Summary of the Electrolux group agreement in Italy by our correspondent Sabina Petrucci

Electrolux. Fim, Fiom and Uilm Present the New Group Supplementary Agreement

The National Secretariats of Fim-Cisl, Fiom-Cgil and Uilm-Uil have published the following notice.

On 16 January 2007 at the Industrial Association in Treviso, after two days of uninterrupted negotiations, a hypothesis was reached for the renewal of the Collective Enterprise Contract for employees of the Electrolux Italia group.

On 31 January and 1 and 2 February 2007 a referendum will be held in all the Italian factories of the Group for the approval of the proposed agreement.

In the next few days meetings of all the inter-union works councils (Rappresentanze Sindacali Unitarie or RSUs) will be held and general meetings of workers will be called to explain and discuss the contents of the proposed agreement with all employees.

The national Fim, Fiom and Uilm organizations, the local union branches and the National RSU Coordinating Committee for the Electrolux Italia group, who signed the proposed agreement, take a positive view of the substance of the agreement in that it is consistent with the claims made in July 2006 in the platform of demands approved by the Group's employees.

The proposed hypothesis is for a renewal of the company contract which expired in 2004. It is also viewed positively by the union delegation because it strengthens the role of the Italian factories of the Electrolux Group; it confirms and enhances the role of the RSUs and of collective bargaining in matters of working conditions and working time, thus addressing the problems of competitiveness and market flexibility; it redistributes to workers a part of the productivity growth they have achieved in recent years by increasing their pay, including monthly payments; it introduces as an experiment the possibility of agreeing ways to stagger summer holidays.

The most important points of the agreement are as follows:

1. The Electrolux Group commits to strengthening all its Italian manufacturing facilities by way of an investment plan covering processes and products and amounting to at least 80 million euros in the three-year period 2006-2008.

2. As to matters of working conditions and organization:

- repetitive jobs will be surveyed and assessed with a view to intervening to improve working conditions;

- each position will have its own description including information on the operations involved in each phase of the work;

- a Special Works Commission will be set up to propose organizational improvements and professional development pathways for employees.

3. On the question of employment, the proposal confirms that the open ended contract is the standard and fixes at a maximum of 16% the number of short-term or temporary contracts.

4. From 2007, as an experiment, it is agreed to manage the taking of summer holidays on a staggered or sliding basis.

This means keeping production going (i.e. not closing the factories) and guaranteeing workers three weeks of holidays between June and September, of which at least two are to be collective and continuous, in a manner to be defined at each factory by agreement between the parties.

Where it is agreed that part of the holiday entitlement may be arranged individually, the agreement introduces and regulates the worker's option to choose the period for that part of the holidays.

5. As to the question of flexible operation, it is agreed that overtime and/or extended hours over multiple weeks may be worked by a production unit up to a maximum of 64 hours per annum, in a manner to be stipulated in agreement with the RSUs.

In case of agreement, a flexibility premium of 2 euros is to be paid for each hour worked, or a maximum of 128 euros per annum.

(The demand in the platform was for 160 euros.)

6. On the question of wages:

- from1 February 2007, a separate productivity bonus of 78 euros per month before taxes is to be paid to all workers including those on short-term or temporary contracts (the demand in the platform was for 90 euros);

- a factory results bonus is to be introduced linked to quality, productivity and response to market demand, which will increase existing wages by up to 1,034 euros p.a. in 2007, rising to 1,174 euros p.a. in 2008, with monthly advances of 69 euros gross in 2007, rising to 78 euros gross in 2008;(the bonus is to be paid to all workers including in percentage short term and temporary contracts).

- the proposal confirms and modifies a results-related bonus linked to the overall profitability of the Group's manufacturing facilities in Italy, which may amount on average to 415 euros p.a. in 2007 and 2008.

(The platform demanded an increase in results-related bonuses of 600 euros p.a. The increase in the results-related bonus obtained in the agreement totals 400 euro p.a.)

- for 2006, the Boden bonus is increased to 899 euros p.a.; and in February 2007 all workers will receive an advance of 100 euros gross.

7. For non-EU workers hired on permanent contracts, the proposal confirms and improves the “family leave” facility that allows for absences from work of up to a maximum of 50 continuous calendar days.

8. A Commission for the “Reform of the Participatory System” is set up to enable the parties to negotiate the definition of a complete and detailed reform project by 31 December 2007.

9. The contract expires on 31 December 2008.

Now the final word is up to the employees of the Electrolux Group who, through the exercise of their right to vote, will decide upon the approval of the proposed agreement.

Rome, 17 January 2007