relazioneCae_finale_ ENG

Towards the establishment of a cross-‐sector EWC in the Cremonini Group Group structure and trade union relations
Partners: With the financial support of the European Union The sole responsibility for this publication lies with the author. The Commission is not responsible for any use that may be made of the information contained. Grant agreement no. VS/2012/0459 " Towards the cross-‐sector EWC of the Cremonini Group: networking of worker representatives for exchange and training" Budget heading 04.03.03.03 -‐ Information consultation and participation of representatives of undertakings European Commission -‐ Employment, Social Affairs and Inclusion DG 3
Contents Introduction – research objectives and methodology ................................................................................ 4 1. The Cremonini Group – history and ownership structure ...................................................................... 5 1.1 Main development phases.......................................................................................................... 5
1.2 Current situation ........................................................................................................................ 6
2. The three main business areas – Production, Catering and Distribution .............................................. 14 2.1 Production ................................................................................................................................ 14
2.1.1 Companies ........................................................................................................................ 14
2.1.2 Plants and workers ............................................................................................................ 16
2.1.3 Characteristics of work and of industrial relations ........................................................... 17
2.2 Catering.................................................................................................................................... 19
2.2.1 Companies and workers .................................................................................................... 19
2.2.2 Characteristics of work and of industrial relations ........................................................... 20
On board catering .................................................................................................................. 20
Commercial catering .............................................................................................................. 23
2.3 Distribution .............................................................................................................................. 24
2.3.1 Companies ........................................................................................................................ 24
2.3.2 Characteristics of work and of industrial relations
....................................................................................................................................................... 26
2.4 Centralized activities ............................................................................................................... 27
3. Conclusions ......................................................................................................................................... 28 Bibliography ........................................................................................................................................... 29
4
Introduction – research objectives and methodology This work has been developed in the context of the European project “towards the establishment of a cross-‐sector EWC in the Cremonini Group” which has the objective of gathering and creating a system out of a wide array of information necessary to start the process for the establishment of an EWC in the Group. For this reason, it was necessary to trace the structural characteristics and the industrial relations of the Group itself. In particular, since the Cremonini Group is characterized by a complex structure and by a transnational nature, to establish an EWC it was necessary to comprehend and highlight as much as possible how this group is composed, in terms of numbers, typology of companies which are part of it, ownership, business areas, market environment, production plants, used brands and lastly, of course, characteristics of employment and of industrial relations. Such operation, which is not easy considering the complex articulation being analysed, has been made increasingly complex by the fact that the Cremonini Group is characterized by a constant variability of its perimeter, because on one hand it distinguishes itself for a very active growth through acquisition, on the other an important part of its turnover comes from concession activities, in particular in the case of catering on board trains. Activities in concession are acquired through the participation to tenders and maintained, when awarded, for relatively short period of time, of around 4 years. The activities awarded through tenders are of extreme importance to the Group, as we will see in the report, therefore we may understand how the Cremonini Group is characterized by a constant structural variability which, depending on the results of the tender, has inevitable strong repercussions on the companies that are part of the Group and hence on the employment levels and quality of work. Regarding research methodology, two different paths have been followed. Firstly, a desk analysis was conducted, which included gathering information on the structure of the Group through the analysis of public documents produced by the company, such as the consolidated balance, or by third party institutions , and by gathering information on the internet, mainly from company sites, and from the Chamber of Commerce. At the same time, a qualitative research activity was conducted, including interviews to experts, a workshop for each business area in which the Group operates, and a focus group on Production. All the data and information gathered were processed and systematized in the current report, organised as follows. 5
