Human resources and organisation

The management and development model of Snam Rete Gas is based on fundamental assumptions recognised within the group. These assumptions are focused on appreciating people, helping them develop in terms of performance, potential and motivation and developing and strengthening the skills in conjunction with clearly defining their objectives and responsibilities and acknowledging their merits.

The system for analysing performance and evaluating potential and individual skills, and the activities of involvement and participation through training and communication, strengthen the wealth shared in connection with the principles, values, expertise and conduct of those active in the organisation.

Workforce

With the integration of Italgas and Stogit, the workforce in service within the Snam Rete Gas group at 31 December 2009 was 6,187 people. The analysis per contractual category and per company included within the scope of consolidation is indicated in the following tables:

Contractual categories200720082009Change
Managers 62 65 121 56
Junior managers 255 265 493 228
Office workers 1,250 1,241 3,320 2,079
Labourers 790 774 2,253 1,479
2,357 2,345 6,187 3,842

Company200720082009Change
Snam Rete Gas S.p.A 2,270 2,252 2,254 2
GNL Italia S.p.A 87 93 87 (6)
Italgas S.p.A 2,965 2,965
Napoletanagas S.p.A 580 580
Stogit S.p.A 301 301
2,357 2,345 6,187 3,842

The personnel hired for unlimited duration is 96% of the total, while 145 people have an apprenticeship or trial contract. 51% of human resources are assigned to Northern Italy, 22% to Central and 27% to Southern Italy and Sicily. The newcomers of 2009, 168 people, were mostly university graduates (18%) and high school graduates (55%). At year end, university graduates accounted for 9.5% of the total while the high school graduates made up 50.3%.

The average age of the workforce of the group is 47 years and the average seniority of service is about 22 years.

Distribution of Personnel by Geographic Region : North - 3,157, Central - 1,366, South and Sicily - 1,664Distribution of Personnel by Age Category

Organisation

In 2009 the main occurrence impacting the organisation was the start, in the second half of the year, of the programme for integrating the structures and processes of the Snam Rete Gas group as a result of the acquisition of Italgas and Stogit (Energies Programme).

This programme, which will produce results starting in 2010, has the objective, in relation to the business organisation, of achieving optimum governance in the processes of direction and control and revision of the operational structure of the group by centralising staff functions and work activities shared by the companies as well as identifying and realising opportunities for improving the processes of business operations.

Governance of the programme, which has directly involved about 300 people, is performed by an articulated structure that includes: (i) a Steering Committee, with participation by the CEOs of the group’s companies; (ii) a Programme Manager; (iii) 5 people in charge of the design areas; (iv) 26 people in charge of the “Operational Worksites.”

Involvement and Participation Initiatives

The process of integrating Snam Rete Gas, GNL Italia, Italgas and Stogit is certainly the activity that characterised 2009 in terms of resources involved and organisational efforts. Within the scope of the “Energies” project, new channels and tools of communications were tried for disseminating information in a clear, transparent and timely manner: a shared mix of video news, hardcopy newsletters and intranet platforms enabled everyone in the business to be informed about the process in progress, with the ability to recognise the “Energies” logo as a shared message of aggregation, the first step for building a shared culture.

The entire population of managers was repeatedly involved in briefings with the top management with the aim of understanding and sharing information on company acquisitions carried out during 2009. Plans were also made for training and communications to promote understanding and sharing on the part of management in the strategic design and guidelines of the business, along with the resulting reorientation of managerial conduct and roles.

Besides the initiatives connected with the energies programme, the communications activities strengthened during the course of the recent years were continued: The constant updating and improvement of the functionality of the website of the business, also with a view to the shared platform of the group, the execution of communications initiatives connected with company projects and events and the advancement, within the scope of Italgas and Stogit, of the “Cascade” project to promote knowledge of the business strategies and explain the links between business objectives and organisational structures.

Training

With respect to training activities, besides the development of a culture and organisational conduct geared toward the new reference model connected with the company acquisitions process, the main guidelines have been expansion of the skills of the technical personnel and support and assistance for the introduction of new and more sophisticated information technology systems to enable constant improvement of the integrated management activities for the processes.

Continuing from preceding years, intense effort has been applied to strengthen and update the technical and professional skills connected with the development of specialised know-how, representing about 50% of the training hours provided.

In compliance with the rules in force, specific training programmes have been activated on the Organisation and Control Model (Legislative Decree No. 231/01 – Administrative Liability) and on sensitive subjects such as health, safety and the environment, where 27% of the total training hours has been focused.

In 2009 a total of about 154,000 training hours have been provided (equal to about 25 hours per employee), with about 15,500 enrolments. The workforce of the business involved in training initiatives has been more than 76%.

Initiatives Focused on Employees

The Snam Rete Gas group promotes social initiatives for its employees and their families and earmarks funds and structures for them.

The company has developed an articulated system of opportunities over the years consisting of additional health coverage, insurance against accidents at work and outside the workplace (complementary to mandatory insurance coverage or coverage provided by governmental structures). The employees also have supplementary pension funds, loyalty bonuses and preventive medical assistance, in addition to sports and recreational events.

Direct involvement has continued in activities connected with a project, also involving the ultimate parent Eni, to implement an internal welfare system in order to improve the quality of life of the employees by facilitating the satisfaction of work commitments alongside personal and family ones. Among them stands out the initiative started in 2009 to implement an internal day-care centre and nursery school.

Relations with the Trade Unions

Relations with the Trade Unions, characterised by the start of discussions on topics connected with the acquisition of Italgas and Stogit and the resulting reorganisation, have proceeded constructively. The discussions between the parties have also developed on topics such as the Unitary Union Representative Body (RSU) settlement and safety, as well as on working hours and on the effects of the organisational changes implemented during the year.

Incentivation and Remuneration Systems

As well as its merit policy, based on roles and responsibilities, in recent years the company has strengthened a variable incentivation system for managers and junior managers tied to assessment of their performances (results). This involves the completion of specific individual objective forms based on the company’s general objectives. Assessment of performances in 2009 involved 100% of managers and roughly 65% of junior managers, chosen on the basis of their operating and management responsibilities.

The annual incentivation policy is closely tied to attainment of results and managers’ contributions to them. Managers have also been provided a long-term incentive and loyalty system consisting of a deferred cash incentive plan tied to business growth and operating efficiency38.

(38) Information on the incentivation plans is provided in the section “Remuneration and Other Information” in the management report of Snam Rete Gas S.p.A. for the financial year.