Profile of the rail transport sector in Italy

Profile of the rail transport sector in Italy

Executive summary

Structure of the railway market

Market volume and development

Players in the railway market

Changes and trends in labour market and working conditions

References

Annex: Note on methodology

This report is available in electronic format only.

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Executive summary

The last 15 years have seen the transformation of Ferrovie dello Stato into a holding with several specialised companies. In the Italian railway market, the Ferrovie dello Stato group has maintained a leading position and employs around 95% of railway workers in Italy. Few new players are currently active in the freight transport with a small but increasing market share. First tenders and increase in traffic on regional lines are showing the growing importance of this market segment. Here, the Ferrovie dello Stato group competes and sometimes cooperates with small regional companies, which are starting to expand beyond their original network. Certainly one of the most significant aspects of reform of the Italian railway system has been the adoption of the first industry-wide national collective agreement in 2003 applied by Ferrovie dello Stato and other operators. It is complemented by company level agreements but nonetheless prevents large differences in pay and working conditions between the incumbent and competitors. Extensive reduction of employment in the railway sector over the past 15 years seems to have come to a stop. Trenitalia, the passenger and freight transport division of the Ferrovie dello Stato group, employed 56,000 people in 2004 from over 120,000 in 1998. The changes in working condition have seen the loss of some privileges and a reduction of the (still existing) pay differential with employees in other sectors. Income is today more differentiated and to some extent performance related. Companies have developed human resources policies, to ensure the necessary skills levels and to close a gap with European competitors. The number of accident involving railway workers has decreased. Women's employment is increasing but is still on comparative low levels (10%–15%). These changes have not affected the role and the importance of railway trade unions. The annex outlines the methodological approach developed to calculate employment levels in the Italian railway sector. This is a key indicator of the impact of the EU legislative framework governing the sector.

Structure of the railway market

Main public institutions The Ministry of infrastructure, together with the Ministry of treasury, exercises the shareholder power in Ferrovie dello Stato. The main tasks within the Ministry of infrastructure regarding railways are as follows: • responsibility for management of the infrastructure and definition of the contract; • definition of the contract with long-distance transport operators; • establishing ticket prices for long-distance railway transport in co-operation with

the inter-ministerial committee for the economic programme, CIPE; • defining the track fee and the rules to allow access to the network and assigning

tracks to the railway operators;

© European Foundation for the Improvement of Living and Working Conditions, 2006 1


• establishing safety standards; • coordination and supervision of the railway transport in order to ensure safety. The other relevant body within the Ministry of infrastructure is the Office for the regulation of railway services (Ufficio per la regolazione dei servizi ferroviari). The national authority for the market and competition (AGMC) is responsible for ensuring competition and good market conditions. This authority can also intervene in the railway sector. The 20 regions and the autonomous provinces in Trento and Bolzano are responsible for planning and financing regional passenger transport. Financing of the transport services The different types of transport are financed in different ways. • Long-distance passenger transport is basically not financed. Ticket prices are fixed

by the government (CIPE and the ministry for infrastructure) with a price cap methodology. Nevertheless, this process has been blocked by the government and ticket prices have not increased since 2001.

• Regional transport was regionalised in 2001. It is financed by the regions and subsidised by the government. Since 2001, the regions sign a service contract on a biennial basis with the main player for long-distance passenger transport, Trenitalia, the Contratti di Servizio. Some regions have already tendered for regional public transport services. The average public contribution amounts to 65–70% of the turnover.

• Valle d‘Aosta, Friuli Venezia Giulia, Sicilia and Sardegna as well as the two autonomous provinces of Trento and Bolzano have a special status; the regionalisation has therefore proceeded differently, but the results are comparable.

• Freight transport is basically not subsidised, apart from the contributions approved by the European Commission.

Award of public services Long-distance passenger transport Only Trenitalia carries out long-distance passenger transport and an open public tender procedure is currently not planned. Regional passenger transport Regional passenger transport has been regionalised since 2001. Some regions started to publish public tenders in 2004, to which several companies participated. The standard procedure is not clear and sometimes contradictory. Different awarding systems seem to be allowed, such as in-house awarding or partial privatisation. Figure 1 describes the tenders which have already taken place or are planned. The results show a predominant role of the incumbent company, Trenitalia.



Figure 1: Published tenders in regional transport

Source: SCI Verkehr GmbH, 2005

Freight transport Rail cargo services are carried out by different operators competing against each other. So far, only Trenitalia offers freight transport services on the entire national network. Competition control Italy does not have an independent railway authority. The tasks connected with article 30 of EU Directive 2001/14/CE are carried out within the Ministry of Infrastructure by the Office for the regulation of railway services. Access to the network requires a licence issued by the Ministry of infrastructure and a safety certification issued by CESIFER, which is part of the technical direction of Italy’s rail infrastructure incumbent, Rete Ferrovia Italiana (RFI). The antitrust authority (Autorita’ garante per la concorrenza ed il mercato) also controls competition in the railway sector. Implementation of EU legislation First railway package – infrastructure package Directives • National legal provisions: Directive 2001/12/EC; Directive 2001/13/EC; Directive

2001/14/EC. • Status: Processed.


http://europa.eu.int/cgi-bin/eur-lex/udl.pl?REQUEST=Seek-Deliver&COLLECTION=oj&SERVICE=all&LANGUAGE=en&DOCID=2001l075


Second railway package • National legal provisions: Directive 2004/49/EC; Article 8 (2) of Directive

2004/49/EC; Directive 2004/50/EC; Article 2 of Directive 2004/50/EC; Directive 2004/51/EC.

• Status: Not communicated to the European Commission yet. Interoperability Directives • National legal provisions: Directive 2001/16/EC. • Status: Processed. • National legal provisions: Council Directive 96/48/EC. • Status: Processed. Older adopted railway Directives • National legal provisions: Council Directive 91/440/EEC. • Status: Processed. • National legal provisions: Council Directive 95/18/EC. • Status: Processed. • National legal provisions: Council Directive 95/19/EC. • Status: Processed.

Market volume and development

Track length • 19,400 km.

• 16,000 km are administered by RFI. • 10,900 km electrified. • 9,700 km with one track.

