People and organisation

Consolidating the system of occupational skills and managerial abilities in tune with the changing business scenario, and promoting the enrichment of employment opportunities for people, the processes of organisational integration and of change management to make them more involved, informed and accountable for business strategies and objectives. These are the objectives of Snam, which wants to assist people in an ongoing process of development starting from the selection stage and always keeping in mind the skills required by the business strategies and mission.

Employment

At 31 December 2013, the Snam Group had 6,045 employees in service. The analysis by contractual category and Company included in the scope of consolidation is shown in the following tables:

More specifically, the employment figures recorded during 2013 are:

• an increase of 83 people, of whom 67 were recruited from the market (46 of whom university graduates); 3 people from non-consolidated companies and 13 for other new hires;
• a decrease of 89 people, 74 of whom due to termination of employment (8 of whom by unilateral termination by the Company); 1 transfer to other companies; 1 death and 13 for other departures from service.

There were also about a hundred transfers recorded between various Group companies, with the objective of making resource management better and more efficient.

Snam makes “good jobs” because it is a capital-intensive enterprise that is present in a large part of the nation, because it carries out activities involving qualifications and specialisations and because it offers stable, lasting jobs. A total of 96% of Snam personnel have permanent employment contracts. The remaining 4% have apprenticeship contracts that, by law, are temporary (although historically nearly all apprenticeship contracts have become permanent contracts at expiration).

With regard to territorial coverage, about 3,200 people are employed in northern Italy, 1,200 in central Italy and 1,600 in southern Italy.

EMPLOYEES BY GEOGRAPHICAL (NO.)

Enlarge image

STATISTICAL DIVERSITY: EMPLOYEES BY AGE BRACKET (No.)

Enlarge image

FEMALE PRESENCE (%)

Enlarge image

FEMALE PRESENCE BY STATUS (%)

Enlarge image

Organisation

The principal organisational changes that occurred in 2013 at Snam can be summarised as follows:

• the Enterprise Risk Management unit, directly reporting to the Snam Chief Executive Officer and with the goal of single, centralised risk oversight, was created as an outcome of project activity started in 2012;
• with a view to the strategic development of the Snam Group in the role of European infrastructure operator, the Business Development and Activities Abroad Division was created, reporting directly to the Snam Chief Executive Officer and with the task of promoting and supporting the growth of the Snam Group in the sectors where it operates, in line with the business strategy and the change in the markets of interest;
• following the change in the Corporate functions, the Road to Excellence project was launched; in 2013 this involved the Legal and Corporate Affairs and Compliance Division and the Human Resources and Security Division, with the aim of making operating methods ever more efficient, responding faster to business needs and developing core skill areas, and playing a proactive role in managing the change that is affecting the Snam Group;
• the need for strengthening the process of trade receivables management has led to the establishment of a centralised Snam Credit Management unit, which operates at the Group level, with a view to exploiting synergies and cross-functionalities among the various operating companies;
• the new organisational unit Finance M&A, reporting to the Finance Director, was formed to oversee the financial assessments related to corporate transactions included in the Snam Strategic Plan.

In the scope of transportation activities, steps were taken to strengthen the new corporate structure and, specifically, the organisational and operational mechanisms needed to optimise the functioning of the Operations, Commercial Development and Government Relations, Planning Administration and Control units have been specified and strengthened.

In particular:

• from the commercial perspective, steps have been taken in the organisational redesign of work processes for managing gas operating processes in line with the requirements imposed by constant changes in the business and regulatory scenarios (in particular the G-1 market launch) with an expansion of shift activities;
• in the scope of management and control, centralised cost control oversight was established for all Company units;
• in the Operations scope, the following are notable:
  • reorganisation of technical activities, with the creation of an integrated focus for reference in activities relating to methane pipelines, compression stations and the measurement that represents a reference on the change in transportation activities abroad as well;
  • continuation of the implementation plan for the territorial reorganisation of maintenance centres and, in line with the plans already determined at given times in the past, of the process of experimentation in “leaving home” operating methods with the signing of the Union Agreement on 24 September 2013.

In the course of 2013, in the scope of storage activities, organisational changes took place as summarised below:

• in the scope of Operations, the Cortemaggiore-Bordolano Focus Unit was created in view of the future start-up of operating activities also at the new Bordolano facility; furthermore, by virtue of changed operating requirements, the night shift is no longer active at the Cortemaggiore facility, and its functioning has thus been made to match the other storage facilities;
• the operating methods to manage the commercial processes in gas operation, in line with the requirements imposed by constant changes in the business and regulatory scenarios, were redesigned with the strengthening of the organisational oversight dedicated to shift activities.

In the regasification segment there was a more in-depth design of the processes of the Commercial area in line with the requirements imposed by the regulatory and business scenarios.