Chapter 1 offers a historical and present day background of the Group as a whole, describing the evolution and main stepping stones, and presenting some structural data an recent changes. In particular, in the first chapter we present the ownership and organisational structure together with the most important characteristics of the three individual business areas. In Chapter 2 a detailed description of the individual areas is given: production, that is butchering and processing of bovine and pork meat, on board and commercial catering, and distribution. For each of the three areas it will be described which companies are present, the existing plants (where relevant), the organisation in the various countries (even this when relevant) and the main issues the areas are facing in terms of market, employment levels and industrial relations. Lastly, in Chapter 3 as conclusion, a short description of the Group following the new findings will be given. 1. The Cremonini Group – History and ownership structure 1.1 Main development stages1 The origins of the Cremonini Group date back to 1966, with the creation by Luigi Cremonini, his brother Giuseppe and Luciano Brandoli of Inalca Ltd. for the processing of bovine meats. In 1973 the company was transformed in an Inc. and in 1981 Inalca separated its industrial complex creating Dival -‐ Distribuzione Vendite Alimentari , and changing its denomination in CA-‐FIN – Castelvetro Finanziaria. Dival in this occasion takes the denomination of IN.AL.CA – Industria Alimentare Carni. 70s – The Group develops its distribution organisation acquiring and starting up some subsidiaries in the sector of bovine meats processing, in addition to Europork, for the processing of pork meat and MARR, a company operating in the food distribution sector and acquired by the Montedison Group in 1979. 80s – Montorsi is bought, which operates in the cold cuts sector, in addition to the F.lli Belletti, Alceo Blasi and Cobral, always in the same sector. In 1987 Montorsi acquires the last two companies becoming Montorsi Blasi. In 1985 the Group enters the catering sector in the fast food segment, starting two chains of restaurants called “Italy&Italy” and “Burghy”, in addition to acquiring an already operating chain in the sector called “Quick”. 90s – In the 90s Agape, a company of the group operating in the catering for companies sector, acquired by CA-‐FIN in the 80s, starts managing catering on board the trains of the State Railways. The presence in the bovine meat sector is increased through the acquisition of F.lli Miragoli (meat processing) and A.C.S.A.l (canned meat – Montana brand). The Ultracocchi carni company (operating in the bovine meats sector and acquired in 1988) starts the construction of the Ospedaletto Lodigiano (LO) plant, operative since 1999. CA-‐
FIN pulls out of the fast food sector selling the “Burghy” chain, counting 96 restaurants in 1995, to McDonald’s Corp., allowing the latter to affirm itself in the Italian territory and reaching an agreement with McDonald’s regarding the hamburger supply. In 1996 Luigi Cremonini acquires, directly and indirectly, absolute majority in CA-‐FIN and in 1998 almost the entirety of its capital. In 1998, CA-‐FIN exits the market of pork meat and starts directly managing catering activities through the incorporation of Agape and other subsidiaries in the sector, and changes its original name in Cremonini S.p.A. The same year, Cremonini shares are admitted In the stock exchange, which will be revoked in 2008. year 2000 – In July 2000 a “joint venture” agreement was signed with the American Roadhouse Grill Inc. for the opening of a steakhouse chain in Europe. In April 2008, the Cremonini Group reached the agreement on the sale of a minority share of 33,3% of MARR to a pool of institutional investors. During the 1
Main source for this section is Research and Study – R&S -‐ Foro Buonaparte 10, Milano
6
same year, the Cremonini Group acquired the plant of former Ibis in Busseto (pr) and the plant of the former F.lli Traversi in Postalesio (So) both operating in the cold cuts sector. Always in 2003, the Group acquired 50% of Moto (now Chef Express) operating in the sector of motorway catering for 7.7 million Euros (the remaining 50% of Compass Group International B.V. Had been acquired in May 2006 for 14.6 million Euros). In March 2004, the Cremonini Group acquired from the Succi family 100% of Sogema (now Sfera), main operator in Piemonte and Valle d'Aosta regions in the sector of distribution and food services. In 2005 100% of Infer s.r.l was acquired, a company operating under the “Moka” brand in the Roma Termini train station and holder of concessions for the train stations of Milano Centrale and Napoli Centrale. In 2005 Cremonini has brought its possession of MARR to 58%. In March 2008, the Cremonini Group and the Brazilian group JBS (main global operator in the bovine meat sector) reached an agreement which brought to the acquisition by JBS S.A of 50% of Inalca (after this Inalca JBS) through capital increases and shares acquisition for a total amount of 218.9 million Euros. In the following month of May, Luigi Cremonini, through the newly reconstructed Cremonini Investimenti s.r.l, launches a takeover bid on the totality of the Cremonini shares in circulation (around 30.3% of the capital) for the price of 3 Euros per share; after this operation, Luigi Cremonini has increased his level of control, directly and indirectly, to 95.82%, for a total amount of 95.8 million Euros. In July of the same year, his amount increases to 100% following the option to buy on the leftover circulating shares, and the stock quote for Cremonini shares was revoked. In March 2011, the Cremonini Group reacquired from the Brazilian Group JBS 50% of Inalca JBS (now Inalca) for 218.9 million Euros. 