The privatisation of the Italian electric utility, Enel, began at the end of October 1999. On 30 September 1999, the Ministry of Industry and trade unions signed an agreement setting out binding employment and industrial relations criteria for the privatisation of the company, which may set an example for future privatisations and liberalisation in Italy.
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The privatisation of the Italian electric utility, Enel, began at the end of October 1999. On 30 September 1999, the Ministry of Industry and trade unions signed an agreement setting out binding employment and industrial relations criteria for the privatisation of the company, which may set an example for future privatisations and liberalisation in Italy.
The state-owned electricity generation and distribution company, Enel (Ente nazionale per l'energia elettrica) controls electrical power stations and distribution networks all over Italy. It was founded in 1963 in the wake of nationalisation by the centre-left government of the period, and it was later transformed in a joint-stock company where the state is the major share-holder. Recently, the government decided to sell about 30% of the capital shares, and privatisation started at the end of October 1999.
Besides the privatisation process, the production and distribution of electrical energy will be also liberalised through the sale of a significant proportion of the power stations owned by Enel (IT9811188N). In order to deal with the problems resulting from the privatisation and the liberalisation of the company, the sectoral trade unions affiliated to the Cgil, Cisl and Uil confederations - Fnle, Flaei e Uilcem- signed an agreement with the Ministry of Industry on 30 September 1999. The most innovative aspect of the agreement is the so-called "social clause" (clausola sociale): the general employment and industrial relations criteria that the future purchasers of Enel facilities will have to respect.
The "social clause" provides that:
buyers will not able to sell the company or part of the company for at least three years;
current collective bargaining arrangements will have to be respected for at least three years and in any case until the signature of a new national collective agreement, while present healthcare and complementary pension arrangements will also have to be respected;
employment levels will have to be maintained at current levels until 31 December 2004. The new owner will be able to deal with possible surplus staff through agreements negotiated with the unions aimed at requalifying or outplacing redundant workers; and
the Ministry of Industry will intervene directly if the "social clause" is not respected.
Furthermore, the Ministry commits itself to monitoring permanently developments in the sector and the situation in the regions most involved by this reorganisation process, through local meetings between Enel, local institutions and trade union representatives.
The agreement also underlines workers' participation in the company's shares. The government, before putting the company's shares on sale, will define ways of helping employees who wish to purchase shares.
Trade unions were satisfied with the outcomes of the agreement. Giorgio Santini, confederal secretary of Cisl, underlined the active role that trade unions are playing in the privatisation and liberalisation process of Enel, which is in line with EU legislation.
Eurofound recommends citing this publication in the following way.
Eurofound (1999), Social clause agreed for privatisation of Enel, article.
