Telecom Italia to Request Special Public Fund to Reduce Labor Costs

   By Marc Navarro Gonzalez

Telecom Italia SpA (TIT.MI) said that requesting a special public fund to support its plan to reduce labor costs seems "inevitable" after it failed to reach an agreement with trade unions.

The telecommunications company said Thursday that it intends to submit plans for an extraordinary redundancy fund to the Italian Ministry of Labour to help finance the company's reorganization. These type of funds, also known as CIGS, are used to protect workers' incomes and contribute up to 80% of the pay of employees affected by layoffs.

"It has not been possible to reach a joint solution fit for the company transformation challenges," Telecom Italia said in a statement in reference to its failed talks with unions.

Telecom Italia said it will analyze and discuss the project submission with trade union organizations with prospects of reaching an agreement.

Write to Marc Navarro Gonzalez at marc.navarro@dowjones.com

(END) Dow Jones Newswires

May 17, 2018 06:55 ET (10:55 GMT)

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