1.2 Current structure Currently (last available data is from December 2011) the Cremonini Group has 12.500 employees, operates in three areas (slaughtering and processing of bovine and pork meat – distribution – catering) and a total turnover in 2011 of 3 billion 137 million Euros, 39% of which comes from bovine and pork meat processing, and the remaining 22% from catering. Out of the three business areas, 64% of sales is done in Italy, 20% in the EU and the remaining 16% out of the European Union. The area which is most projected towards foreign countries is catering, thanks most of all, as we will see further on, to the on board segment, which generates more than half of its turnover in the European Union. Sales out of the EU are significant as well, especially in Russia, where around 40% of the turnover is generated. Otherwise, the distribution segment gravitates almost entirely on the national territory. Figure 1 – Net turnover per business area Figure 2 – Net turnover per geographical area Extra UE
16%
Ristorazione
22%
Produzione
39%
7
UE
20%
Italia
64%
Source: R&S – Research and Studies As the following graphic shows, Cremonini S.p.A controls directly and indirectly 50 companies, of which 23 operate in the production area, 9 in distribution, 14 in catering (on board and commercial) and 4 companies perform centralized activities. As highlighted by the historical background presented in the previous chapter, the growth of the Group In time happened in three business areas which have allowed to have a diversified approach and, at the same time, of vertical integration, being the productive phase so close to the end market through different distribution channels: with MARR wholesale distribution of food, consumer goods and equipment in general for hotels, restaurants, communities, public institutions etc...; with CHEF EXPRESS, Roadhouse, Moka commercial and on board catering. The Group also proceeded to integrating at the origin, assuming control of 60% of the Tecnostar2 company, which builds slaughtering, processing and packaging plants for bovine and pork meats “turnkey”. Across all production sectors, not only the food one, the last years have seen the major companies apply integral control strategies to the supply chain, with the aim of increasing profits to a maximum. This seems to be the strategy of the Cremonini Group as well, that now controls almost all the activities of the supply chain, with the exception of the breeding phase, which for the moment is almost entirely external to the Group. Nevertheless, It is important to note that analysing data from the consolidated balance regarding cross sector sales, the turnover from sales in the production area and other business areas of the Group are very limited if compared to the total sales. If we may imagine that the production area represents an important supplier for Distribution and Catering, we must in any case take in account that the strong productive capacity of Inalca causes sales to be made to a wide array of subjects, of which the catering and distribution of the Group receive only, relatively, a small part. An element which has heavily conditioned the economic and financial aspect of the Group in the last years was the operation done with JBS, a Brazilian company, and main global operator in the sector of bovine meats. As highlighted in the historical background, in 2008 Cremonini achieved a strategical alliance through capital increases where JBS bought 50% of Inalca for 218.9 million Euros. However, relations between the two companies became strained in a very short time, to the point that in 2011 Cremonini bought back his quota from JBS for the same amount through a pool of 6 banks, bringing the financial debt of the group to 907.2 million Euros as of December 2011, with an increase of over 300 millions over the previous year. This evolution, so important and at the same time concentrated in time, in addition to having negative consequences on the balance sheet, has generated a critical level of debt, capable of conditioning the group in the future. Figure 3 Structure of Cremonini Group as of 31st December 2011 8
Source: General and consolidated balance -‐ 31 December 2011 st
9