• 3,500 km are administrated by 25 different infrastructure companies. Passenger transport

Long-distance passenger transport Operating performance (in millions of train kilometres):

Figure 2: Operating performance of passenger transport (long distance) in train-km

million train-km

88 83 83 82 83 83

0

20

40

60

80

100

1998 1999 2000 2001 2002 2003




Transport performance (in billions of passenger kilometres):

Figure 3: Transport performance of passenger transport (long distance) in passenger-km

billion passenger-km

23.423.8

27.5 27.3

26.0

24.9

21

22

23

24

25

26

27

28

1998 1999 2000 2001 2002 2003


Number of companies: One. Short-distance passenger transport Operating performance (in millions of train kilometres):

Figure 4: Operating performance of passenger transport (short distance) in train-km

million train-km

166 166 169 169 171 175

43

0

50

100

150

200

250

1999 1999 2000 2001 2002 2003

CompetitorsTrenitalia




Transport performance (in billions of passenger kilometres):

Figure 5: Transport performance of passenger transport (short distance) in passenger-km

billion passenger-km

18 20 20 19 20 20

3

0

5

10

15

20

25

1998 1999 2000 2001 2002 2003



Number of companies: 28. Freight transport Operating performance (in millions of train kilometres):

Figure 6: Operating performance of freight transport in train-km

million train-km

6658 58 57 57 59 61

4

0

10

20

30

40

50

60

70

1998 1999 2000 2001 2002 2003 2004



Number of companies: 13.



Players in the railway market Passenger transport Long-distance passenger transport Trenitalia is the only player.

Regional passenger transport Twenty-eight operators provide regional railway services, controlled by the government as well as by regional or urban councils. Ferrotramviaria and SSIF are privately owned operators, thus not under the government’s control. Each operator mainly offers services on an ‘own’ independent rail network. Only a few operators have recently started to offer services on the RFI network. Table 1 shows a complete list of regional transport operators.

Table 1: Regional transport operators in Italy Region Company City Abruzzo Ferrovia Adriatico-Sangritana Lanciano Calabria Ferrovia della Calabria Catanzaro Campania Circumvesuviana Napoli Campania Metrocampania di Nordest Napoli Campania Metronapoli Spa Napoli

Campania Societa l’Esercizio Pubblici Servizi Spa (SEPSA) Napoli

Emilia Romagna Suburbana FBV Scarl Bologna Emilia Romagna Ferrovie Emilia Romagna Srl Ferrara Emilia Romagna Azienda Trasporti Collettivi e Mobilita SpA Modena Emilia Romagna Azienda Consorziale Trasporti Reggio Emilia Reggio EmiliaFriuli Venezia Giulia Ferrovia Udine Cividale Srl Udine Lazio Met.Ro SpA Roma Liguria Ferrovia Genova Casella Genova Lombardia Ferrovie Nord-Milano Esercizio SpA Milano Lombardia Trenitalia SpA Milano Piemonte Societa’ Subalpina di Imprese Ferroviarie Domodossola Piemonte Gruppo Torinese Trasporti Spa (GTT) Torino Puglia Ferrotramviaria SpA Bari Puglia Ferrovia del Gargano Bari Puglia Ferrovie Apulo – Lucane Bari Puglia Ferrovie del Sud-Est Bari Sardegna Ferrovie della Sardegna Cagliari Sicilia Ferrovia Circumetnea Catania Toscana La Ferroviaria Italiana Spa Arezzo Trentino Alto Adige/Suedtirol Societa’ Autolinee Dolomiti Bolzano

Trentino Alto Adige/Suedtirol Trentino Trasporti Spa Trento

Umbria Ferrovia Centrale Umbra Perugia Veneto Sistemi Territoriali Spa Padova




Freight transport Since 2000, several players have started to compete in the Italian market. Currently, 12 freight transport companies compete in the market with Trenitalia. The new players can be divided into the following three groups. • Five operators are entirely controlled by companies which already had

concessions for regional passenger transport on dedicated networks and are now exploring new opportunities: Ferrovie Nord Cargo, Ferrovia Adriatico-Sangritana, Sistemi Territoriali, FER and ACT Reggio Emilia.

• Three new companies have been created in order to enter the railway business: Rail Traction Company, Del Fungo Giera and Serfer (controlled by Trenitalia).

• There are four foreign companies (active directly or through Italian branches): SBB Cargo Italia, Railion Italia, Hupac, SNCF.

Market distribution Long-distance passenger transport The only player is Trenitalia. For its international transport branch, Trenitalia has developed several joint ventures with foreign national operators (Artesia, Cisalpino, Allegro). Short-distance passenger transport There are 28 operators. Except Trenitalia, these operators are active at a regional level only, in one or, at most, two regions. Trenitalia holds a market share of approximately 80% of the Italian regional passenger transport in terms of train kilometres and 70% of the Italian passenger market in terms of passenger numbers. Other players in the sector are active mainly on their ‘own’ infrastructure in and around the main agglomerations.

Figure 7: Passenger transport (short distance), market share

Total: 218 million train-km

80%

20%

Trenitalia

Competitors


The second player in terms of passengers is Metro, which operates the subway in Rome (its market share is not included in Figure 7), followed by three suburban railway lines with different gauge and electrification systems. Consequently, Trenitalia’s main competitor is Ferrovie Nord Milano Trasporti, based in Milan. Several other players (Metronapoli, Circumvesuviana, SFSM, SEPSA and Alifana)



are active in the Naples metropolitan area. Figure 8 provides an overview of the main players’ market share in regional transport in terms of train kilometres.

Figure 8: Main players in regional transport, market share

train-km175.0

14.0 7.7 4.0 4.0 3.8 3.3 2.0 1.6 1.3 1.2 0.80

40

80

120

160

200Tr

enita

lia

ME

T.R

O(r

egio

nal l

ines

)

FNM

T

Met

rona

poli

(Lin

ea2)

Cir

cum

vesu

vian

a

SFS

M

FSE

FER

SE

PS

A

FAL

GTT

Alif

ana


Freight transport Trenitalia still controls around 94% of the Italian freight transport market. Their main competitors are Rail Traction Company, Ferrovie Nord Cargo and SBB Cargo Italia. RTC and FNC each accumulate more than 1 million km per year, while SBB Cargo Italia may pass 500,000 train kilometres in 2005. At any rate, their market share is relevant on some international corridors only. Rail Traction Company controls 30% of the freight rail transport on the Brennero-Verona line and now operates the Tarvisio-Villach line. Ferrovie Nord Cargo and SBB Cargo Italia have similar shares on the corridors with Switzerland (Chiasso, Luino and Domodossola).

