International Industrial Relations in the ENI group

1. International Industrial Relations in the ENI group Dario Ilossi, FEMCA CISL, EWC Coordinator ETUC Conference Social Standards and Globalisation Turin, 27th November 2004 Dario Ilossi, November 2004

2. ENI and IIR: a pathway • 1995: EWC agreement • 1996: Health & safety European Observatory • 2001: agreement on training • 2002: Renewal of EWC agreement • 2002: International Industrial Relations & CSR agreement Dario Ilossi, November 2004

3. AGREEMENTS in 2002 and 2003:a remarcable improvement • EWC: increased role of the Select Committee • H & S Observatory: better operativeness • Training Pilot Project on interculturalism • IIR and CSR Agreement Dario Ilossi, November 2004

4. ENI IR Protocol, 2001basics and principles • Peculiar IR tradition • New needs, new IR system • running the change • Information,consultation • Choises shared as much as possible • Structured “participation” • a sort of “ Surveillance Board”: the joint Industrial Relation Committee Dario Ilossi, November 2004

5. ENI IR Protocol, 2001Attached agreements • Training and life-long learning • guidelines, joint programs • Environment, health & safety • Joint evaluation and programs • Staff shares ownership • Study on feasibility • International Industrial Relations Dario Ilossi, November 2004

6. ENI IR Protocol, 2001Attached agreement on IIR • Context: increasing ENI internationalization • Renewal of EWC agreement: more efficacy and role • European H & S Observatory: increase of activity • extra-European areas: basic standards, information & consultation Dario Ilossi, November 2004

7. ENI Agreement on International Industrial Relations and Corporate Social Responsability, 2002 • Contracting parties: Eni holding, italian sectoral Federations, ICEM • Dialog on social and economic fall-out of Eni presence and expansion • 4 parts: • observance of core standards • commitment to the Code of conduct • implementation procedures • final provisions Dario Ilossi, November 2004

8. ENI IIR and CSR Agreementcontent and procedures • “active” implementation of UN Declaration and ILO Conventions • commitment to optimize and implement the Group’s principles • implementation procedures: • internal monitoring • reciprocal notification of abnormal situations or violation, Eni action for eliminating anomalies Dario Ilossi, November 2004

9. ENI IIR and CSR Agreementcontent and procedures(2) • Implementation procedures (2): • parties may agree affermative programs • propagation of the Agreement • establishment of constructive IR with democratic Unions and workers’ representatives • annual meeting • economic-financial topics, future prospects at world level • development on IR, critical situations • H&S, CSR actions Dario Ilossi, November 2004

10. ENI to-day: some figures • 6th “major” energetic company • Market capitalization: >70 Euro Bln • 2003: • Business in more than 70 Countries • Approx. 76.000 workers worldwide • Turnover ab. 51,5 Euro Bln • Net profit ab. 5,6 Euro Bln • Privatized company (70%) Dario Ilossi, November 2004

11. ENI to-day:the structure + Polimeri Europa SpA (petrochemicals) Dario Ilossi, November 2004

12. ENI worldwide (2002) Dario Ilossi, November 2004

13. ENI Workforce as of 31.12.02 Dario Ilossi, November 2004

14. ENI WorkforceItaly and abroad Dario Ilossi, November 2004

15. Agreement in practicesome cases • Meeting 2003 • strategic plan 2003-2006 • BTC pipeline (Baku-Tbilisi-Ceyan) • supposed violation of OECD guidelines, ch. 5 • Dismissal of a worker, Brasil • Disinvestments/investments extra UE • Brasil • Romania Dario Ilossi, November 2004

16. Implementation of the Agreement weakness points • Limited commitment of the company • difficulties of HR communication, central vs. local • no specific programmes • Inadequacy of the Unions “network” • difficulties in local situation and Icem coordination • limited priorities to international affairs • Activities with other stakeholders • no Unions involvement Dario Ilossi, November 2004

17. Some remarks and questionsENI agreement: a schematic evaluation • a significant agreement • a “pionering” agreement • negotiated with Unions • International Federation recognised • 3 pillars: • fundamental rights, labour standards • internal Code of Practice • information consultation system • joining IR and CSR • but it needs improvements Dario Ilossi, November 2004

18. ENI : to improve the agreement • Principles: reference to the OECD guidelines on multinationals • Info & cons.: an enlarged presence • sensibilization & training programmes • pro-active measures for IR • cooperation with other stakeholders Dario Ilossi, November 2004

19. ENI : to improve the agreement (2) • Improvement of Operational structure: • monitoring and proposals • management of critical situations • concrete support • networks (Company and Unions) • affirmative programs (IR, H&S, etc.) • Next meeting on 3rd December Dario Ilossi, November 2004

20. Some remarks and questionsfrom ENI agreement experience (1) • Complexity and dynamics of the companies • Hundreds of subsidiaries, consortiums, etc. • Temporary business, contract/agency work • EWC role • promotion, New Member/Accession States • but distinct scope and mission • Company- or sectoral-level agreements • not alternative level • word-level sectoral difficulties (ICEM case) Dario Ilossi, November 2004

21. Some remarks and questionsfrom ENI agreement experience (2) • Relevance of company culture and identity • But now: extensive need of “moral re-entry” • New legitimation for enterprise action • Making wealth is not sufficient • Rules and ethic/social practice • Link between social cohesion and competitiveness • Sensitive in Europe and “Euro-centric” companies • Corporate Social Responsability • Sustainable development • Strategic approach for enterprises Dario Ilossi, November 2004