Industrial relations

In 2012, the financial and economic crisis continued to affect Italy and numerous European countries, causing a further downturn on European markets as regards motor vehicles; consequently, industrial relations dealt with various situations at Company sites arising from the need to adapt production schedules to industry trends.
As regards the site at Pontedera, a procedure for the mobility of white collars and middle management staff, which began in 2011 with the signing of a trade union agreement, was completed in March.
Employment commitments of the supplementary trade union agreement of 2009 were complied with, with some 130 workers being employed with a part-time cyclical, vertical contract and the change-over of another 130 part-time contracts to full-time contracts.
The Wage Guarantee Fund had to be used, due to a continuing decline in production volumes (first quarter of 2012; August, October, November and December).
In April 2012, following the award of the competitive tender, Piaggio signed an agreement to purchase the “Tecnocontrol” company site, so it now has its own aluminium engine components processing procedure; at the end of 2011, Piaggio had been assigned receivership and therefore the temporary management of production activities of the insolvent supplier. Following the acquisition, 90 staff were employed on an open-ended contract. Various parts of the 2009 supplementary trade union agreement were dealt with, including the Results Bonus (final figures for 2011 and 2012 objectives).

A trade union agreement was entered into, in January 2012, for the Noale and Scorzè sites. Based on the agreement, measures were discussed to guarantee the economic and financial sustainability of the Company's investment plan, through major cost reductions and actual recovery of the technical structure's efficiency and productivity, and manufacturing activities.
The staff restructuring programme at the Noale site had to be continued (whilst retaining two-wheeler sector know-how) and consequently, total staff numbers at the site were reduced, also considering the ongoing crisis which has led to a decrease in consumption and sales volumes. Procedures to adopt to achieve these objectives were jointly agreed on: a mobility procedure for the Noale site (45 employees) and solidarity contracts for both Noale and Aprilia Racing, to immediately reduce overheads and also effectively and promptly respond to trends of activities and their distribution at different times of the year. transfers to other group sites with greater professional opportunities, also with a view to maintaining and developing Group know how; identification of new local employment opportunities, also with the support of dedicated, qualified external structures assisted by specific training activities. All measures were adopted, downsizing staff by 24 units and gearing performance to different volumes of activities.
At the Scorzè site, which has a production mission that has been confirmed, the use of solidarity contracts continued in 2012, with a reduction in working hours for all site employees, effectively bringing work in line with volumes scheduled on a monthly basis, to meet market requests.
The Italian Ministry for Employment and Social Policies authorised the use of solidarity contracts at these sites (decree no. 66288 of 05/06/2012 for Scorzè; decree no. 66574 of 21/06/2012 for Noale; decree no. 66276 of 05/06/2012 for Aprilia Racing).

As regards the Moto Guzzi production site, final production volumes in 2012 were fully aligned with scheduled volumes and higher than those of the previous year, also due to the production start-up of the new Moto Guzzi V7 range in March 2012.
Work volumes fully absorbed available human resources and 30 supply contracts were also required.

In 2012, the trend of hours lost through industrial action increased in Italy, following a micro-conflict caused by a minority active in one trade union organisation. This increase, compared to 2011, also refers to national strikes organised by one trade union organisation, against some employment policies.

Following the plan signed in July 2011 between the Spanish Company Nacional Motor and the Martorelles (Barcelona) Piaggio Branch and government representatives concerning the Expediente de Regulación de Empleo (employment regulations plan), activities carried out at these sites were included in the restructuring programme. In particular, in the first few months of 2012, some Derbi products were moved from Martorelles to Scorzè.

As regards the Indian subsidiary, negotiations with trade unions began at the end of 2012 to renew workers' wage agreements.

As regards Piaggio Vietnam, the trend of industrial relations was normal.