Figure 9: Freight transport, market share

Total: 24.9 billion ton-km

94%

6%

Trenitalia

Competitors




Company profile of main players Trenitalia Spa Trenitalia Spa covers long-distance and regional passenger transport as well as freight transport. Market areas:

Figure 10: Trenitalia – market areas

Nationwide and cross-border operator of short and long-distance al well as freight transport services


Shareholder structure: 100% FS Holding, controlled 100% by the Italian Ministry of treasury. Trenitalia controls Passaggi Spa, Italcontainer Spa, Serfer Spa, Omnia Express Spa, Omnia Logistica Spa and Cargo Chemicals Spa. Group headquarters: Rome and Milan as well as 21 regional directions. Associated companies and co-operation partners: Trenitalia has won regional transport tenders in the Veneto region together with Sistemi Territoriali; in the Lombardia region together with Ferrovie Nord Trasporti and ATM Milano; and TX-Logistic in cargo.



Turnover:

Figure 11: Trenitalia – turnover 2001–2003

million €

5,1145,102

5,137

5,000

5,100

5,200

2001 2002 2003


Number of employees:

Figure 122: Trenitalia – number of employees 1998–2004

46,211 44,698 46,000

56,771 57,989 56,000

111,621115,986

120,367

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

1998 1999 2000 2001 2002 2003 2004

No.

of e

mpl

oyee

s

TrenitaliaFS




Group development:

Figure 13: Trenitalia – organisation chart

Source: Trenitalia Spa, 2004

Trenitalia Spa is the passenger and freight operator company of Ferrovie dello Stato Holding. Ferrovie dello Stato was transformed into an independent entity in 1985, becoming a completely separated company from the government administration. In the same year, two other companies, Italferr (engineering) and Metropolis, were created, which marked the deintegration process of the Italian rail transport services according to EU legislation. Since 1992, Ferrovie dello Stato is a stock-holding company entirely owned by the Italian Ministry of treasury. During the period 1998–2001, the reorganisation process was finalised with the creation of the FS Holding and several other government-controlled companies, including Trenitalia (trains owner) and Rete Ferroviaria Italiana (RFI, track administrator). In June 2001, Trenitalia became a corporate company, resulting in the present company organisation, which was defined in March 2005 and concluded the company’s reorganisation process. Further challenges include: • a passenger increase in regional transport in the coming years; • major changes in long-distance transport as a result of the implementation of high

speed (HST) train lines, beginning with Rome-Naples in December 2005 and Turin-Novara in February 2006;

• more integrated logistic services will renew freight transport.



Ferrovie Nord Milano Spa (FNMS) Market areas:

Figure 14: FNMS – market areas

Short distanceLong distance

Freight


Freight


Freight


Freight


Shareholder structure: 54.57% is held by the Lombardia region, 14.74% by Ferrovie dello Stato, 7.76% by Aurelia, 2.19% by MPS and 17.04% by others. Group headquarters: Milan. Associated companies and co-operation partners: FNMT has won a public tender in the Lombardia region (Pioltello-Milano-Gallarate) together with Trenitalia and ATM Milano; FNC, the freight transport branch of FNMT, is a member of the European Bulls alliance and co-operates with the port of Gioia Tauro.

Turnover:

Figure 15: FNMS – turnover 1996–2004

million €

42 41 46 52 61

212 225262

287

0

50

100

150

200

250

300

350

1996 1997 1998 1999 2000 2001 2002 2003 2004




Number of employees:

Figure 16: FNMS – number of employees 2002–2004

2,688

2,8022,850

2,500

2,600

2,700

2,800

2,900

3,000

2002 2003 2004

No.

of e

mpl

oyee

s


Group development: Ferrovie Nord Milano was created in 1887. According to the new regulation, Ferrovie Nord Milano Spa has been reorganised to become a holding and FNM Esercizio (FNME) is the infrastructure manager.

Figure 17: FNMS – organisation chart


Ferrovie Nord Milano Trasporti (FNMT), corporate since 24 September 2003, carries out the railway passenger transport services on the following regional lines: Milano-Asso, Milano-Como, Milano-Varese-Luino, Milano-Novara and Brescia-Edolo. Most of these services are carried out on FNMT’s own infrastructure. Ferrovie Nord Cargo (FNC), corporate since 1 August 2003, is a freight transport operator and part of FNME. FNC started its cargo services in September 2001 and



realised approximately one million train kilometres in 2004. The company uses the FS Holding infrastructure, mainly in the Lombardia and Emilia-Romagna regions. FNC is co-operating with the port of Gioia Tauro (the Calabria region) in order to develop inter-modal transports. Further challenges include: • open tender procedures for passenger transport that FNMT has to face; • improving freight services across Italy. Table 2 offers a detailed overview of the employment situation within the FNMS group in 2004.

Table 2: FNMS – employment in 2004

Company Activity Employees 2004 Avio Nord Srl Aviation 7 Cargo Clay Srl Freight transport /

forwarding 5

Eurocombi Srl Inter-modal rail transport 6 FN Ingegneria Srl Engineering 38 FNC Srl Rail freight transport 170 FNM Spa Holding 46 FNMA Spa Bus transport 261 FNME Spa Rail infrastructure 1,139 FNMT Srl Rail passenger transport 1,190 Malpensa Express Srl

Transport to/from airport 26

NordCom Spa TLC services 43 Source: SCI Verkehr GmbH, 2005

Rail Traction Company Rail Traction Company is one of the main players in freight transport, together with Trenitalia, Ferrovie Nord Cargo and SBB Cargo Italia. Market areas:

Figure 18: Rail Traction Company – market areas

Short distance

Long distanceFreight

Short distance


Short distance


Short distance





Shareholder structure: 33.97% is held by STR; 30.07% by Railion Deutschland; 16.98% by Ferrotramviaria; 8.49% by SAE; 6.99% by RESET 2000; and 3.50% by Fercam. Group headquarters: Bolzano; Rome. Associated companies and co-operation partners: Lokomotion GmbH. Turnover in 2004: €20 million. Number of employees in 2004: 80. Group development: Rail Traction Company was created in 2000 with the objective to develop freight transport on the Brenner route. In 2005 it started to operate at the Travisio-Villach border crossing. SBB Cargo Italia Market areas: The market area reaches from the Swiss border crossings to Novara, Milano, Brescia, carried out on the RFI network.

Figure 19: SBB Cargo Italia – market areas

Short distance


Short distance


Short distance


Short distance



Shareholder structure: 100% controlled by SBB Cargo. Group headquarters: Gallarate.



