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Workforce reduction agreement reached at ExxonMobil

In January 2004, trade unions and management at the Italian subsidiaries of the US-based ExxonMobil oil group signed an agreement on workforce reductions. The deal reduces substantially the number of redundancies earlier proposed by management, provides support to redundant workers and offers financial incentives to workers who leave the company voluntarily.
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In January 2004, trade unions and management at the Italian subsidiaries of the US-based ExxonMobil oil group signed an agreement on workforce reductions. The deal reduces substantially the number of redundancies earlier proposed by management, provides support to redundant workers and offers financial incentives to workers who leave the company voluntarily.

The US-based ExxonMobil Corporation, the world largest oil company, has three subsidiaries in Italy - Esso Italiana Srl, ExxonMobil Mediterranea Srl (which operates in Italy and other Mediterranean countries) and Sarpom Spa. It has been present in Italy for more than a century and currently has refining operations, storage plants and more than 3,000 petrol stations, with a total workforce of more than 2,000 employees. Following the recent privatisation of the natural gas distribution network in Italy, ExxonMobil has announced its intention to expand investment in this sector.

In November 2003, the three ExxonMobil companies in Italy presented an industrial plan which included 460 redundancies, mostly in the refining sector: 39 at ExxonMobil Mediterranea Srl; 380 at Esso Italiana Srl (involving blue- and white-collar workers and middle managers), mostly located in Rome (146), Augusta-Sicily (108) and Vado Ligure-Luguria (17); and 41 at Sarpom Spa, which manages the refinery at Trecanate (Novara).

On 21 January 2004, representatives of the three companies and of Filcem, Femca and Uilcem- the sectoral trade union organisations affiliated to the General Confederation of Italian Workers (Confederazione Generale Italiana del Lavoro, Cgil), the Italian Confederation of Workers' Unions (Confederazione Italiana Sindacato Lavoratori, Cisl) and the Union of Italian Workers (Unione Italiana del Lavoro, Uil) respectively - signed an agreement on the procedure for the workforce reduction.

The agreement reduces the number of redundant workers from 460 to 346: 32 at ExxonMobil Mediterranea Srl; 283 at Esso Italiana Srl; and 31 at Sarpon Spa. The workers concerned will gradually be placed on a 'mobility' scheme (IT0311306T) according to an agreed timetable, with the procedure to be completed by 31 December 2005. The workers to be placed on the mobility scheme will be chosen from among those who meet the criteria to receive a pension or will achieve them during the mobility period, or from among volunteers. Workers will also be able to benefit from an 'internal mobility' scheme which provides for specific training courses, or to have access to an outplacement service. Workers who agree to leave the company on a voluntary basis will receive a payment equivalent to between 1.5 months' and 26 months' pay, depending on their age. The parties to the agreement will meet at national level, at the end of January each year, to monitor the ExxonMobil reorganisation programme. In the case of particular needs arising, the parties may also organise meetings at local level during the year.

The signatories are very satisfied with the agreement. According to Sergio Gigli, the confederal secretary of Femca-Cisl, the agreement should enable the company to recover competitiveness and efficiency and to consolidate its role in Italy. Mr Gigli also underlined the major reduction in the number of redundancies thanks to the active involvement of the workers' representatives during the negotiations.

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