to download Telecom Italia Annual Report 2011 - Company Reporting

Telecom Argentina
Since 2010, trade unions in the telephone industry have come together in a federation of
telecommunication unions called the MUS (Mesa de Unidad Sindical de las Telecomunicaciones), which
is the main forum for dialogue about the various issues being negotiated. In this context, joint
negotiations were conducted in 2011 and salary increases were agreed that will apply until 2012.
During 2011, the application of teleworking continued as part of the pilot programme for the
implementation and promotion of teleworking in the private companies PROPET (Programa Piloto de
Seguimiento y Promoción del Teletrabajo en Empresas Privadas) of the National Ministry of Employment
MTEYSS (Ministerio de Trabajo, Empleo y Seguridad Social), as an additional tool for achieving a better
work-life balance. The programme was applied during 2011 to 66 employees in several areas of the
company in 11 different provinces.
Remuneration policy
In 2011, remuneration policies pursued the aim of cooling the incremental effects of the increase in the
fixed component of labour costs over time. Intervention was focused on the variable elements of
remuneration, making exclusive use of one-off tools with a greater degree of selectivity than in the past.
Interventions on fixed remuneration were frozen, with the exception of measures regarding individuals
working in core business positions characterised by the actual existence of risks of a competitive nature.
The MBO 2011 system, the only short-term formalised incentive tool aimed at managers and particularly
valuable employees, confirms the importance that the company has placed over the past two years and
continues to place on corporate and departmental macro-economic objectives. In 2011, investment has
continued to be made in enhancing the non-monetary components of the pay packet (company
benefits). Telecom Italia has equipped itself with a long-term incentive system that brings together
senior executive personnel, top management and a selected number of managers in achieving preestablished
three-year performance objectives in order to strengthen the link between management
remuneration and company performance ensuring the long-term sustainability of the company's results.
Employees share ownership plan 2010-2014
In 2010, Telecom Italia launched the 2010-2014 employees share ownership plan for all permanent
employees of Telecom Italia or its subsidiaries with registered offices in Italy.
During the first subscription phase, which took place between June 28 and July 9, 2010, all employees
were able to purchase ordinary shares, with a 10% discount on the market price, up to a maximum
countervalue of three thousand euros.
Report of Operations Sustainability Section 134