Poste Italiane may turn to nepotism to cut costs
Poste Italiane has proposed an innovative way to cut costs and usher out older workers: nepotism, reports Bloomberg. The article continues:
Under a draft plan detailed to unions, postal workers at 140 branches who agree to early retirement can cede permanent job contracts to their children. The “heir” must be at least 30 years old with a high school diploma. Talks on the policy are at an “advanced stage,” and it could be implemented by early October, said Walter de Candiziis, head of Failp-Cisal, the union that first suggested the plan in 1997.
Italy is mired in its worst recession since World War II, and unemployment may swell to more than 10% this year, the highest in almost a decade, the Organisation for Economic Cooperation and Development estimates. Italy’s youth unemployment rate has soared to 26%, 20 points higher than the average for the 30 nations of the OECD.
Under the new proposal, postal workers can deliver job security to their kids, at a time when most Italian companies are shying away from offering such jobs for life. For employers, the permanent contracts are difficult to break when staff cuts are needed and. they require more generous social-security contributions that increase as the worker ages.
Poste Italiane created in 1860 after the unification of Italy, had revenue of $26.4bn last year, according to its annual report. Poste employs 155,732 workers.
Nepotism has deep roots in Italy. The word derives from the Latin for nephew and has its origins in the practice of popes elevating their nephews to the position of cardinal to create papal dynasties.
The Poste plan comes at a time when the government is trying to break with that history and promote meritocracy in the public administration to boost Italy’s declining productiveness. Italy ranked 48th in the World Economic Forum’s 2009 global competitiveness ranking, trailing countries such as Estonia, Thailand and Barbados.
To qualify, a retiring worker would have to be at least 58 years old and have made 35 years of pension contributions. Candidates looking to take their parents’ place at the post office would be subject to a job interview.
