Eni signs agreement on transnational industrial relations and social responsibility

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In November 2002, Eni, the Italian-based energy company, became the latest multinational to conclude a global agreement on corporate social responsibility and industrial relations. The accord, signed by Italian and international trade union organisations, lays down a number of principles relating to workers' rights and other social responsibility matters for the group's 70,000 workers worldwide, and establishes a world-level union-management information and consultation forum.

On 29 November 2002, Eni SpA signed an agreement on 'industrial relations at transnational level and corporate social responsibility' with Italian and international trade union organisations.

Eni is an Italian-owned integrated energy multinational operating in the oil, natural gas, electricity generation, petrochemicals, engineering and oilfield services sectors through its various divisions and companies. It was established by the Italian state in 1953 to promote and develop a national energy strategy under the leadership of Enrico Mattei, a manager who opposed the power of the US-owned multinationals in the sector and conducted a policy of collaboration with oil producing countries.

In 1992 Eni became a joint stock company and in 1995 it began the process of privatisation. Currently, the Italian government (Ministry of Economy and Finance) is the largest single shareholder (at 30.33%) while the remaining shares have been placed on the national and international market. At present, 43.1% of Eni's share capital is held by Italian shareholders, 11.54% by other European shareholders and 6.57% by North American shareholders. Eni has operations in 67 countries and employs about 70,000 people (40,000 in Italy and 30,000 abroad). One of the world's biggest energy companies, its 2001 turnover amounted to around EUR 49 billion.

The November 2002 agreement on transnational industrial relations and corporate social responsibility was signed on the trade union side by the Italian chemicals sector unions - the Italian Federation of Chemicals Workers (Federazione Italiana Lavoratori Chimici, Filcea) affiliated to the General Confederation of Italian Workers (Confederazione Generale Italiana del Lavoro, Cgil), the Energy, Chemicals and Allied Industries Federation (Federazione energia, moda, chimica e affini, Femca) affiliated to the Italian Confederation of Workers’ Unions (Confederazione Italiana Sindacati lavoratori, Cisl) and the Union of Italian Chemicals, Energy and Manufacturing Workers (Unione Italiana Lavoratori della Chimica dell'Energia e del Manifatturiero, Uilcem) affiliated to the Union of Italian Workers (Unione Italiana del Lavoro, Uil) - and by the global union federation for the sector, the International Federation of Chemical, Energy, Mine and General Workers' Unions (ICEM). Given the increasing internationalisation of the group, the new agreement seeks to complete at global level Eni's innovative industrial relations framework, which is based in Italy on a protocol signed in June 2001 by management and national unions, and at European level on the European Works Council, the agreement on which was renewed in 2001.

The new accord states parties' agreement on the need to support 'a model of company growth able to combine the creation of value and innovation with attention to human rights, appropriate labour and safety standards, quality of life and eco-compatible development'.

The agreement is based on the principles laid down in the United Nations Universal Declaration of Human Rights and on the main International Labour Organisation Conventions. In particular, the agreement reiterates Eni's commitment to observing for all its workers, in Italy and abroad, the following:

• the right to freedom of association and collective bargaining (in accordance with ILO Conventions No. 87 and No. 98);

• the prohibition of forced labour ( ILO Conventions No. 29 and No. 105);

• the prohibition of child labour (ILO Conventions No. 138 and No. 182);

• non-discrimination in employment (ILO Conventions No. 100 and No. 111);

• non-discrimination against workers' representatives (ILO Convention No. 135); and

• a constant effort to improve health and safety conditions at the workplace.

The agreement also stresses the principles set out in Eni's existing 'code of practice', notably:

• business ethics (honesty, integrity and full respect of the law);

• respect for 'stakeholders' (employees, shareholders, clients, suppliers, community, etc);

• workers' protection and equal opportunities;

• 'valorisation of professional capacities';

• respect of diversity (in terms of culture, religion, traditions, ethnic diversity etc);

• cooperation - ie contributing in a concrete way to promoting quality of life and socio-economic development in the communities where Eni operates;

• health and safety protection; and

• environment protection.

Industrial relations within Eni will take into account 'the various socio-economic contexts where Eni is present'. Eni and all its companies will maintain 'constructive relations' with trade union organisations and local workers' representatives.

Eni will monitor the application of the agreement's principles and will directly intervene in the event of violations or irregular situations. Trade union organisations will be involved at local level through local representatives or, in cases where there are no representatives, through the organisations which signed the agreement. The contents of the agreement and examples of good practice will be disseminated through information, training and research activities

Company representatives will meet the signatory trade union organisations in May each year for information, consultation and dialogue. During the meeting, Eni will present information on: the situation of the group at world level; the performance and prospects of its operations; the industrial relations situation in the various countries and any problems arising; and the company's actions and programmes in the area of corporate social responsibility, including heath and safety at work.

The agreement must not substitute for local industrial relations practices, and the parties recognise the principle that problems between workers and the company 'should be resolved at the level closest to the workplace'.

Both Eni and the trade unions welcomed the agreement. Eni stated that 'the agreement is an act of courage on part of the company, which is not limited to signing the agreement but aims to put into practice the commitments agreed with the trade unions'. Antonio Scalfaro, the president of Femca Cisl, said that 'this is a good agreement which, together with those which have already been signed with other multinational in the sector (Statoil[EU0103201F], Endesa[EU0202203F] and Freudenberg[EU0008267F]), contributes to the European system of industrial relations and represents a reference point at world level'. Mr Scalfaro also stressed that the Eni agreement on transnational industrial relations and corporate social responsibility is one of the first such agreements signed by an Italian multinational company. Eni has joined a list of around 25 multinationals from around the world which have signed such 'global' agreements.