Associated companies and co-operation partners: SBB Cargo Srl (commercial office) in Milan. Turnover in 2004: Active since 2004. Number of employees in 2004: 150 people, of whom 60 are locomotive drivers. Group development: SBB Cargo Italia was created in December 2003 from the fusion between SBB Rail Cargo Italy and the new private operator, Railitaly. The first train rolled out in December 2003, and 2004 was a preparation year needed for buying and standardising locomotives as well as accumulating personnel. The company is engaged in fast development in the Italian market, starting from international transport via Switzerland. SBB Rail Cargo Italia currently has around 150 employees, of whom 60 are locomotive drivers.

Changes and trends in labour market and working conditions

Analysis of industrial relations Typology of actors In Italy, it is possible to identify two categories of rail workers: • the Ferrovie dello Stato group currently has around 100,000 employees which

constitute the working category of the ferrovieri (rail workers); • rail workers of local rail companies are employed as autoferrotranvieri (local

transport workers); there are around 115,000 autoferrotranvieri. Of those, some 5,000 are active in rail transport.

Both categories are covered by a national collective agreement, which is discussed by the trade unions representing the workers. There are three trade unions active in the rail sector in Italy: • CGIL; • CISL; • UIL. Each has a specific transport branch which is then divided in different sectors (for example, ferrovieri, autoferrotranvieri, air). In addition, there are about 15 minor (sometimes very small) trade unions, often dedicated to one specific category of workers. The main trade union organisations which are present in FS Spa are: • Comu, the engine drivers’ independent union affiliated to Orsa; • Fast, the independent union organisation for the transport sector affiliated to

Confsal; • Filt, the union federation for the transport sector affiliated to CgilCGIL; • Fisafs, a sectoral independent union affiliated to Orsa; • Fisas, an independent trade union formerly affiliated to Cisal and now to the Orsa;



• Fisast, an independent trade union affiliated to Cisas; • Fit, the union federation for the transport sector affiliated to CislCISL; • Sapec e Sapent, two independent unions which mainly represent ferry workers and

are affiliated to Orsa; • Sma, the independent engine drivers'’ union affiliated to Confsal; • Ucs, the station masters'’ union affiliated to Orsa; • Ugl trasporti, the independent union federation for the transport sector affiliated to

UGLgl; • Uiltrasporti, the union federation for the transport sector affiliated to UILil. The presence of several independent and autonomous trade unions is particularly relevant. These trade unions present different membership levels and also play different roles in the industrial relations system at company level. Some of them have signed collective bargaining agreements. Others did not, but they have important representation on RSU (the local and plant-level representative bodies), as is the case for Comu. Other unions are relevant for specific sectors of the workforce (drivers, station masters, ferry workers). Finally, some unions are not accepted by the FS group as collective bargaining actors. The role of autonomous and professional unions is particularly important in explaining the high conflict rate in this sector. In general, the presence of autonomous unions may considerably weaken union cohesion, due to the strong competition that may arise among different trade union organisations. In order to avoid this, a tripartite agreement was signed among government, trade unions and employer organisations of the transport sector in 1998. The agreement aimed at establishing a system of ‘concertation’ (information, consultation and dialogue) and introducing a new legislative framework looking at strike rights, focusing on the ‘announcement effect’, i.e. the disruption created by a strike call, even if the strike itself is cancelled in the end. The effectiveness of the pact is questionable. The overall union density in the Ferrovie dello Stato group is around 77%. The last elections of the local representative bodies (RSU) at territorial level took place in November 2003. Participation has been high, at 73% of the 108,000 who have the right to vote. Filt-Cgil has taken 35% of votes, Fit-Cisl 26% and Uil-trasporti 13%. The RSU’s responsibilities includes the definition of employment needs, the means to be used for meeting such needs (internal mobility, retraining and recruitment) and the definition of working time regimes. Higher-level collective bargaining (national and regional or compartmental) sets the general framework; then it is local and decentralised bargaining which has to implement it and find specific solutions. Employer organisations in the Italian railway sector are as follows. • In the case of ferrovieri, the Ferrovie dello Stato group was represented in the last

national agreement, signed in April 2003, for the first time by AGENS. AGENS is a body of Confindustria (the confederation of Italian industry), representing the interests of the railway sector. At the moment, AGENS members comprise companies of the Ferrovia dello Stato Group and a few companies active in railways services (wagon-lits, restaurant services,).

• The umbrella organisations of public transport operators Asstra and ANAV in the case of autoferrotranvieri. In many cases (for example ATM Milano), national agreements are integrated with companies’ agreements.



Collective bargaining Industry/frame wage contracts and according agreements Certainly one of the most significant aspects of the reform of the Italian railway system has been the adoption of the first industry-wide national agreement, structured according to the contractual model introduced by the agreement of 23 July 1993. In compliance with the contractual structure defined by the agreement of 23 July 1993, the railway sector agreement also has a duration of four years in terms of its normative provisions, while the economic part is renewed every two years. Besides extending the two-tier bargaining structure to the railway sector, the agreement has other pioneering features, such as innovations for seeking to overcome a series of rigidities and complexities which characterised the FS agreement, relating both to the organisational structure and work organisation, and to bring regulations closer to those which apply in the other sectors of the Italian economy. The main innovations introduced by the new agreement are: • a new job classification system; • the introduction of flexible forms of work; • simplification of the method for calculating pay; • as regards working time, the reorganisation of the overtime system and the

introduction of greater flexibility into shift work; • finally, in order to encourage a participative system of industrial relations in the

sector, the creation of joint committees (a national observatory and an equal opportunities committee) and information and consultation procedures at both national and company level.

The railway sector agreement has therefore become an important regulatory framework for all companies providing railway transport services, including those intending to enter the sector after its process of liberalisation. Company-specific contracts and according agreements Concerning the ferrovieri group, an important step forward has been the collective national agreement signed in April 2003. For the first time, the counterpart has been not Ferrovie dello Stato, but AGENS. This is the effect of the changes in the railway sector, where there is no longer a monopoly. In future, this contract could also be applied by new companies that will enter the Italian freight or passenger market. The contract for the workers of the Ferrovie dello Stato group is therefore now on two levels: a national agreement with AGENS/CONFINDUSTRIA and company agreements for the companies of the Ferrovie dello Stato group. The national agreement signed in April 2003 is also important because it contains some flexibility, such as temporary and internal work, as well as the rules for the transfer of workers between different companies. The economic part of this contract was renewed in June 2005. According to the agreement, rail workers (ferrovieri) will have an average gross increase of €100 and a €320 one-time payment to cover the six-month period between expiration and renewal. Besides the economic improvements, the agreement also involves some aspects of work organisation in order to improve the FS productivity and support the development plans:



• The FS group will reinternalise maintenance of rolling stock material in order to fully exploit internal workshops. Trade unions agree to consider changes in working time and personnel reorganisation in order to achieve more efficient productivity and flexibility.