Figure 4 Ownership structure of Cremonini Group Notes 1. Of which 0,03% owned and 53,80% with right to usufruct and vote 2. Of which 0,03% owned and 53,80% with right to usufruct and vote 3. Cafin Sapa: 22,63% owned and 28,36% bare ownership with right to usufruct and vote in favour of Luigi Cremonini; Tina Srl: 1,15% bare ownership with right to usufruct and vot ein favour of Luigi Cremonini 4. Tina Srl: for each of the three stakeholders 15,39% owned and 17,55% bare ownership with right to usufruct and vote in favour of Luigi Cremonini 5. Cafin Sapa: for each of the three stakeholders 7,84% owned and 8,48% bare ownership with right to usufruct and vote in favour of Luigi Cremonini 6. Cafin Sapa: for each of the four stakeholders a symbolic amount of 0,0005% each. 7. Of which 2% owned and69,96% with right to usufruct and vote 8. Of which 14,30% owned and 35,68% bare ownership with right to usufruct and vote in favour of Luigi Cremonini 9. Of which 13,74% owned and 34,28% bare ownership with right to usufruct and vote in favour of Luigi Cremonini 10. Company in voluntary liquidation. Other associate (50%): Agricola Valle del Savio Srl 11. Cremofin owns a participation(not identified)through the Compagnia Nazionale Fiduciaria 12. Cremofin is the holding company. It produces a consolidated balance and includes the balances of all companies it controls, directly or indirectly. 13. Cremonini Luigi di Cremonini S.p.A. Owns 0,33% in ownership and has the right to usufruct and vote on the bare ownership shares (2,95% ciascuno) of Vincenzo, Claudia, Serafino e Augusto 14. CI-‐ERRE S.A. (location in Luxembourg) of Cremonini S.p.A. Owns 1,81% in full ownership while the remaining 43.24%, always owned, is in lien at at the Unicredit Corporate Banking S.p.A. 15. Cremofin Srl of Cremonini S.p.A. owns 37,07% in full proprety, while remaining 5.76% is in lien at Unicredit Corporate Banking S.p.A. th
16. Company established the 15 of February 2011. It is the newco that has relieved 50% of shares of Inalca from J.B.S.S.A. -‐ Brazil Source: FLAI CGIL Modena 10
We desire to highlight how figure 2 represents that, even though ownership of companies in the Group is divided among different subjects, decision making processes are basically in the hands of the owner, Luigi Cremonini. It is underlined also how,. Among the owners there are in addition to physical persons, also companies, such as Cafin Sapa, Tina srl, Cremofin, Ci-‐Erre Lux, which possess relevant shares of Cremonini spa but are controlled by Luigi Cremonini. The ownership structure is configures as a complex system of “Chinese boxes” where parts of the Group are controlled by different companies but which are headed by the founder. In addition to a tendency to growth in the long term, even in recent years, characterized by a negative economic outlook in Italy and Europe, the Cremonini Group has registered a positive trend. The next graph will show how between 2006 and 2011 total employees have increased in a significant manner, going from 8.000 to over 12.000. It is important to remember that data relative to 2008 and 2011 suffer from the JBS-‐
Inalca operation. Nevertheless, even ignoring this distortion, in recent years, mainly between 2009 and 2010, the amount of employees has increased in a very rapid way, essentially thanks to the development of catering services. The workers which have increased the most are blue collars, while employees, after having seen a gradual growth between 2008 and 2010, have decreased in 2011, returning to 2006 levels. Lastly, the number of managers, was maintained stable in the course o f the examined years. . Figura 5 – Total employment trend 2006-‐2011 13.000
12.000
11.000
10.000
9.000
8.000
7.000
6.000
2006
2007
2008
2009
2010
2011
Source: R&S – Ricerche e Studi. Note: the decrease in 2008 is relative to a proportional consolidation from the month of March, of the Inalca Group JBS following the reduction by 50% of the participation quota. The increase in 2011 regards the integral consolidation, from the month of March, of the Inalca Group JBS (now Inalca) following the reacquisition of 50% of the JBS Group 11
Figure 6 – Employment trends divided by tasks Operai
Impiegati
Dirigenti
12.000
10.000
8.000
6.000
4.000
2.000
0
2006
2007
2008
2009
2010
2011
Source: R&S – Ricerche e Studi.
Nota: the decrease in 2008 is relative to a proportional consolidation from the month of March, of the Inalca Group JBS following the reduction by 50% of the participation quota. The increase in 2011 regards the integral consolidation, from the month of March, of the Inalca Group JBS (now Inalca) following the reacquisition of 50% of the JBS Group The group turnover as well has had a positive trand, in the years 2006-‐2011 (figure 7), in each of the three business areas. The production area, excluding the JBS operation, has experimented an increase from one billion Euros in 2006 to the one billion two hundred millions of 2011. The catering sector went from 400 millions to over 600, while the distribution sector in the same period of time remained stable, recovering between 2009 and 2011 from the downturn of 2008. Figura 7 – Turnover trends divided by activity areas 2006-‐2011(million Euros) Produzione
Distribuzione
Ristorazione
1.400
1.200
1.000
800
600
400
200
0
2006
2007
2008
2009
2010
2011
Source: R&S – Ricerche e Studi.
Nota: the decrease in 2008 is relative to a proportional consolidation from the month of March, of the Inalca Group JBS following the reduction by 50% of the participation quota. The increase in 2011 regards the integral consolidation, from the month of March, 12
of the Inalca Group JBS (now Inalca) following the reacquisition of 50% of the JBS Group During the examined period, there were no significant changes to the geographical area where most of the turnover was achieved: figure 8 shows how Italy remains between 2006 and 2011 the main destination for products and services of the Cremonini Group, with a growing trend, mainly in 2011. It is interesting to note how both the European Union and extra union activities have registered an increase, in particular in 2008 the first time, and between 2010 and 2011 the second. Figure 8 –Net turnover divided by geographical area in 2006-‐2011 (million Euros) Italia
UE
Altri paesi
2.500
2.000
1.500
1.000
500
0
2006
2007
2008
2009
2010
2011
Source: R&S – Ricerche e Studi.
