Human Resources and Organisation

Organisational structure
There were no changes to the macrostructure of the business during 2010. However, we would point out the strengthening of ICT monitoring under the scope of corporate security management, through the move of the departments ‘Managerial Information Technology and Services to People’ and ‘Telecommunications' under the scope of said management.

Human resources
Changes in the number of Parent employees are shown below. It is pointed out that as of 31 December 2010, the subsidiaries TELAT, SunTergrid and RTS and the companies held for sale (RTR and Valmontone Energia), had no employees.


Terna
CHANGE IN THE WORKFORCE 31 Dec. 2010 31 Dec. 2009 Change
Senior management 59 65 -6
Junior management 502 488 14
Office staff 1,890 1,874 16
Blue-collar workers 1,017 1,020 -3
Total 3,468 3,447 21

The above figures do not include terminations with effect from 31 December.

Resource development
Resource development activities carried out in 2010 were organised into two important sectors: performance management and professional development.
The Global Performance System, introduced in 2009, in 2010 saw the first complete closure of an assessment cycle, broken-down into: a) assignment of 2009 objectives, b) assessment of performance and Terna organisational conduct, c) feedback by managers. In 2010, a new performance management cycle began with the assignment and communication of new objectives. In order to include new population targets, the number of participants involved in the process was gradually increased, now amounting to approximately 700. With regards to professional development, in 2010, with the support of an external executive search company, an assessment process began in operations management, with the aim of training the resources in view of the generational takeover that will involve Terna in the years to come.

 

 

Management incentive plans
Short-term management incentive schemes include an MBO plan for 2010 targeted at senior and middle management, related to the achievement of individual, department and company performance objectives. As concerns long-term management incentives, the 2006 Stock Option Plan is still in place, the deferral of which to 31 March 2013 was resolved in 2009. We note that during the period, a total of 3,486,900 options were exercised and that as of 31 December 2010, a total of 5,596,300 options can be exercised.
Long-term cash-based managerial incentives are available to top managers and key people under the cash-based threeyear Long Time Incentive (LTI) Plan, the purpose of which is to generate value and achieve the challenging performance targets set.

Training
2010 saw the completion of the two-year training plan that had begun in 2009. This was the first training plan to be launched after the creation of the “Grid Campus Experience”, the umbrella under which all company training of 2008 was classed, at the same time as starting a complete review of the training model and supply in order to ensure that it better met actual demands on field deriving from the evolution of Terna and the new features introduced into the HR development and management systems.
In 2010, the main new features introduced were all activated and started-up. These include, perhaps the most relevant, the medium-long term training schemes targeting new employees, with the aim of sharing knowledge and transferring typical, proprietary know-how of Terna, in order to ensure that it is maintained and optimised. Medium-long term training schemes were also begun for active resources, with the aim of aligning and updating the skills of homogenous professional
groups, often with strategic company relevance and duties. Additionally, the training scheme for the education section was also reviewed and enriched with new initiatives, devoted to the development of managerial and personal skills, namely soft and organisational skills. More specifically, in the wake of the introduction of the Performance Management System (GPS), specifically-focussed initiatives have been developed for the various training targets (middle managers, team leaders, professional managers, etc.), laid out in a customised fashion on the Terna organisational conduct expected in performance. Alongside these new proposals, the training commitment continued with regards to the promotion and diffusion within the company at various levels of sensitivity and skills of matters of Economics, Project Management and the Electricity Market.

 

Finally, a new line of training products has been developed: homogenous management/department events/workshops with team building objectives and a focus on strategic matters and challenging objectives.
With reference to the initiatives taken in relation to the development of technical-professional knowledge, specialise safetyrelated knowledge and transversal skills (e.g. I&CT), the traditional major commitment has been confirmed to ensure the necessary update and adjustment to technological and process innovation. We should point out, as far as safety is concerned, the completion of the activities looking to apply the provisions of the Consolidated Law 81/08.
On corporate governance, the annual update training scheme was developed on the provisions of ex Model 231. The Campus portal, which has been accessible from the intranet since the end of 2009, has been further enhanced. This has been done with a view both to supporting the diffusion of information on the training offer and to make the wealth of documentation available surrounding the courses, in particular those run by the Terna Faculty where there is a real baggage of company know-how. In short, 96% of resources attended at least one course in 2010 (+0.5% on 2009), with more than 171,000 hours of training actually delivered (approx. +5% on 2009).

Industrial relations
Industrial relations were marked by the negotiation for the renewal of the national collective employment contracts on 18 July 2006 for all workers of the electrical sector, as this expired on 30 June 2009. The agreement reached was signed on 5 March 2010 by Assoelettrica, Federutility, Enel, GSE, SOGIN and Terna. The expiry date for the renewed contract has been deferred by 6 months to 31 December 2012. Together with the national contract, guidelines were signed for the definition of new rules governing the right to strike in
the sector.