On the other hand, in the scope of distribution, in 2013 the following are of particular note:

• specific projects were started to improve efficiency of operational processes related to the management of tenders for the awarding of the gas distribution service;
• there was full implementation of the modifications made to the management of the remote reading of gas meters, both on the computerised level as well as on the level of technical organisation;
• with a view to the technological upgrading of the Group’s information systems, a project was started to assess the organisational and technical impacts of adopting integrated IT solutions with the aim of pursuing logistics of efficiency and effectiveness at the Group level;
• projects have been initiated to assess the organisational impacts involving corporate operations and joint ventures for the development of natural gas distribution activities in the territories of north-western and central Italy.

Lastly, the main changes involving Napoletanagas were as follows:

• On 1 January 2013 the Company make use of Italgas for the activities involving the supply of goods, labour and services of third parties and for the activities of managing and developing concessions for gas distribution (particularly participation in the tender for assigning the scopes of the gas distribution service, the management of current concessions and maintaining relations with Concessionary Bodies);
• within the scope of the Health, Safety, Environment, Quality and Corporate Body unit, lastly, an Inspection Body Unit was created to carry out inspection activities to check the converters associated with gas volume meters accredited for the type C Body (see standard UNI CEI EN ISO/IEC 17020:2012). These tasks are to be performed in compliance with proper separation of responsibilities and of reporting between inspections and the other activities carried out and, in particular, with the function of checking carried out distinctly and independently from the repair function.

In 2013 the Corporate System Framework was created: a document that is the at the apex of the pyramid of the Snam regulatory system and which was created with the objective of innovating and simplifying the structure of the earlier Organisational Manual, adapting it to organisational changes and new business challenges.

The Corporate System Framework represents a different approach, not only in terms of its content, but also in its form and the way it is used. The aim was to create a simple document that could be accessed immediately and applied across the entire Group, including to employees working abroad. Since Snam is now operating in an international context, this aspect was a special area of focus for a business that has set its sights on the international markets and intends to grow further in this direction. The document has therefore been translated into English and French, so that personnel abroad can use it as a reference. For the same reason, references to Italian entities, institutions and laws have been removed.

Involvement and participation initiatives

Snam believes that communication plays a key role in promoting the participation and involvement of its staff. The aim is not just to “inform”, but to raise awareness, provide shared experiences and bring people together, making them feel closer to the Company by putting them right at the heart of it.

The results of the Snam Group’s “One Voice” employee survey were published in 2013. The results show a positive overall perception in line with the leading companies in Italy. They also reveal some areas in which Snam employees would like to see further improvement; we are investing in these areas in order to meet the requirements expressed by our workers. The broad areas of intervention are: empowerment, development, performance management, communication and innovation.

There are many channels and instruments through which Snam shares its values, challenges, objectives and projects, increasing the level of employee satisfaction in carrying out their activities.

The Group’s intranet is not only built as a tool for information but also as a place for sharing and developing knowledge. It underwent some significant updates in 2013: changes to some parts, such as “Highlights” and pop-ups, which were introduced during the year, have made the intranet a new, interactive tool from the home page onwards. We are continually publishing more news and using more video content.

Snam creates and uses printed publications such as newsletters, brochures, posters and flyers to ensure that all its employees are included, even if they do not have easy access to a computer. During 2013, the “Energie” Newsletter followed changes and developments at the Company by publishing “Speciali di Energie”, examining some topics closely such as the results of the employee survey, and distributing a questionnaire to evaluate employees’ knowledge and use of, and satisfaction with, the Company’s welfare systems, as well as to gather their suggestions. There has been a considerable increase in the volume of news, but the content has also changed: news is now published with a view to giving people more information about the Company and making them feel part of a continually evolving organisation.

“Sapernedi+” 2013, the communication initiative aimed at raising awareness of the Company’s values and strategies and sharing the issues, problems and solutions of individual business units, has been a success. Nearly 5,000 employees, or 83% of the Group’s workforce, took part through around 250 meetings that took place at the Company’s various offices throughout the country. This enabled us to reach every one of the Group’s centres, operating hubs, districts, stations and business units.

While retaining their respective autonomy and business cultures, in 2013 Snam and TIGF launched the “Partage” knowledge- and experience-sharing programme with a view to identifying the sources of value that might help TIGF to grow as part of Snam’s international strategy. Some 70 people have taken part in the programme, which has initiated seven projects.

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.

Throughout 2013 more than 198,350 hours of training were provided (amounting to 32.8 hours per employee) to 23,811 participants.

The Company personnel involved in training initiatives amounted to 96.8%, a sure sign of the continual and all-encompassing commitment to update and develop the knowledge of all personnel.

As in previous years, the firm commitment to vocational training for the development and strengthening of specialised technical expertise and in the field of sustainability continued.

