People and organisation

During 2011 initiatives continued in support of the merger between Snam Rete Gas, Italgas, Stogit and GNL Italia, with the aim of improving the overall efficiency of the system, protecting and developing business know-how in support of the business strategies.

June 2011 also featured the publication of Legislative Decree no. 93 of 1 June 2011, which introduced EU Directives concerning the Third Energy Package, for the creation of a continental network to guarantee safety in gas supply.

In 2011 initiatives were conceived and realised aimed at aligning the group’s corporate structure to the obligations set out in EU Directives, with the aim of reinforcing the know-how of the individual operating companies.

The group’s new configuration (in place from 1 January 2012), as well as delivering a series of centralised services, gave the Snam management the roles of strategically addressing, heading and coordinating the following business activities: transportation, distribution and storage of natural gas and regasification of liquefied natural gas.

Employment

At 31 December 2011, the Snam group had 6,112 employees in service. The analysis by contractual category and by companies included in the scope of consolidation is given in the tables below:

In 2011 personnel in service recorded an increase of eight employees, from 6,104 at 31 December 2010 to 6,112 at 31 December 2011. This trend shows that the rationalisation and efficiency measures made to the organisational structures have offset the inclusions implemented throughout the group (from the labour market and for acquisition of business units) in the adjustment plan to the provisions of Legislative Decree no. 93 of 1 June 2011, in particular for ensuring the operations and services previously acquired from the vertically integrated company or from its subsidiaries.

More specifically, the employment figures recorded during 2011 can be summarised as follows:

• increase of 140 persons due to hirings coming in from the market (including 51 graduates);
• increase of 108 persons through the acquisition of businesses (“Unbundled ICT” from Eni S.p.A. and “Unbundled Companies Administrative Services” from Eni Adfin S.p.A.) and as a result of the movements of managerial jobs in companies of Eni S.p.A. or subsidiaries of the Snam group;
• reduction of 240 persons following termination of employment.

Personnel on permanent contracts amount to 95% of the total, while 211 have an apprenticeship or internship contract; 53% of the workforce is employed in northern Italy, 21% in the centre of the country and 26% in the south and Sicily.

DISTRIBUTION OF EMPLOYEES BY GEOGRAPHICAL AREA (number)

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DISTRIBUTION OF EMPLOYEES BY AGE GROUP (number)

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Personnel with degrees account for 10.5% of the total, and those with diplomas 51.7%; the average age of employees of the group is 48 years, and the average length of service is around 23 years. Due to the management policies applied, these values are essentially stable.

In 2010, 10.5% of all employees were women, a significant increase compared with 9.6% in 2010, while the percentage of female managers was 11.5%, an increase compared with 10% in 2010.

PERCENTAGE OF FEMALE PERSONNEL (%)

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Organisation

The principal organisational changes implemented during the course of 2011 were as follows:

• a process for the reorganisation of Italgas operations, which involves the management of site and district processes (guidance, monitoring, control) and of operational activities with multiple resources throughout the territory;
• based on the new concession regulations in the gas distribution market, a management review process was initiated which aims to configure the company according to new local areas;
• the project for internalising and coordinating Stogit maintenance activities was brought to a conclusion.

Based on the enactment of the Third Energy Package, a significant reorganisation of Snam and its subsidiaries was implemented, and as a result the new corporate structure came into force with effect from 1 January 2012. The new structure places Snam S.p.A. at the head of the group, controlling the four operating companies (Snam Rete Gas S.p.A., Gnl Italia S.p.A., Stogit S.p.A. and Italgas S.p.A.). This arrangement involves:

• the transfer of the natural gas transportation, dispatch, remote control and metering business unit from Snam to Snam Rete Gas, with effect from 1 January 2012;
• focus on Snam in the corporate role (strategic guidelines, coordination/control of group activities and provision of central services) and the reinforcement, for the subsidiaries, of the main support processes, in addition to the traditional business management;
• the termination of service agreements with Eni or with its subsidiaries;
• acquisition of the Eni Adfin business unit which handles the accounting and administration of Snam and its subsidiaries (1 November 2011);
• acquisition of the Eni business unit which handles the ICT services of Snam and its subsidiaries (1 November 2011);
• acquisition of the Eni servizi S.p.A. business unit operating in general services, in particular building services (during 2012).

