In December 1999, Italian metalworkers' trade unions and the German-owned car component manufacturer, Zf Marine, located in Padova, signed an innovative agreement introducing extremely flexible working time, linked to productivity and market goals.
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In December 1999, Italian metalworkers' trade unions and the German-owned car component manufacturer, Zf Marine, located in Padova, signed an innovative agreement introducing extremely flexible working time, linked to productivity and market goals.
On 28 December 1999, the provincial organisations of the main metalworkers' trade unions (Fim-Cisl, Fiom-Cgil and Uilm-Uil) and Zf Marine, a German-based multinational company that supplies car components (mainly mechanical transmissions) signed an innovative agreement introducing very flexible working time arrangements at the firm's Padova plant. The deal followed lengthy negotiations aimed at tackling the sudden and unforeseeable intense periods of activity that the company experiences. The agreement is experimental and the results will be assessed at the end of 2000.
The agreement divides production into two main phases - periods of most intense activity and periods of less intense activity - with different possibilities of organising working time arrangements in each phase. Working time will be increased or decreased according to the volume of production, between a maximum of 47 weekly hours an a minimum of 29. During the periods of most intense activity, working time will be increased above contractual working time by 100 hours, with similar reductions during periods of less intense activity. The hours will be distributed according to a dozen different working time arrangements.
During periods of most intense activity, when working time will be longer than contractual hours, it will be organised as follows:
non-shiftworkers will have to work five hours per week more than usual for 20 weeks. They will be free to decide wether to work one more hour a day or five hours more on Saturdays;
shiftworkers in a two-shift system will have to work five to seven hours per week more than usual for 16 weeks. They will have to work seven hours on Saturday mornings when on the first shift and one hour more every weekday (from 22.00 to 23.00) when on the second shift; and
shiftworkers in a three-shift system (six hours per day, six days per week) will have to work up to 66 extra hours over 18 weeks. The workers involved will have to work on Saturdays - from 06.00 to 13.00 when on the first shift, from 13.00 to 19.00 when on the second shift, and from 19.00 to 02.00 when on the third shift.
Working time in the periods of less intense activity will be organised as follows:
non-shiftworkers will work 35 hours per week - seven hours per day, five days a week, from Monday to Friday. Alternatively, workers will be free to decide to work a 36-hour week - nine hours per day, four days per week. On the whole, workers will work 100-105 hours less than usual during this period;
shiftworkers in a two-shift system will work an average of 35 hours per week, from 06.00 to 14.00 five days per week when on the first shift, and from 14.00 to 20.00 five days per week when on the second shift. Alternatively, workers may choose to work from 06.00 to 14.00 five days per week when on the first shift and, when on the second shift, from 14.00 to 22.00 on Monday to Wednesday and from 14.00. to 19.30 on Thursday, with Friday off. On the whole, these shiftworkers will work 96-100 hours less than usual during this period; and
shiftworkers in a three-shift system (six hours per day, six days per week) will work 66-70 hours less than usual during this period. The first shift will involve working from 06.00 to 12.30 on Monday to Friday, the second shift will run from 12.30 to 19.00 on Monday to Friday, and the third shift from 19.00 to 01.00, Monday to Friday. The employees concerned will not have to work on Saturdays.
The distribution of working time will be decided, on the basis of the company's productive perspectives, every two years in agreement with the trade unions. The hours worked beyond normal working time during the period of most intense activity will attract premium rates of pay, as follows:
from 16.30 to 19.00 - 15%;
from 19.00 to 22.00 - 20%;
from 22.00 to 23.00 - 40%; and
from 06.00 to 13.00 on Saturdays - 25%.
All workers are entitled to an allowance of ITL 1 million. They will also receive a bonus for each day of attendance.
The agreement also introduces a very important and innovative element in the context of the Italian industrial relations system: the company, according to the agreement, will no longer apply the sector's collectively agreed regulations on overtime work.
The agreement provides for a guarantee clause. If annual working time is exceeded (1,816 hours for non-shiftworkers, 1,696 hours for shiftworkers in a two-shift system and 1,528 hours for shiftworkers in a three-shift system), the extra hours will be compensated in December each year with a premium of 150% on top of the normal premia (as mentioned above). If, on the contrary, annual working time is less than the negotiated level, the workers will be compensated for the lost remuneration, with 50% of the shortfall in hours compensated with paid holidays or leaves and the other 50% paid by the company.
Gigi Copiello, secretary general of Fim-Cisl's Veneto organisation, considers the agreement to be "an alternative to the other ways of achieving flexibility: overtime and temporary work". Zf Marine too is satisfied with the agreement. Paolo Buratto, responsible for human resources at the company, said that "this working time arrangement allows activity to be optimised."
Eurofound recommends citing this publication in the following way.
Eurofound (2000), Flexible working time introduced at Zf Marine in Padova, article.
