Solidarity measures are an unusual redundancy system where employees cutting their working hours for an equivalent pay reduction. The source said the measures agreed would affect 30,000 Telecom Italia workers for 12 months. It buys workers' jobs at the extent of sweeping pay cuts.
Presenting Telecom Italia’s new business plan in May CEO Amos Genish told unions the phone group needed to cut around 5,000 jobs and would do so through early retirements.
Telecom Italia has suffered a turbulent year as its largest shareholder, Vivendi, has battled with regulators and the Italian government over claims it exerts “de facto” control over the company. The government could yet use its “golden power” to try to force a break up of TI while Genish considers strategic options for the business that could lead to the disposal of units including Sparkle, its subsea cabling unit, and Inwit, its mobile masts business.