The gas market balancing system launched on 1 December. The system is based on criteria of economic merit, for the requirements of competition and flexibility of the gas system and is in line with the national and European legislative framework.

Involvement and participation initiatives

Encouraging participation, which includes listening to people’s needs and their requests for improvement, fosters a positive internal climate. There are many channels and instruments by which Snam shares its values, challenges, objectives and projects, increasing the level of employee satisfaction in carrying out their activities.

The group’s intranet site is not only built as a tool for information but also as a place for sharing and developing knowledge. In 2011 videos were used more frequently as tools for the immediate sharing of information on crucial topics and to report significant events. To include all group personnel, including those difficult to reach using the information network, Snam realises and uses many paper products such as posters, flyers, brochures and newsletters.

The Sapernedi+ initiative provides a widespread structure for discovering and proliferating the company’s values and strategies, as well as for sharing issues, problems and solutions for daily management. This was rolled out in autumn 2011 to all organisational units, using a cascading process which reached all Snam personnel and became a significant opportunity to share new scenarios and the upcoming group restructuring, but also to compare activities and projects in each area of operations.

Training

Development and consolidation of the system of professional skills, in tune with trends in the environment in which the business operates, are an integral part of the personnel development process.

Training is an essential element for enriching the employment opportunities of personnel and for supporting the processes of organisational integration and change management.

In 2011 more than 187,000 hours of training were provided (amounting to 30.6 hours per employee) to 16,437 participants.

The company personnel involved in training initiatives amounted to 89.6%, a sure sign of the continual and all-encompassing commitment to update and develop the knowledge of all personnel.

During the year many initiatives were undertaken in support of the organisational actions set out for the integration process initiated in 2009. Among these were the training initiatives, achieved in collaboration with the Polytechnic University of Milan, on “Economic and operational logics of regulated markets”, which were attended by group company managers and recently appointed graduates.

Of particular significance was the commitment required from the Stogit maintenance internalisation project, which involved more than 60,000 training hours for the personnel concerned.

Following on from previous years, the commitment to professional training continued for the development and consolidation of the specialist technical know-how in health, safety and environment, with more than 33,000 hours of training.

Initiatives in favour of employees

Snam offers its employees and their families social initiatives for a better work/life balance to improve the quality of the work environment, thus promoting well-being among personnel.

Over the years, a detailed system of opportunities has been developed that includes supplementary healthcare benefits and insurance cover for working and non-working accidents, additional to the statutory benefits or those provided by other public bodies. Employees can also access supplementary pension funds, company loyalty awards, healthcare prevention campaigns, sporting and recreational initiatives.

The “Well-Being Programme” offers the opportunity to engage in physical activities at selected and approved sports centres in the vicinity of the office blocks, at preferential membership rates.

Additional conventions have also been instigated which allow access, under favourable conditions, to personal loans, credit cards and the purchasing of goods and services at discounted prices (used cars, car rentals, branded products, holiday bookings).

Industrial relations

During 2011 relations with the unions were focused on the following: 1) the development of group integration processes, required in particular by the need to implement Legislative Decree no. 93 of 1 June 2011, which set out the separation between the Vertically Integrated Business and the Major Natural Gas Transportation Operator, preventing the former from supplying services to the latter; 2) the entry into force of the more recent regulations concerning Distribution which, with the introduction of new criteria on the assignment of concessions and specific constraints on employment (cohesion clause), provide highly innovative regulation.

This was debated both nationally and locally, and was subject to an agreement (as per the procedure pursuant to Article 47 of Law 428/90 as amended):

• the acquisitions, pursuant to Article 2112 of the Italian Civil Code of the businesses “Unbundled ICT” and “Unbundled Companies Administrative Services” from Eni S.p.A. and Eni Adfin S.p.A. respectively;
• the group restructuring, which saw the transfer to Snam Rete Gas of the natural gas transportation, dispatch, remote control and metering business unit in Italy, as well as the reallocation of certain activities to Stogit (again via the transfer of business), Italgas and GNL Italia.

In accordance with the entry into force of the aforesaid regulations, the Italgas agreement on the new operating organisation was reached, aimed at improving protection of the territory.