• The FS group will complete the implementation of train protection system devices

SCTM and SCS within 2007 and will reconsider the introduction of VACMA vigilance devices. FS has the long-term goal to increase the productivity by adopting one train driver on all services, as in the rest of Europe; at present, long-distance services, freight services and some regional services are realised with two train drivers. Historically one train driver was an exceptional solution in Ferrovie dello Stato (less than 5% of the services, and only in regional transport). Since 2002, one train driver is quite common in regional transport, even if it is still regulated, depending both on track characteristics and on rolling stock. The adoption of the VACMA vigilance devices should be seen as a transitory solution to speed up the introduction of one-driver services.

• The parties agree to find solutions capable of increasing the efficiency of the

freight sector. The Trenitalia freight sector is making losses and is losing market shares due to both the lack of competitiveness with road transport and the increasing concurrence inside the rail sector. A comprehensive reorganisation should be achieved concerning both the commercial offer and the internal productivity.

Autoferrotranvieri On the one hand, the national general agreement for the category of the autoferrotranvieri is less complicated than that of the ferrovieri. Rail workers of local companies work mainly on non-RFI secondary lines, with short distances, low speeds and homogeneous traffic. On the other hand, this situation is changing mainly because of: • new investments and increasing services; • an increasing presence of local companies on RFI lines; • the oncoming reorganisation of the public transport sector, which has not yet faced

a reorganisation and privatisation of industrial relations like the rail sector has. This is because the sector is still de facto a protected market closed to concurrence.

In the coming years this situation will gradually change, for the following reasons: • the legislative context has already been modified in the direction of more

concurrence; • the deficit of the companies and its fragile economical situation; • the increasing internationalisation of public transport. The opening of concurrence will have effects on industrial relations. Trenitalia envisages the possibility of creating joint venture companies together with local authorities. The current Autoferrotranvieri national agreement was signed in December 2004. This is the first Autoferrotranvieri contract signed without a government intervention in the last 20 years. It includes an average wage increase of €105 per month. The more delicate aspects are probably the restructuring of the sector and company reorganisation, which involves all aspects of the employment relationship. The last



collective agreement involved three main points: new recruits, new forms of employment and business transfers. • New recruits:

In the past few years, public transport workers have been hired at a very low point on the pay scale (point 134, each point worth about €4.50 a month) and remained there for nine years. About 12,000 workers are currently in this position, earning gross monthly pay of €1,600 compared with an average of €2,100 for those with longer service. The new agreement raises the entry level (to point 140) and reduces the period to which it applies by one year. From the fourth year of service, workers will receive an additional monthly payment of €18 until the eighteenth year of service, when they will automatically reach point 158.

• New forms of employment:

The agreement regulates the use of the new forms of employment provided for by the 2003 ‘Biagi’ labour market reform law. The employers accepted trade union demands to lay down strict rules for the use of these new forms of employment and prevent the use of those not seen as consistent with the characteristics of the public transport sector. ‘On call’ jobs may not be used and temporary agency work may be used only in exceptional cases where fixed-term contracts cannot be used instead. Job-sharing and telework may be used on a voluntary basis among employees on open-ended contracts. All these forms of employment together may apply to no more than 2% of the total workforce. Fixed-term contracts may have a minimum duration of 30 days and a maximum duration of 12 months, which may be extended for another 12 months. It will be possible to make recourse to ‘vertical’ (comprised of working days similar to those of full-time workers, but with the number of working days reduced), ‘horizontal’ (with reduced hours every day) or ‘mixed’ part-time work. In the latter case, the agreement provides for the possibility of up to two hours of ‘supplementary work’, e.g. overtime, a day (or 20% of the annual working time). The number of workers on fixed-term and part-time contracts cannot exceed 35% of open-ended employees in companies with up to 50 employees, 25% in companies with 50–500 employees and 20% in companies with more than 500 employees. Workers who shift by request from full-time to part-time work are taken into account in these percentages. The agreement also provides for the possibility of using ‘work-entry’ or ‘reintegration’ contracts, but companies that do not retain at least 70% of workers hired on such contracts once they expire will no longer be able to use these contracts.

• Business transfers:

In the event of the transfer of one part of a company to another employer, the latter is obliged to maintain the same pay and conditions enjoyed by the workers before the transfer. In future, further harmonisation of pay and conditions may be dealt with by company-level negotiations.

The two national agreements (ferrovieri and autoferrotranvieri) have a similar organisation, where ferrovieri is more advantageous (see the comparative table further below). The differences are both in the weekly working time (36 hours with the FS group, 38 for the ferrovieri and 39 for the autoferrotranvieri) and in the regulation of the working activities (breaks, transfers, shifts regulations). This is clearly stated by the situation of Metronapoli, a joint company created by Trenitalia and the local transport company in Napoli ANM to manage the underground lines. The ex-



Trenitalia workers have the more convenient agreements, whereas the ex-ANM workers have the autoferrotranvieri agreement. The recently established freight transport companies have adopted different approaches: • Railion Italia has chosen the ferrovieri national collective agreement; • SBB Cargo Italia has chosen the autoferrotranvieri national collective agreement; • Rail Traction Company does not have a national collective agreement. Employees of the new freight transport companies are mainly drivers, so the challenge is to increase the low productivity due to the low number of travelled hours: a Trenitalia Cargo driver travels in average 14 hours a week against the 35 hours a week of a DB driver in Germany. Rail Traction Company is able to reach an average of 20 hours a week. Industrial conflicts After a major step forward was taken with the signing of the first agreement for the railway sector, industrial relations deteriorated in late 2004 and early 2005. Following a tragic crash between two trains on 7 January 2005 on a single-line railway stretch between Bologna and Verona (in the north of Italy), in which 17 people were killed, Filt-Cgil, Fit-Cisl, Orsa, Sma-Confsal, Ugl Ferrovie and Uiltrasporti-Uil staged a 24-hour strike on 11 February and announced another strike to be held in the month of April. By means of these forms of protest, the unions sought to highlight a series of critical issues in various areas of the railways sector. • Safety: The unions called for investments in technology in order to improve an

aspect of crucial importance for the sector as a whole. • Breaches of agreements: The unions maintained that the FS group was

inconsistently interpreting provisions in the work contract concerning holidays, working hours, public holidays, rest periods and bonuses; the unions also reported breaches of agreements in regard to information and consultation procedures on the outsourcing of activities by companies in the group.

