Industrial relations

In the first half of 2013, the economic and financial scenario was still highly critical at a national and European level, with a continuing downturn in two-wheeler and commercial vehicle markets. In Italy, in particular, consumer spending stagnated and sales of all two-wheeler products (scooters and motorcycles) decreased. Against this background, issues concerning falling volumes and staff activities at production sites in Italy and Europe were discussed with trade unions from the early months of the year onwards.

In February, a trade union agreement was signed for the Pontedera site, to start a one-year solidarity contract covering all activities and employees (blue collars, white collars and middle managers), with the exception of two-wheeler (engines and vehicles) production operators.
In April, 2012 bonus-related data were finalised, and considering the results achieved, no bonus settlement was awarded in addition to the advance already paid during the year. Strong contrasts among trade unions led to different positions and only one organisation officially submitted a delegation to renew the supplemented contract that had expired on 31 December 2011, but which is still current considering it is on an extended validity basis.
Procedures are underway to renew the trade union representatives and workers' safety representatives, who will be nominated in the first ten days of July.

A new trade union agreement was entered into, in January 2013, for the Noale and Scorzè sites. Based on the agreement, the parties are continuing the plan, already started in the 2011/2012 period, to guarantee the economic and financial sustainability of the Company's investment plan, with major cost reductions and a recovery of the technical structure's efficiency and productivity.
At the Noale site, activities continued to streamline staff and staff activities, with a new mobility procedure affecting 38 people. The solidarity contract at the Noale site will continue throughout 2013, so that volumes may be adjusted to demand.
The production strategy of the Scorzè site was confirmed, with the transfer (as from March 2013) of all production activities of the Martorelles site (Spain) which has been closed down.
Considering the ongoing downturn in the two-wheeler market and resulting production programmes, the solidarity contract which has been extended for a further 12 months, will be combined with a mobility procedure for 98 people, in order to restructure production staff to take account of the lower demand for vehicles.

As regards the Mandello del Lario production site, sales volumes increased in 2013, supported by the launch of the New California. As agreed on with trade unions, fixed-term contracts and flexible working hours were used for the production ramp-up.

During the first half of 2013, the number of hours lost through strikes fell considerably in Italy (by over 80%) and is mainly attributable to trade unions supporting the delegation to renew the level 2 supplemented contract.

In March 2013, the Spanish company Nacional Motor stopped all activities, implementing the E.R.E. (Expediente de Regulación de Empleo - Employment regulations plan), shared with Government representatives and Trade Union Organisations. Employment contracts are being terminated; the redundancy plan will end on 31 December 2013.

As regards Piaggio Vietnam, there are no significant trade union events or activities to report. In May 2013, the new Labour Code came into force, introducing some regulations for expectant mothers and maternity leave, temporary work and some changes to working hours and dismissal procedures. In January 2013, a law came into force changing the contributions payable by the company to trade unions, from 1% to 2% of the basic salary of each employee.

The Indian company Piaggio Vehicles Private Ltd. was affected by the general slowdown of the Indian economy. In the first half of the year it revised wage agreements, as was the case with other companies in the automotive industry. For this reason, there were some episodes of industrial unrest, but the situation is now coming to an end. The organisational work model of Piaggio Vehicles Private Ltd. is optimal, employing both permanent and temporary workers to ensure steady productivity levels.