Industrial relations

In 2013, the economic and financial scenario was still highly critical at a national and European level, with a continuing downturn on motor vehicle and commercial vehicle markets. In Italy, in particular, consumer spending stagnated and sales of all two-wheeler products and commercial vehicles 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 (Decree no. 75138 of 12 August 2013) covering all activities and employees (blue collars, white collars and middle managers), with the exception of two-wheeler (engines and vehicles) production operators. Subsequently, with the considerable slowdown in production activities and use of the Temporary Redundancy Fund in the last three months of the year, a new agreement was signed with the trade unions to apply the solidarity contract to the latter segment as well, from December 2013 onwards. The agreement extends the solidarity contract already underway for the production of commercial vehicles and for staff/technical and administrative activities, for a further 12 months.
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. The different trade union organisations adopted different positions during the year; 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. Trade union negotiations never commenced.
In April, elections were held to elect new trade union representatives and workers' representatives.
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 was extended throughout 2013, so that volumes could 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.
All measures were adopted, downsizing staff by 32 units in 2013 and gearing performance to different volumes of activities. The Italian Ministry for Employment and Social Policies authorised the use of solidarity contracts at these sites (Decree no. 76009 of 04 October 2013 for Noale; Decree no. 76002 of 04 October 2013 for Scorzè).

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.

In 2013, in Italy, the trend for hours lost through industrial action improved considerably compared to 2012, in terms of the number of hours lost (from 38,911 to 10,265), and as a percentage of hours worked at the sites (from 1.68% to 0.50%). 

In March 2013, the Spanish company Nacional Motor stopped all activities, fully implementing the E.R.E. (Expediente de Regulación de Empleo - Employment regulations plan), shared with Government representatives and Trade Union Organisations. The personnel redundancy plan is now in the final stages (and will end by April 2014), while all production activities were transferred to the Scorzè site (Venice) in March 2013.

In 2013, activities of the Swiss Branch of Piaggio BV were transferred to the Pontedera site, with all employment contracts being terminated on the basis of a welfare plan agreed on with trade union organisations.

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 July, an agreement was signed to renew the company's collective labour agreement for permanent employees, which is valid for 4 years. The agreement includes a salary increase spread over 4 years based on an increase in productivity and flexibility geared to market demand. The improvement in productivity and efficiency has made it possible to reduce the number of temporary staff used.