Nota: the decrease in 2008 is relative to a proportional consolidation from the month of March, of the Inalca Group JBS following the reduction by 50% of the participation quota. The increase in 2011 regards the integral consolidation, from the month of March, of the Inalca Group JBS (now Inalca) following the reacquisition of 50% of the JBS Group 13
2. The three main business areas – Production, catering and distribution 2.1 Production The Cremonini Group through Inalca is the absolute leader in bovine meat processing and hamburger and canned meat production, by controlling Montana, Ibis and Salumi d’Emilia, it is among the very first operators in the cold cuts and snacks sector. The production sector has made a total turnover of over one billion 400 million Euros. 86% of the turnover comes form production, processing and sale of bovine meat, while 14% from production and processing of cold cuts. Over 50% of the Inalca turnover is done abroad. The sale channels are 30% GDOs, 11% national and multinational industries, 28% from catering chains, 20% from traditional retail and 11% from other channels. 2.1.1 The companies The production area, which manages slaughtering, processing and sale of bovine meats and meat based products is composed, as of December 2012, of 22 companies controlled by the Cremonini Group. Among these, 7 take care of effectively producing meat based products, with or without the slaughtering activity, while the remaining are mainly companies that wake care of logistics and sale of products. In particular, and being controlled by some of the listed companies, there are 16 distribution platforms, and in some cases also productive, in Russia, Angola, Congo, Algeria, Mozambico, and some offices in Brazil, Argentina and Cuba. In addition to the production and sale company, there are controlled companies which basically offer the same services. This is the case of GES.CAR, which as it is clear from the 2011 balance, takes care of “services tied to the processing of bovine meats in the Inalca plant of Ospedaletto Lodigiano. As we will see later, in of the main Inalca plants the workforce is not employed directly by Inalca, but answers to external cooperatives. In addition to GES.CAR, among the the controlled companies in the production branch, there is the Tecno-‐Star 2, a company which builds meat processing plants “turnkey”. Through the control of this company, the Cremonini Group is substantially integrated at its origin, acquiring the capacity to build autonomously its plants, as it was already highlighted previously. An example of this is the recent MARR plant in Russia, opened in 2010, and build for the production of hamburgers mainly for McDonald’s in Russia. In the same country, a second plant was opened during 2013 (in Oremburg) and a new distribution-‐
production site will be built in Warsaw, Poland (source R&S). Laslty, in the production area there are also three companies, Montana Alimentari, Ibis (merged in 2012 in Italia Alimentari) and Salumi Emilia, which operate in the cold cuts and snacks sector. In this field, the Cremonini Group is present with its own plants in the DOP IGP areas (culatello, bresaola, mortadella, salamino alla cacciatora) and is specialized in the preparation and packaging of cold cuts and ready made deli. Chart 1 -‐ Cremonini Group companies and production areas Company Activities performed
a) Bovine meats and meat based products INALCA S.p.A. Via Spilamberto n. 30/C -‐Castelvetro di Modena (MO) GES.CAR. S.r.l. Via Spilamberto n. 30/C -‐Castelvetro di Modena (MO) Slaughtering, processing and sale of bovinemeat based products. GUARDAMIGLIO S.r.l. Via Coppalati n. 52 -‐Piacenza Handling of retail (groceries and butchers) 14
Services linked to the processing of bovine meats in the INALCA plant of Ospedaletto Lodigiano. SOC. AGR. CORTICELLA S.r.l. Via Corticella n. 15 -‐Spilamberto (MO) Breeding of bovines, directly or through agistment contracts. FRIMO S.a.m. 1, Rue du Gabian "Le Thales" -‐Principato di Monaco Commerce of food products QUINTO VALORE S.c.a r.l. Via Due Canali n.13-‐Reggio Emilia Commerce of subproducts of bovine processing (skins). Recycling and treatment of scrap from agricultural and animal SARA S.r.l. Via Spilamberto n. 30/C -‐Castelvetro di Modena (MO) processes.
