Telecom Italia (TIM) signed an agreement with trade unions to achieve savings equivalent to 4,500 layoffs through solidarity measures, Reuters reported.
Solidarity measures, which will start from next June 19, 2018 and will last 12 months, usually entail employees cutting their working hours for an equivalent pay reduction, resulting into savings for telecom operators.
TIM said the measures agreed would affect 30,000 Telecom Italia workers for 12 months.
Presenting Telecom Italia’s new business plan and strategy in May CEO Amos Genish told trade unions that telecom operator needed to cut around 5,000 jobs and would do so through early retirements.
TIM said today’s agreement provides for the vertical reduction of working hours for 26 days of solidarity throughout the year (10 percent time). TIM will target all staff except the people involved in main functions such as business continuity, digitization and innovation processes, said TIM managing director Amos Genish.
The company said it is also committed to manage the 4,500 redundancies declared by non-traumatic tools for workers. TIM workers who accrue the minimum requirements for retirement by December 31, 2025 will be able to leave work earlier on a voluntary basis.
