The Piaggio Group acknowledges the role of trade union organisations and workers' representatives and is committed to establishing relations with them focused on attention, engagement and a common understanding; in fact ongoing dialogue is considered as fundamental for finding the best solutions to specific company needs.

The Group’s approach lies in involving workers and their representatives in the pursuit of company objectives, establishing a continuous dialogue with them. The solutions and conduct adopted in various countries where the Group operates are in line with the social and institutional context, but are always consistent with the fundamental principles and overall needs of the Group.

Piaggio complies with the labour legislation of countries where it operates.

Permanent employees working at the Group's production companies have 100% salary and welfare cover, in accordance with law and collective bargaining agreements.

Italy

During 2021, dialogue and discussion with Trade Unions and with workers' representatives continued with the aim of seeking shared solutions in the context of an international scenario that has been characterised by the ongoing COVID-19 pandemic crisis and, also following repercussions due to this health emergency, by phenomena that have had negative impacts on the supply of production systems in terms of the service level of transport and availability of raw materials; these situations were managed through the use of the Ordinary Redundancy Fund.

On the other hand, the excellent response from the markets to the Piaggio Group's products, together with the expectations of growth in demand for two-wheelers expected for 2022, led to the signing of a trade union agreement at the end of November 2021 which launched a fixed-term recruitment plan for a maximum number of 580 people, to strengthen the workforce of the group's plants in Pontedera (Pisa), Mandello del Lario (Lecco) and Scorzè (Venice) as early as the first quarter of 2022.

Under the agreements signed with the trade unions, workers who have already had experience at Piaggio over the last few years will be hired, to avoid wasting skills acquired and at the same time allow for a more effective response to changing market trends.

In addition, as regards the Pontedera site, 50 people will be recruited on an indefinite contract by March 2022, and for the Moto Guzzi production hub, vertical part-time workers and some of the leasing1 staff at the Company will switch to permanent employment.

As far as the COVID-19 health crisis is concerned, discussions continued within the framework of the company’s Control Committees, set up at individual sites, to verify the application of rules to combat and contain the spread of the COVID-19 virus in the workplace, and discuss and identify suitable tools to deal with pandemic emergency scenarios. These Committees were attended by the company trade union representatives and workers' safety representatives (RLS).

With reference to collective bargaining, the National Collective Bargaining Agreement (CCNL) for workers in the private metalworking and plant installation sectors was confirmed as valid throughout Italy. In February 2021, an agreement was reached to renew the CCNL, which had expired at the end of 2019.

In December 2019, an agreement with local trade unions and trade union representatives was signed at the Ministry of Labour and Social Policies, to continue the Special Redundancy Fund for reorganisation only at the Scorzè site from 9 January 2020 to 8 January 2021; this Fund, temporarily suspended, after the Ordinary Redundancy Fund had been used, was initially restarted for the period from 1 July 2021 to 9 April 2022. Finally, following a company agreement signed on 17 December 2021, the Parties agreed to the early termination of the company reorganisation programme on 31 December 2021.

The number of hours lost due to strikes in 2021 increased overall, but this is attributable to causes linked to general/category strikes (the number of hours not worked in this respect went up from 1,596 in 2020 to 9,919 in 2021), while the number of hours lost due to causes linked to company micro-conflicts showed a significant decrease (-18%) compared to the previous year (15,816 in 2020 and 12,920 in 2021).

It should be noted, however, that the figures regarding micro-conflicts, in absolute terms, are negligible and are attributable solely to initiatives of a minority of trade union representatives.  

All corporate micro-conflict events referred to the Pontedera site.

The table below provides a summary of the hours lost due to strikes in the last three years at the company's sites in Italy:

hours lost due to strikes in the last three years at the company's sites in Italy

A structured company welfare system has been established in Italy, with services that aim to increase the well-being of employees and their families, in economic and social terms.

In general, a supplementary health care fund (Métasalute) for the engineering sector has been in place since the end of 2011, based on a national trade union agreement. Membership of the plan has been automatic for all Group employees since October 2017.

The scheme also includes health benefits/services for employees:

  • at Pontedera, the company medical centre for employees has specialists (an optician, an orthopaedic specialist, a lung specialist, a dermatologist and an ENT specialist) for consultations;
  • in Noale/Scorzè and Mandello del Lario paid leave is provided for all employees for specialist visits outside the Company and for clinical analysis, as well medical test/examination monitoring.

All sites also offer employees flu vaccinations free of charge.

1 Staff leasing means provision for an indefinite period

2 For the calculation of the %, only the hours of production staff were considered.

India

In India, trade unions have a two-tier structure: one at company level and the other at local/area level; this structure is also replicated at the Indian subsidiary, where the trade union system comprises a company trade union committee with Piaggio worker representatives, and a central trade union committee, which is the highest hierarchical level, with members selected by the trade union. The company union committee consists of 8 members elected annually by the workers.

At the Indian subsidiary, a collective company agreement is periodically discussed and signed, which was renewed in March 2018 valid for four years.

In 2021, the impact of the pandemic on the business and on regulations called for considerable effort to adapt production to the complex and changing scenario. This effort was facilitated by constructive dialogue with trade union representatives. In this regard, there were no strikes in 2021.

In 2021, the main industrial relations activities focused on:

  • maintaining the productivity levels of workers defined by the company agreement. Based on these indicators, levels of manpower connected with varying levels of production were established;
  • a further increase in flexibility also made necessary by the changing pandemic scenario and achieved, in addition to the already planned and regulated use of temporary flexible labour, through specific agreements with trade union representatives. These agreements governed attendance and the shift schedule also in order to adapt them to operating methods ensuring a necessary level of social distancing;
  • maintaining and improving positive and cooperative relations with workers and trade unions;
  • guaranteeing full compliance with labour legislation (for example in the field of health care following the spread of COVID-19, the use of new schemes for the administration and training of temporary workers, the prevention of sexual harassment in the workplace etc.);

employee engagement to improve the business climate and, accordingly, employee motivation. In line with this approach, Piaggio organised numerous activities to engage its employees, including health check-ups and prevention, initiatives to raise awareness of health and safety, the purchase of books and uniforms for the children of employees.

Vietnam

In Vietnam, trade union representatives at a company level (selected by a company trade union committee) are tasked with protecting employees, helping them to understand aspects concerning labour regulations and company policies, and providing economic support for some company initiatives benefiting employees. 

In particular, the current Trade Union Committee, elected in February 2019 and comprising 15 members who will remain in office for 3 years, made an excellent contribution in 2021, having sponsored and assisted the company in a number of initiatives to bolster employee motivation.

In 2021, due to the COVID-19 pandemic, activities focused on preventing and limiting infection.

In particular, in addition to specific health-related initiatives (delivery of masks to all employees, availability of sanitiser, particular attention paid to periodic cleaning of the workplace), changes were introduced to regulate attendance and shift schedules, in order to guarantee changes to operating methods to ensure necessary social distancing (alternating shifts, smart working).

No strikes took place in 2021. 

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