INALCA ANGOLA Ltda. (ex INALCAMMIL) Rua Deolinda Rodrigues n. 563 -‐Luanda -‐Angola Commerce of food products INALCA ALGERIE S.ar.l. 08, Rue Cherif Hamani -‐Algeri – Algeria Commerce of food products INTER INALCA ANGOLA Ltda. Rua Major Kayangulo n. 504 -‐Luanda -‐Angola Commerce of food products INALCA KINSHASA S.p.r.l. Kinshasa 11eme -‐Rue Limete Industriel n. 112, Limete (Kinshasa) -‐Repubblica Democratica del Congo Commerce of food products KASKAD OOO L.l.c. Via Vostochnaya n. 5, Odincovo (Mosca) -‐
Russia Real Estate MARR RUSSIA L.l.c. Via Vostochnaya n. 5, Odincovo (Mosca) -‐
Russia Commerce of food products INALCA BRAZZAVILLE S.a r.l. 64, Avenue de France Poto-‐Poto (Brazzaville) Repubblica del Congo Commerce of food products ZAKLADY MIESNE SOCH. S.p.z.o.o. L.l.c. Al. Jana Pawła II n. 80, Varsavia – Polonia Inactive TECNO-‐STAR DUE S.r.l. Via Modena 53, Castelvetro di Modena Planning of buildings, maintenance and managing of restructuring (MO) activities REALBEEF S.r.l. Contrada Tierzi – Flumeri (AV) Meat processing and sale of meat based products
FIORANI & C S.p.A. Via Coppalati n.52 Piacenza Meat processing and sale of meat based products
INDUSTRIA ALIMENTAR CARNES DE MOCAMBIQUE L.t.d. – Avenida de Mocabique km 9,5 Barrio Zimpeto Distretto 5 -‐Maputo -‐Mozambico Commerce of food products BELL CARNI S.r.l. Via Eridania n. 58 -‐ Stienta (Rovigo) Via Eridania n. 58 -‐ Stienta (Rovigo) Meat processing and sale of meat based products b) Salumi e snack MONTANA ALIMENTARI S.p.A. Via Europa n. 14, Busseto (PR) Production and commerce of food products (cold cuts, gastronomy)
IBIS S.r.l. Via Modena n. 53 -‐Castelvetro di Modena (MO) Production and commerce of cold cuts SALUMI D’EMILIA S.r.l. Via Modena n. 53 -‐Castelvetro di Modena (MO) Production and commerce of cold cuts Source: General and consolidated balance December 2011 2.1.2 Plants and workers The Inalca plants process and sell over 500.000 tons of bovine meat every year, through its own brand and for third parties, for a total of 100.000 tons (one billion hamburgers) and a productive capacity of 200million cans, more or less 50.000 tons every year. Regarding cold cuts and snacks, the production includes DOP and IGP products such as Culatello di Zibello DOP, the salame Felino IGP and Bresaola from Valtellina IGP, in addition to producing ready made cold cuts packages (which reach 100million packs every year) and sandwiches (12 millions every year). Sector employees in the production area are around 2.700 according to the Group, of which 1000 in Russia and Africa and the rest in Italy. The following chart shows the list of productive sites of the Cremonini Group present both in Italy and abroad, and the relative data 15
regarding employees, where available. The biggest plants are those of Castelvetro di Modena and Ospedaletto Lodigiano. The Castelvetro di Modena plant covers a total surface of 125.000 square meters (65000 covered) and has a processing capacity of 300.000 units per year. During a one year period, this plant processes 80.000 tonns of meat, and 50.000 tons of minced meat and hamburgers, and 10.000 tons of meat cans. The Ospedaletto di Lodigiano plant extends on a total surface of 400.000 square meters (60.000 of which covered) and has a processing capacity of 150 units per hour, 6000 per week, 350.000 every year. Inside the plant all the phases of the productive process are carried out. In addition to the first processing phase typical of the industry (sides, quarters, fresh and frozen cuts) other products are made, such as fixed and variable weight portions, meat products, minced meat and hamburgers, which are sold with the Montana brand and are destined in particular to great distribution chains. The plant has a production capacity of 10.000 tons of fresh hamburgers, 5.000 tons of fresh meat products every year, 15.000 tons of processed meat and 100.000 tons iinthe deboning and sectioning Chart 2 –Productive plants of the Cremonini Group Plant ITALIA – MACELLAZZIONE E TRASFORMAZIONE CARNE BOVINA Employees
658 i INALCA employees + around 400 cooperative workers (BOING-‐Consorzio Euro2000, Food Placet, SLC, La Ghirlandina)
135 INALCA and GES.CAR. employees + cooperative workers (Universal, Iride e King – Consorzio Euro 2000)
58 . employees INALCA + 110 cooperative workers (BOING-‐
Consorzio Euro2000 e Caleman-‐ Consorzio Euro2000)
Castelvetro di Modena (MO) Ospedaletto Lodigiano (LO) Rieti Roveleto di Cadeo (PC) Flumeri (AV) n.a.
n.a.
Capo d’Orlando (ME) n.a.
ITALIA – SALUMI, SNACK E GASTRONOMIA PRONTA Gazoldo degli Ippoliti (MN) 220 employees
Paliano (FR) 36 employees
Postalesio (SO) Busseto (PR) n.a.
82 direct employees + 20 cooperative workers (Il Colle e Must Service)
RUSSIA Odentsovo Source: R&S e FLAI CGIL
n.a.