• Industrial relations: The unions alleged that the FS group had refused to conduct joint and transparent negotiations, its explicit intent being to encourage individual bargaining.

• Renewal of the economic part of the agreement: This part of the contract had expired three months previously and the FS group had still not begun talks with the unions.

• Reorganisation of the FS: According to the unions, the targets set by the new development plan did not correspond to decisions taken by top management. The unions complained in particular about the company’s refusal to engage in constant and transparent dialogue.

Views of partners on EU regulation and dialogue The trade unions have criticised current industrial relations and the development of social dialogue in the railway sector. They maintain that industrial relations in the sector are increasingly characterised by unilateral decisions on the part of the FS companies without the involvement of workers in the process of reorganisation of the group. In particular, the workers’ representatives accuse the FS top management of unilaterally deciding initiatives which directly concern the organisation of work, for



instance, the decision to outsource some of the group’s activities, especially in the maintenance sector, without consulting the unions about the effects on employment levels and personnel management. Moreover, the sectoral unions affiliated to the main trade union confederations (Cgil, Cisl and Uil) have asked the government to assess and make the necessary adjustments to the liberalisation process of the sector brought about by successive legislative actions (Presidential Decrees 277/1998 and 146/1999, and the more recent legislative decree 188/2003) which have transposed and interpreted the relative European Directives (95/18/EC and 95/19/EC; 2001/12/EC, 2001/13/EC and 2001/14/EC). For the unions, the railway system is being liberalised without adequate rules to protect the workforce and without forms of reciprocity with the other countries of Europe. This has given an unfair advantage to the foreign groups controlling the new companies already operating in goods transport. The most representative unions in the sector likewise criticise the liberalisation of regional transport: in this case, too, the failure to define forms of reciprocity with the other European countries has given significant advantages to the non-Italian companies which compete for licences to provide services. In addition, the chief executive of the FS group, Elio Catania, although emphasising that liberalisation is improving the system, has pointed out that ‘today there is no symmetry in Europe: France and Germany, for example, resist liberalisation, while we are among the most advanced countries in this regard. Despite the lack of reciprocity, the FS group will press ahead with internationalisation, concentrating its efforts on Germany and Eastern Europe.’ Analysis of the labour market Relation between nationwide total employment and railway employment The recent developments and the present working conditions of the ferrovieri are strictly connected with the transformation and reorganisation of Ferrovie dello Stato. Starting from 1980, the company has been transformed from a public administration into a stock-holding group that has to operate in a competitive market. It is possible to see two main aspects in this process: • the transformation of the organisational structure with the creation of new

companies; • outsourcing of non-core business. The most direct consequence on employment has been the constant reduction of employees, starting in 1988. In order to achieve this goal, three main policies were adopted: the almost total block of turnover; the transfer to other government administrations; but mainly an anticipated retirement scheme.

The main turning point was the national collective agreement for rail workers 1990–1992. Here, for the first time, the number of employees was not determined a priori but calculated on the basis of the internal needs.



Figure 20: Relation between national and railway employment

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

1996 1997 1998 1999 2000 2001 2002 200320,000,000

21,000,000

22,000,000

23,000,000

24,000,000

25,000,000

26,000,000

27,000,000

28,000,000

29,000,000

30,000,000

employment railways (official statistics) total employment (official statistics)

0.56

%

0.65%

0.55

%

0.53

%

0.50

%

0.48

%

0.46

%

0.44

%

0.44

%

Relation between railway- and total-employment

Source: Ministero delle Infrastrutture, 2003; ISTAT, 2002–2003

Figure 21: Development of railway employment, FS group 1990–2002

186,688

1990

44,955

6,439

9,233

3,2043,196

4,207

12,856

1993 1994 1995 1996 1997 1998 2002

Tota

l red

uctio

nof

45%

Source: Ministero delle Infrastrutture, 2003; ISTAT, 2002–2003 (calculations by SCI Verkehr GmbH) The reorganisation process has mainly interested the Ferrovie dello Stato group and not yet other local players. Here the small reorganisations have been compensated by a small increase in traffic. Therefore, in the last decade the difference between railway employment and FS group employment has remained stable at around 5,000 working units. More than 90% of them can be attributed to the local passenger transport companies; less than 10% (slowly increasing) belongs to the new established freight players.



Relation of railway core employment, outsourcing employment and reduction of employment

Figure 22: Core employment and outsourcing in the railway sector

4.8%5.1%

3.9% 4.0% 4.8%4.9%

5.3% 4.7%

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

1996 1997 1998 1999 2000 2001 2002 2003

employment railways (official statistics) share of outsourcing employment

Source: Ministero delle Infrastrutture, 2003; ISTAT, 2002–2003 (calculations by SCI Verkehr GmbH) Relation of railway core employment and main players

Figure 23: Railway employment and main players

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

1996 1997 1998 1999 2000 2001 2002 2003

FS group employment employment railways (official statistics) Source: Ministero delle Infrastrutture, 2003; ISTAT, 2002–2003



Figure 24: Development of railway employment, FS group 1996–2003

125,800

1996

-1,200

1997 1998 1999 2000 2001 2002 2003

Tota

l red

uctio

nof

16%

-4,200

-4,400

-4,400

-1,600

-3,000-1,000

Source: Ministero delle Infrastrutture, 2003; ISTAT, 2002–2003

Employment structure and composition of the workforce In order to provide reliable information about the situation of different Italian companies, the study focuses on Trenitalia, FNME and Rail Traction Company. Of course, these three companies are completely different in terms of employed people, role in the Italian market and historical background. In the first phase of the reorganisation (between 1992 and 1999), the FS turnover had been almost blocked to achieve an increase of productivity by reduction of employees. In the last years, the continuation of the employment reduction has been accompanied by an increased turnover in order to provide the FS group with the new employment profiles required by the market evolution. Total new appointments Between 2001 and 2003 (three years), 18,818 workers left the FS group; in the same period, the FS group employed 10,210 persons. In only three years there has been an 8% reduction, and in the meantime 10% of current employees have been employed. New people are assumed in most cases with Contratto di Formazione Lavoro (a two-year contract for people between 16 and 32 years). Most of them are then confirmed in open-ended full-time contracts. The main changes in Ferrovie Nord employment happened between 1996 and 2000. The management of the company had started to recognise the railway sector’s potential and the necessity of a thorough modernisation of the company structure in order to be able to take advantage of it. In four years there has been an 8.5% decrease in employment: 661 people have left the company and 485 have been employed. About 25% of employees have changed within four years. Rail Traction Company was created in 2000 and currently has 68 employees and 30 people with co-operation contracts.



