700 jobs saved at Postalmarket

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The Italian mail order company, Postalmarket, was sold recently, following threats of closure. In January 1999, the new owner signed an agreement with trade unions which provides for a large-scale restructuring plan, the protection of many jobs, and a doubling of share capital, aimed at relaunching the company.

In 1998, the German-based distribution multinational, Otto Versand, decided to close down the Italian activities of its Postalmarket subsidiary, with up to 700 job losses (IT9812191N). After a long period of talks and workers' protests, the company was subsequently bought by the Italian industrialist, Eugenio Filograna. A restructuring agreement was signed by the new owner and the sectoral trade unions affiliated to Cgil, Cisl and Uil on 29 January 1999. The new owner intends to improve the company's mail-order sales activities by doubling its current share capital of ITL 7 billion, and to make important investments aimed at better meeting the market's needs.

The restructuring plan provides that 500 Postalmarket workers will, on a rotation basis, be placed on short-time working and receive "special short-time earnings compensation" (Cassa integrazione guadagni straordinaria, Cigs) (IT9802319F) for a two-year period. Another 120 workers who are close to retirement age will be put on "mobility" lists and will receive an incentive equal to six months' gross pay if they take early retirement.

Both workers and trade unions are reportedly very satisfied with the results of the agreement Angelo Tognoli of the Milan office of the Fisascat-Cisl union underlines the importance of a number of principles set out in the agreement: "the preservation of employment levels and the willingness to invest in the company's future". Moreover, Mr Tognoli appeared to be very confident about an improvement of the company's position: "in Italy, there is still room on the market for the mail-order sales sector," he declared.