2.1.3 Working conditions and industrial relations Industrial/trade union relations are managed by the head of huan resources, which follows on behalf of Assocarni president Luigi Cremonini the collective bargaining for the renewal of the national labor contract for the food industry. Assocarni is one of the five associations which have subscribed the national labor contract renewal after about a month, although contrasts were present within Federalimentari. In almost all plants belonging to the group, a second level bargaining is present, and it is moderately succesfull. The main problem within the Cremonini plants, as it was discovered following the qualitative research results, is represented by the use of tenders, which are mainly managed by the cooperative consortium 16
EURO 2000, of which are part Universal, Iride, King, Boing and Coleman, employing most of the workforce in the Ospedaletto Lodigiano plant, and a consistent part of those in Castelvetro di Modena and Rieti. The applied national labor contract is that of food cooperation. The framework of industrial relations in the productive area is further complicated by the fact that joint decisions FLAI CGIL, FAI CISL and UILA UIL are fluctuating. Concerning the Castelvetro plant, the biggest in terms of employees and productive capacity together with that of Ospedaletto Lodigiano, and the three cooperatives present (Boing, Food Planet and SLC) only the first applies the food cooperative contract, and as of today has 17 workers that are members of FLAI CGIL, while others apply the transportation sector contract, and have around 100 members which are part of FILT. Among the INALCA workers, 169 are members of FLAI CGIL. In the last years, industrial relations in this plant have been difficult, from the point of view of FLAI CGIL the company has given its priority to containing labour cost, and this has had repercussions on the company level contract, considered a “minimum”. It has used individual types of bargaining, especially with senior workers, and has assigned to third party cooperatives an important part of the tasks. Workers hired by cooperative companies, of which about one third are of extra European origin, seem to be those with the biggest problems: there is a high level of fluctuation among these workers, which by the way had included in the hiring contract the possibility of being transferred, and this is an element which is felt as greatly conditioning . Recently, a representative body has been formed out of these workers, but it is functioning with great difficulty. In the Ospedaletto plant, as we have seen, only a minority of workers is directly employed by Inalca and Gescar (Cremonini Group) and to these workers, which mainly have clerical functions, for example quality control, the food industry contract is applied. Mosto f the workers operating in this site are employed by cooperative compagnie that are part of the Euro 2000 consortium: Universal, Iride and King which hoperate in the sectors of slaughtering, deboning and packaging. The food cooperation contract is applied to these workers, which are about 514. Trade union relations with Gescar are stable. The RSU, which is shared between Inalca and Gescar, is composed by four members, two for FLAI CGIL and two for FAI CISL. The 16th of March 2012, following a presentation of a joint platform, a company level contract was signed, having a two year validity, and providing for a variable bonus. On the other hand, trade union relations between FLAI CGIL and the cooperatives of the Euro 2000 consortium are strained. Ersamente Workers are mainly members of FAI CISL, which nominates delegates for all RSUs. FLAI contributes with only one delegate, in the Universal cooperative. In the Univeral and Iride cooperative at the moment a special unemployment insurance is in place, due to the seasonal decrease in workloads. It should be highlighted that in the Ospedaletto plant, the various trade unions present seem to follow different directions: if FLAI CISL tends to keeping social peace at a company level, FLAI CGIL uses a different relation scheme, which includes conflict, where necessary. Another critical aspect is the tendency of the central management of having privileged relations with FAI. It is finally important to say that FAI CISL manages through its training body a series of regular butchering courses, followed by a six month apprenticeship (one month in classroom, followed by field experience), which are usually followed by short term hiring. The characteristic of industrial relation are anyway very different between plants and the descrive situation for the two major ones, Castelvetro and Ospedaletto, are not applied to all cases, this also due to the lack of coordination at a union level between the various plants of the Group. In the Busseto plant, for example, trade unions have a recognized role in the company, discussing with workers’ representatives all key decisions. Lastly, it is important to highlight the entrance of cooperatives in some plants of the group, such as the Ospedaletto or the Busseto ones (where cooperative presence is modest and limited). This happened thanks to a joint agreement with unions, whereas the company had asked for the possibility to assign a part of the tasks to external cooperatives, due to the investments done in the plants themselves. The following chart shows the number of FLAI CGIL members, and, where possible, those of other trade 17
unions and the composition of RSUs in the 6 productive plants of the Group. Chart 3 – Membership and composition of RSUs in 6 Cremonini Group plants Plant Castelvetro di Modena (MO) Ospedaletto Lodigiano (LO) Rieti Busseto (PR) FLAI CGIL members in Inalca 169 FLAI CGIL members in cooperatives 17 FILT CGIL members in cooperatives 100 19 37 5 FLAI CGIL, 2 FAI CISL e 4 UILA UIL
2 FLAI CGIL, 2 FAI CISL
11 (9 FAI CISL and 9 UILA UIL) 54 (2 FAI CISL) 13 (11 FAI CISL e 2 UILA UIL) 34 (18 FAI CISL and 30 UILA UIL) 9 3 i FLAI CGIL delegates