Quota part-time and shift workers There are still only a few part-time workers in the FS group (around 1% of the workers in the FS group). Part-time is more prevalent among the newest employees and is expanding in two forms: • horizontal part-time is increasing in the offices; • vertical part-time is present in the train services. Sixty-six per cent of part-time workers are women. Distribution of male and female employees In the FS group, female employment in the railway sector is traditionally low. The first significant employment of women started in the 1980s, mainly in the tasks that required contact with customers (ticket offices). In the last number of years there has been a noticeable employment of women with high technical qualification. Women amounted to 6% of total FS employment in 1991, 10% in 2001 and 10.9% in 2003. • Women were less affected by the reduction of employment: between 2001 and

2003, 1,204 women left the FS group (6.4% of total dismissal), but in the same period the FS group employed 1,688 women (16.5% of total employment).

• The number of employed women is naturally increasing, despite the lack of a specific policy. New employment parameters, like educational level and knowledge of foreign languages, are alone facilitating the employment of women.

As a result of this historical situation, women are younger and not yet represented in management, which is still mainly comprised of people with many years of service. 12.8% of employed women are under 30 years of age, 20% are between 31 and 40 years, 49.4% are between 41 and 50 years and 22.3% are more than 50 years of age. Compared to the total number of employees, women comprise 14.6% of workers below 30 years, 16.6% of workers between 31 and 40, and 10.9% of workers between 41 and 50 and 7.2% of workers over 50 years. Their presence is relevant in offices, though there are few in the train services. Women make up 60% of lower levels, 10% of the middle level and 7% of management. 10.4% of workers with open-ended contracts are women, 29.4% of fixed-term contracts are women and 66.5% of part-time contracts. However, 90.7% of women are employed with open-ended contracts, 0.5% with fixed-term contracts and 3.8% with part-time contracts. Average salaries of female workers are between 80% and 90% of male workers in comparable positions. This is explained by the minor overtime and the minor presence of women in the most important and best-paid positions within each sector. Since the national contract 1987–1989, the FS group has a CPO (‘Comitato Pari Opportunita’) equal employment unit. In the FS group, CPOs are now organised into 15 territorial units: they offer assistance and organise several projects and initiatives in favour of female occupation. Until 1990–1992, FNME was characterised by a very high presence of male employees. The few women were employed in central offices or at stations. Their workplace was at risk in the reorganisation process. In order to avoid this, FNME has actively promoted the qualifications of women and has also promoted itself as an



equal opportunities environment. As a result, in 1995 FNME employed the first ten women train drivers. Women now constitute around 17% of the company’s employees. Rail Traction Company employs eight women. Employment per age The almost complete block of turnover in the 1990s has provoked an increase of the average age of employees. Only 9% of employees are below 30 years old, 12% are between 31 and 40, 47.2% are between 41 and 50 and 31.8% are above 50. The table below describes the evolution of the internal fields of activity during the reorganisation process:

Figure 25: Development of educational level

0%

20%

40%

60%

80%

100%

1990 1993 1994 1995 1996 1997 1998 2003

Managers Offices Stations Trains Drivers Ferries Technicians

Source: ISFORT, 2005 Provenance No information. Educational level and qualifications FMNE: 328 out of 425 have been employed with Contratto di Formazione Lavoro. Of these 328, 325 finished secondary school or university. In just a few years Ferrovie Nord changed the composition of its employment: • 1996: 1,344 compulsory school and 667 secondary school or degree; • 2001: 1,112 compulsory school and 873 secondary school or degree. Rail Traction Company employees eight people with a university degree. Field of activity FS: Analysing this data, it is easy to note that: • the effects of the employment reduction have been stronger among the technicians

and station personnel; • the number of managers has increased even in absolute numbers and has reached

1% of the total employment;



• a percentage increase has taken place also in offices and train drivers, where the decrease has been under-proportional.

Rail Traction: 65 employees are locomotive drivers. Of them, 55 have a work contract and 10 a co-operation contract. Monthly income See above. Analysis of working conditions Training and learning opportunities The working market does not offer professional profiles suitable to be immediately employed in the railway sector. The only relevant exceptions are locomotive drivers coming from the Italian army. Therefore, railway companies had, and still have to, create these profiles through internal schooling and training. This is also needed in order to let them obtain the qualifications stipulated by law. For example, the training of a train driver takes around eight months, including formal training and practical training accompanying a driver. In the last 10 years, there has been a rapid increase in learning opportunities for employed people, aiming at qualification of their professionalism in order to allow them to meet new company standards (new technologies or customer service) or to employ them for a different function. The FS collective bargaining 1994–1995 introduced a compulsory minimum of five formation days per year for each employed person. In the meantime, the FS group quickly realised that if the reduction of employment had positive effects on productivity, then on the other hand, in order to improve productivity it was necessary to also work on the quality of the employed persons. Therefore, a specific Department for internal communication and company culture (Direzione Comunicazione Interna e Cultura d’Impresa) has been created, with the task to match the internal communication and training to the needs of the company and of the employees. Previously, the information was circulating through the company only informally and mainly through the trade unions. The goal of the new department was to change the way of thinking and of working of several thousand people in order to achieve customer and task orientation. Some examples of these activities are: • ‘call-centres’ and ‘supporting teams’ for the implementation of the new

organisational structure based on divisions; • projects involving employees in work innovation and improvement, both under

technical and organisational aspects; • special schemes for train drivers in order to establish a two-way communication

flow with this crucial part of the workforce; • involvement of some 3,500 people in drafting a company ‘charter of values’; • promotion of new managerial attitudes and practices among senior and middle

management through training initiatives. Since 1997 the management has had a different contractual agreement.



In this context, the monthly income scheme has also been reviewed: an increasing part of it (20–50%) was composed of indemnities depending on the work actually done as well as by premium schemes. The same can be said for the promotion systems: the transition to upper levels was more or less automatically linked to years of service. Now increasing importance is put on individual work assessments by managers. Working time Comparing the contractual working times and income with the Italian standard, the railway sector has favourable working conditions. Table 3 shows the ‘internal’ differences between ferrovieri and autoferrotranvieri.

Table 3: Differences in working time and income in sectors

Contractual working time 2001 (hours)

Contractual income 2001 (€)

Ferrovie dello Stato 1,610 22,255 Regional railways (autoferrotranvieri) 1,757 21,479

Public administration 1,458 22,381 Industry (average) 1,736 20,505

Source: ISTAT 2001 Table 4 shows that since 1996 the income increase in the FS group has been lower than the Italian average. The same cannot be said for the regional railways sector.

