Company-level deal at Barilla introduces new working time arrangements

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An agreement signed in September 1998 at the Italian food group, Barilla, provides for the introduction of extra shifts on Sunday and for monitoring by trade unions of the use of overtime. Changes in work organisation are accompanied by greater priority on the development of qualifications and skills. The deal confirms the trend towards more participatory industrial relations in some companies.

The food sector in Italy is particularly exposed to international competition. It is also characterised by the strong presence of multinational companies, which during the 1990s have consolidated their position in the Italian market through takeovers. Growing competition has compelled numerous Italian firms to undertake organisational and managerial change. Besides curbing costs, one of the goals of this change is to achieve increased flexibility. This is a crucial issue in a sector which has to cope not only with the seasonal nature of much of its production but also with the need for firms rapidly to produce goods, most of which have short shelf-lives.

It is in this context that company-level contracts have been renewed in the food sector in the course of 1998 (IT9807232F). Following agreements at Galbani (Danone group) and Nestlè, the company-level contract at Barilla for the four-year period 1999-2002 was signed on 24 September 1998. Barilla is Italy's largest food group.

The Barilla agreement

One of the most innovative aspects of the Barilla agreement concerns the management of working time. In order to achieve better plant utilisation, the deal provides for the use of extra shifts on Sunday, up to a maximum of five Sundays per worker per year in all the Barilla group factories. There are pay increases for the workers involved, with the option of taking days off in lieu. Sunday work schedules will be defined in individual plants by negotiation with the company-level employee representation body, the Rsu. To date, Sunday work has been used on an experimental basis in only a few Barilla factories.

Still on the subject of working time, the contract makes it possible for the trade unions to monitor the use of overtime, verifying in which areas of production it is most frequently used and the reasons why. The aim is to ensure that overtime is utilised only when absolutely necessary. In cases where overtime it is found to be more structural in nature, employment creation may be considered.

On work organisation, the agreement introduces a number of changes along the lines set out in the previous company-level accord of 1994. One of the most important aspects is the redefinition of job descriptions consequent on the introduction of an organisational model which gives priority to work in groups and by work area. This requires the development of qualifications and skills in two domains in particular - versatility (the ability to perform several job tasks) and multifunctionality (the ability also to carry out quality control, plant maintenance, and process management). Within six months of signing the company-level agreement, management and unions should hold talks in order to define the new job classification scheme.

As happened at Galbani and Nestlè, the Barilla agreement enhances the role of the group-level "Rsu coordination committee" (Coordinamento delle Rsu) which was introduced by the 1994 company-level contract, with a view to creating more participatory industrial relations. The members of the Rsu coordination committee will in future attend joint training days on subjects such as the characteristics and development of the food industry in Italy and the world, or Barilla's competitive position and future prospects. Moreover, on request of one of the parties, a delegation from the coordination committee may have meetings with company management on themes such as the group's industrial strategies, productivity trends and investments, and the impact on employment of technological and/or production innovations or restructuring.

Finally, the agreement makes changes to the criteria used to award performance bonuses, although these are still tied to the achievement of targets. The reference parameters will be the company's profitability and quality and productivity indicators, the latter at the plant level. Between 1999 and 2002, the period covered by the agreement, if targets have been completely fulfilled, the performance bonus will be ITL 2.5 million per worker per year.

Commentary

One of the most significant features of the Barilla agreement is its introduction of extra shifts on Sunday. The management of working time is one of the principal means by which food firms are able to adapt production to trends in demand. Since the end of the 1980s, a number of experiments in working hours have been introduced, especially in large firms. Also important is the provision for the monitoring by the unions of the company's use of overtime. This has always been one of the main instruments used by Italian firms to achieve greater flexibility. Consequently, the management of overtime is a crucial issue in negotiations between the social partners.

The Barilla agreement confirms that in companies oriented to more participatory industrial relations, it is possible to achieve flexibility by negotiation and to introduce innovative solutions on matters such as working hours, where the positions of employers and unions usually conflict. (Marco Trentini, Ires Lombardia)