The most significant and/or interesting initiatives launched and implemented in 2013 included the following:

• specific training activity was carried out following the SAP upgrade, which affected all Company departments;
• following changes introduced by the Italian Anti-Corruption Law, an e-learning system helped to disseminate the principles and content of the new model adopted by the Board of Directors in relation to Legislative Decree 231/2001;
• a joint training course with Terna’s managers was developed in order to boost growth by comparing different business cultures. The “Forma(re)ti” project is a training programme reserved for executives and managers of companies with networks throughout Italy as part of a regulated business. The programme is dedicated to areas such as programme management, economics, bid and procurement management, supply chain and change management. Beyond its content, the programme has a unique inter-company structure, which Snam and Terna have embraced by hosting sessions at their own offices;
• managerial training activities continued;
• training dedicated to the maintenance and knowledge of technical systems was conducted;
• 2013 also saw the launch of the “Energienglish” programme, which offered all Snam staff the opportunity to take an online English course run by EF Corporate Language Learning Solutions. All Snam employees had access to the self-study programme, an online course consisting of 16 modules and using tools such as grammar guides, translation exercises and games. Approximately 1,900 employees have signed up to the year-long course, which is testament to its popularity. There are two other study courses available to those who require advanced knowledge of the language. In these cases, the e-learning modules are supplemented by group conversation sessions with mother-tongue teachers, weekly courses with individual lessons and foreign study placements.

We continued our commitment to the training required by current legislation and on sensitive areas such as health, safety, environment and quality. All health and safety courses were organised and run in accordance with the Agreement between the State and the Regions of 21 December 2011.

Initiatives in favour of employees

Snam’s corporate welfare system is a carefully structured group of instruments and services that aims to provide employees with a better work/life balance and, more generally, a better working experience.

The more traditional and established components of the corporate welfare system are as follows:

• complementary insurance against workplace and non-work-related accidents;
• supplementary healthcare assistance covering public and private healthcare and hospital expenses;
• complementary pension funds, which in most cases are topped up by employer contributions.

In addition to these benefits, there are initiatives and services for people in the following major areas: family, health and well-being, time and space, savings and relationships.

Our model is continually evolving to keep up with recent changes and to ensure high levels of satisfaction. The 2013-2014 welfare programme has three guiding principles: introduce new initiatives for emerging needs; draw up specific measures based on the needs of the Company’s various employees and ensure that employees are aware, informed and involved.

In 2013, a detailed analysis was carried out on Snam’s workforce, which is broad and diverse in terms of needs and sensitivities.

In order to maximise the cost/benefit relationship and to motivate people to take part and feel like they play a key role in the Company, we created a questionnaire to evaluate their awareness, use of and satisfaction with services, as well as to gather their suggestions.

During the year we created a special logo for our welfare activities, and expanded and enriched the dedicated area of the Company intranet to ensure that our employees are fully informed about the various welfare initiatives.

Over the coming months, partly based on the results of the analysis and the questionnaire, we may gradually introduce several savings (extending current agreements) and healthcare initiatives in support of families.

Industrial relations

Snam guarantees all workers the right to express their thoughts freely, to join associations and to engage in trade union activities. The relevant national collective labour agreements (the energy and oil contract for the transportation, storage and regasification segments and the gas/water contract for the distribution segment) apply to all Snam workers.

At the end of 2013, 50.75% of employees were members of a union.

During 2013, 240 meetings took place with the trade union organisations; a high number of meetings, at both national and local level, is a feature of the relationship between Snam and these organisations.

The negotiations paved the way for the use of a participatory model across all levels, which was formally introduced by way of a new Industrial Relations Protocol agreed by the parties on 17 October 2013. This hugely innovative document, the first of its type entered into by Snam, regulates all aspects of the negotiation system in order to simplify and bring it more into line with national and international benchmarks, based on the common desire to pursue corporate objectives through the use of tools that prevent conflict by encouraging the development and promotion of a participatory culture among employees. As well as the remodulation of national and local negotiating levels, in relation to the national collective labour agreements in place, the Protocol established:

• the Snam Industrial Relations Committee, comprising representatives from Snam’s management and from the national secretariats of the trade unions that signed the Protocol, as well as three employee representatives appointed by each signatory trade union. The Committee introduces mechanisms for providing information about topics pertaining to the overall energy and economic situation, particularly with regard to developing Company policies;
• a Study Commission with the aim of identifying new participation models in line with applicable legislation. The Commission comprises six members: one representative for each signatory trade union and three representing the Group companies;
• the Health and Safety Committee, comprising representatives of Snam’s management and individuals identified by the national secretariats of the trade unions.
• The Protocol also set out time frames for the establishment of a European Works Council pursuant to Legislative Decree 113 of 22 June 2012 (transposing Directive 2009/38/EC) following the Company’s recent acquisitions in Europe.

The Protocol also describes training as a subject affecting all Group employees insofar as they are strategic resources for the business, with the aim of developing professional capabilities and skills that adapt to changes at the Company, and thus resolving to invest significantly in training initiatives in the coming years.

In October 2013, as part of the Group integration, reorganisation and consolidation process aimed at achieving structural synergies and improving the quality/quantity mix, Snam signed an Employment Protocol that provides for the use of instruments under the current set of rules, specifically the redundancy, pursuant to Articles 4 and 24 of Law 223/91, of 300 workers and the recruitment of 150 people over the next three years in the Group’s various operating units.