadership position in the Italian power industry.
In October, talks concluded with the national trade unions concerning the new credit organization.
With regard to the Renewable Energy Division, in 2009, following the completion of national-level talks concerning the new organization, meetings were held and concluded with the regional trade union offices in order to verify and implement the local level measures concerning local operational units and the effects on personnel in general.
The Engineering and Innovation Division concluded talks with the national trade union secretariats, which began in 2008, concerning the new organization of the division and then concluded discussions with the regional offices regarding the related effects on personnel. After this, the division began new talks with the national secretariats regarding the fine-tuning of the division’s existing organization.
The project has begun to establish a company out of the Engineering and Innovation Division. As such, procedures were begun (under Article 47 of Law 428/1990) for the transfer of this business unit from Enel Produzione to the new company effective as of April 1.
In March, within the Human Resources unit, Enel Servizi began the human resources transformation (HRT) program aimed at modifying the model of operations for the Personnel Service Center (PSC) so as to rationalize company processes, focus resources on higher value activities, and achieve important goals of a purely operational/functional nature. In April, as concerns the Information & Communication Technology unit, a new organizational structure was defined for the Demand & Delivery Management office of Infrastructure and Networks, seeking to leverage the organizational changes of the Infrastructure and Networks Division.
In July 2009, talks began concerning the reorganization of operations of the Information & Communication Technology unit of Enel Servizi.
Finally, on November 11, with the signing of the agreement under Article 2112 of the Italian Civil Code, the procedure under Article 47 of Law 428/1990 was completed for the merger of Sfera Srl into Enel Servizi Srl. The transfer of employees to Enel Servizi Srl is to take place effective May 1, 2010.
In June, with regard to transnational information and consultation, Enel’s European Works Council, established by way of the agreement of December 5, 2008, began operations with its first meeting with Group management following approval of the 2008 financial report and the 2009-2013 business plan. Work then continued with the meeting of the Select Committee on July 30 and the second plenary session of November 4-6, which focused on Group performance for the 3rd Quarter of 2009, as well as on the development plans for the Renewable Energy Division and the safety issues throughout the Group.

Gas area
In the 1st Half of 2009, work continued for the bilateral commissions and the working groups established concerning the “deferred commitments” (healthcare, on-call work) as established in conjunction with renewal of the financial section of the 2008-2009 national collective bargaining agreement for the gas and water industries of January 15, 2008. During the same period, as concerns the Gas area of the Infrastructure and Networks Division, regional talks continued regarding verification of the employee categories within Enel Rete Gas, and talks began regarding a new system for organizing on-call availability. In June, the agreement concerning the 2008 performance bonus was signed.
The national trade unions were also informed of the transfer of Enel Rete Gas to a third party. With regard to this event, on October 30, 2009, an agreement was signed with the unions to maintain the relationship between Enel Rete Gas and FOPEN.
In November, an agreement was signed with the national trade unions which will govern the gradual extension, throughout 2010, of the electricity-industry agreement to all Enel Energia employees currently on gas-industry contracts.