Table 4: Increase of income in railway sector 1995 (=100) 2001 FS group 100 106.9 Regional railways (autoferrotranvieri) 100 114.5 Average Italy 100 116.5

Source: ISTAT 2001 The privatisation process has affected the way of working, but has not significantly changed the working hours and the main social and health rights. Some examples are: • Weekly average working time in the FS group is 36 hours. The average day shift

for train drivers is eight hours during the day and seven hours between 00.00 and 05.00. The break between two following shifts is 16 hours (18 hours if a night shift). For train crew, the average shift is nine hours during the day and eight hours at night.

• The maternity and paternity scheme foresees 100% retribution in the first month, 80% in the second month and 30% for the following four months. Hence the retribution is guaranteed for the first 30 days of illness of the child up to its third year of life.

• The FS collective bargaining guarantees a free travel card for all employees as well as for out-sourced employees with a minimum of five years of work that are not working for a concurrent railway company. This measure is extended to the partner and to children up to 25 years old.



• The DLF (Dopolavoro Ferroviario) is explicitly recognised in the collective bargaining as an association aiming at promoting social and cultural life. Recreational centres are present all around the national territory.

• The FS social protection system has been recently enriched with a specific rent fund, Fondo Sanitario Integrativo Aziendale FS that offers favourable conditions (regional rail workers have the Priamo fund).

The regional railway workers all together have similar working conditions, with differences mainly due to the internal organisation of each company. One of the main generational changes is the rent scheme. Anticipated rent has been a way to reduce employment in the railway sector in the last 10 years. The national rules are now aiming at introducing the general rule of 65 years for men and 60 for women. A complicated progressive system still allows older employees to retire earlier. Safety at work The reorganisation of the railway sector is not having a negative impact on safety at work. The number of typical accidents per million of train kilometres is low if compared with the European average and has decreased in the last years: 0.31 (1998); 0.28 (2001); 0.20 (2003). Concerning the FS group, both the number of deaths (86 in 1999; 75 in 2001; 70 in 2003) and hurt (107 in 1999; 70 in 2001; 72 in 2003) is stable/slowly decreasing. In 2003, regional railways registered 14 dead and 177 hurt, mainly in connection with accidents at level crossings. In 2003, new freight companies registered one dead and two hurt. Health systems No information. Social protection No information.

References

Asstra, Annuario delle imprese associate Asstra 2003, Rome, 2004. Görg, H., ‘Does outsourcing increase profitability?’, in Economic and Social Review, Vol. 35, No. 3, 2004, pp. 267-288 IRPET (Istituto Regionale per la Programmazione Economica della Toscana), Uno studio sulle imprese multimediali e sulla nuova realta' delle ferrovie, Pisa, 2004. ISFORT (Istituto Superiore di Formazione e Ricerca per i Trasporti), Le politiche per l’integrazione lavorativa delle donne e la promozione delle pari opportunità nel settore ferroviario in Europa, Final report, Rome, 2005.



ISTAT (Istituto Nazionale di Statistica), Lavoro e Retribuzioni Anno 2001, Rome, 2001. ISTAT, Lavoro e Retribuzioni Anno 2001, Rome, 2005. ISTAT, Statistiche dei trasporti Anno 2002–2003, Rome, 2005 Ministero delle Infrastrutture, Conto dei Trasporti e delle Infrastrutture 2002, Rome, 2003. Ministero delle Infrastrutture, Conto dei Trasporti e delle Infrastrutture 2003 con elementi informativi per l'anno 2004, Rome, 2005. Railion Italia, La nuova societa' ferroviaria per il trasporto merci sul mercato italiano, Alessandria, 2005. Rete Ferroviaria Italiana, Argomenti n.1, Rome, 2003. SCI Verkehr GmbH, European railway freight transport markets, Cologne, 2005. SCI Verkehr GmbH, ‘Database railway technology’, 2005. Trenitalia Spa, Bilancio 2003, Rome, 2004. Trenitalia Spa, Carta dei Servizi 2005, Rome, 2005.

Annex: Note on methodology

The level of employment in the railway sector is a very important indicator of the consequences of the EU legislative framework governing the railway sector. However, restructuring in this sector has resulted in employment in railway activities being outsourced to sectors other than the statistical definition of the railway sector (NACE Code 60.10). Thus, the employment impact is not measured simply by examining employment levels in what is formally defined as the railway sector – an estimate of the number of jobs that have been created in other sectors must first be obtained. The impact of restructuring on employment in other sectors is estimated by utilising the production data in the national accounts, where the value of production in railways may be expressed as the sum of value added (performed in-house) and the purchase of intermediates (purchased elsewhere). Changes in the ratio of value added and intermediate purchases over time provide a money value indicator of outsourcing trends (Görg, 2004, pp. 267-288). This is calculated for each country in the study using input–output tables. In order to calculate the change in employment that corresponds to shifts in the value ratio, average work coefficients are used.



Methodological process – calculation of total railway employment

definition and accumulation of economic indicators / data:• production value• value-added• purchase of intermediates

ratio calculation and time series analysis:• ratio between value-added and production value

ratio between purchase of intermediates and production value

quantification of changes in production value due to outsourcing-induced changes in ratio betweenpurchase of intermediates and production value

transformation of changes in production value into changes in employment in other economic sectors of the national economy

calculation of balance between employment changes in rail operation (NACE 60.10) and outsourcing-induced employment changes in other economic sectors

definition and accumulation of economic indicators / data:• production value• value-added• purchase of intermediates

ratio calculation and time series analysis:• ratio between value-added and production value

ratio between purchase of intermediates and production value

quantification of changes in production value due to outsourcing-induced changes in ratio betweenpurchase of intermediates and production value

transformation of changes in production value into changes in employment in other economic sectors of the national economy

calculation of balance between employment changes in rail operation (NACE 60.10) and outsourcing-induced employment changes in other economic sectors


The results of the estimations are summarised using a survey of the relevant indicators. A balance of the employment will be shown, accounting for the reduced number of workplaces in the rail operation sector and the employment changes in other sectors. The methodological approach developed aims at combining a scientific-substantiated state of knowledge and simplicity of statistical solution. The methodology is based on disaggregated data (national accounts), the compilation of which demands thorough research for each of the countries selected, since data is not always readily available at EU level.


Profile of the rail transport sector in Italy

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