Personnel changes

After a period of growth, the Group’s personnel decreased in 2009. This reduction was essentially the result of a larger than expected number of terminations at the end of the year, which will lead, among other things, to a larger number of hires in 2010. This result is in line with the Company’s plans, which provide for – after a period of consolidation of the organisational structure begun in 2006 (+136 employees in Italy between the end of 2005 and the end of 2008) – a gradual increase in efficiency.

Retirement is by far the most important cause of employee terminations, which are concentrated among the oldest workers. The turnover rate for spontaneous resignations is very low (0.7%), while the overall turnover rate reflects mainly retirements. In 2009, the average number of years worked in the Company at the time of retirement was 32.

 

AVERAGE LENGTH OF EMPLOYMENT OF EMPLOYEES LEAVING THE COMPANY(1)

  2009
Total terminations 32.3
Men 33.0
Women 25.5
Less than 30 years old 1.0
Between 30 and 50 years old 8.6
Over 50 years old 34.1

(1)In the case of employees who entered Terna following acquisitions, the length of employment takes into account  their employment at the company acquired

For the sake of completeness, it should be noted that as of December 31, 2009 Terna S.p.A. had 33 temporary workers – 15 in 2008 and 20 in 2007 – who were employees of an agency. Although they are not employees of the Company, they were included in Terna’s activities for a pre-established period and fall under the G3 definition of “total workforce” as “supervised workers”. These individuals are excluded from the personnel data shown in the table. In Italy, the reduction in the percentage of fixed-term workers (from 4.8% to 2.1%) reflects the movement to permanent status of employees who had been previously covered by beginner contracts, which have a pre-established term at the end of the period of training and professional integration

PERSONNEL CHANGES

  2009 2008 2007
Total employees 3,447 3,524 3,495
   Employees hired during the year 57 155 280
   Employees who left during the year 134 126 152
       men 122 119 144
      women 12 7 8
       less than 30 years old   1 6 5
      between 30 and 50 years old 8 21 11
       over 50 125 99 136
Termination turnover rates (1)  (%)      
       Total 3.8 3.6 4.4
       Men 3.5 3.4 4.1
       Women 0.3 0.2 0.2
       Less than 30 years old 0.0 0.2 0.1
       Between 30 and 50 years old 0.2 0.6 0.3
       Over 50 years old 3.6 2.8 3.9

(1) The turnover rates show the ratio of terminations to the number of employees on December 31 of the previous year.

PERSONNEL COMPOSITION

  2009 2008 2007
Total employees 3,447 3,524 3,495
By contract category      
     permanent 3,374 3,358 3,362
fixed-term (1) 73 166 132
By employment category      
     full-time 3,417 3,498 3,465
     part-time  30 26 30
By gender      
     men 3,092 3,165 3,154
     women 355 359 341
By age
     
      less than 30 years old 393 409 343
       between 30 and 50 years old 1,553 1,609 1,681
       over 50 years old 1,501 1,506 1,471

(1) "Fixed-term contract” comprises training, beginner, and other fixed-term contracts in effect at the end of the year.

To facilitate the interpretation of several indicators regarding the composition of the personnel, the following table shows the breakdown of Terna S.p.A.’s employees by professional category as of December 31, 2009.

PERSONNEL COMPOSITION BY CATEGORY

  2009
Senior executives 65
Junior executives 488
White-collar workers 1,874
Blue-collar workers 1,020
Totall 3,447

In 2009, 336,600 days were worked by employees of contractors on works on behalf of Terna, the equivalent of 1,530 full-time employees (FTE), mainly blue-collar workers. The increase with respect to 2008 was due to the growth of investing activities. These data take into account the duration of work contracts, as well as the variability of the use of workers therein, and regard all of Terna’s work contracts, from the worksites of large-scale construction work to the cutting of vegetation under electric lines. The days worked and the FTE were estimated on the basis of the average daily presences in the major worksites and the sums paid for contract work in the minor sites.

EMPLOYEES OF CONTRACTORS AND SUBCONTRACTORS - ITALY

  2009 2008
Days worked 336,600 251,994
Full - time equivalent 1,530 1,145