2 FAI CISL delegates (with rotation agreement with the first of FLAI non elected when votes received are equal) and 1 FLAI CGIL 3 FAI CISL 1 FLAI CGIL
Paliano (FR) Gazoldo degli Ippoliti 27 (MN) Source : Ires Emilia-‐Romagna su dati FLAI CGIL RSU composition
The research activities on the field have helped gather a series of impressions from the representatives and trade union officers, regarding the EWC establishment in the Group. Generally speaking, this possibility is greeted with great interest since it’s seen as an opportunity to on one hand reactivate the coordination among trade union organisations which was never possible to achieve, not even limited to the Italian production plants, and on the other it could help gather further information regarding the company and its development, information which has always been lacking. At the same time, some fears were expressed, first of all regarding the difficulty in bargaining a company level contract in the Group, at least for the production area, which could signal a possible hostile attitude of the company towards the establishmento f an EWC. The fact that the establishment of an EWC would have implicatons on the company balance sheet, causing an increase in costs, especially in a moment when the balance itself has some critical elements following the operation with JBS, could signify a resistance of the Group towards this topic. In addition, various approaches to industrial relations with the different trade unions may represent an obstacle to the establishment and functioning of an EWC. Additionally, the fear exists that with the EWC the positive conditions that some plants have achieved thanks to current relations and/or to the presence of a territorial bargaining could be lost, as in the case of the Busseto plant, where a territorial contract on animal conserve exists and Is applied to the whole province. Lastly, there is also the worry that an EWC could be presented by the company as a sign of distinction, a testimony to the high quality of existing industrial relations, with the aim of hiding the critical aspects already briefly mentioned. 2.2 Catering 2.2.1 Companies and employees Catering is divided in two areas: on board catering and commercial restaurants in train stations, airports and highways. The companies operating in this sector as of December 2011 are 12. Regarding catering on board trains, there are 5 very relevant companies which manage, in concession, catering services on board trains in various European countrie: Chef Express on Italian trains; Momentum Services, on trains that connect London, Paris and Bruxelles through the Eurotunnel; Cremonini Restauration in France, Railrest on the Thalys high speed trains which connect Belgium with France, the Netherlands and Germany and 18
Cremonini Rail Iberica operating on all high speed trains (AVE) in Spain. Regarding commercial catering, there are a total of 4 companies, the most important being: Chef Express, in commercial catering in concession. In particular it manages catering in buffets of important Italian train stations, airports and service stations on the highways, and Roadhouse Grill, representing a franchised steakhouses chain
Chart 4 – Cremonini Group companies in the catering sector a) on-‐board catering Number of employees
CHEF EXPRESS S.p.A. – Divisione Ferroviaria Sede legale e amministrativa, Via Modena n. 53 Catering on board trains in Italy – Castelvetro di Modena (MO) MOMENTUM SERVICES Ltd. Parklands Court, n.24 -‐Birmingham Great Park Rubery, Birmingham -‐Regno Unito Catering on board trains crossing the Eurotunnel and connecting London with Paris and Bruxelles -‐ concession GLOBAL SERVICE LOGISTICS S.r.l. Via Modena n. Logistics, managing and handling of 53 -‐Castelvetro di Modena (MO) goods in general. CREMONINI RESTAURATION S.a.s. 83, Rue du Charolais, Parigi – Francia Managing of on board catering in France –concession Managing of logistics in train stations RAILREST S.A. Frankrijkstraat, n. 95 -‐Bruxelles -‐
Belgio Managing catering on high speed Thaly strains connecting France, the Netherlands and Germany – concession CREMONINI RAIL IBERICA S.A. (ex Rail Gourmet Catering on board all high speed trains España S.A.) Camino del Pozo del Tio Raymundo, in Spain (AVE). n. 11 -‐Madrid -‐Spagna CHEF EXPRESS UK LTD. 1-‐3 Union Street, Kingston Upon Thames, Surrey, Londra – Regno Not operative Unito CHEF EXPRESS RUSSIA Via Riabinavaia, 43A -‐
Not operative Mosca -‐Russia Managing in concession of welcoming LOUNGE SERVICES S.a.s 91, Rue du Faubourg services in the waiting room of Eurostar Saint-‐Honoré – Parigi -‐Francia in Paris. 2.150 of which 1.700 in on board services and 415 in logistics and administration
Managing of logistics in the Tgv Est and AVIRAIL S.a.s. 83 rue de Charolais Parigi -‐Francia Lyria b) Ristorazione commerciale Commercial catering in concession. In CHEF EXPRESS S.p.A. – Divisione Commerciale particular manages buffets in important Via Modena n. 53, Castelvetro di Modena (MO) Italian train stations, airports and service stations on highways ROADHOUSE GRILL ITALIA S.r.l. Via Modena n. 53, Castelvetro di Modena (MO) Managing in Italy of the “steakhouse” restaurant chain ROADHOUSE GRILL ROMA S.r.l. Via Modena n. 53, Castelvetro di Modena (MO) Managing of “steakhouse” restaurants in the Rome area. Managing of vending machines for the distribution of beverages, cooked food and generic products. Source:General and consolidated balance-‐ December 2011 TIME VENDING S.r.l Via Modena n. 53 -‐
Castelvetro di Modena (MO) 19
2.2.2 Characteristics of employment and of industrial relations Considering the complex articulation of this business area, which is divided as we have seen in two different segments, and operating in different European countries, we now present the details on employment and industrial relations for both branches, and regarding those countries where the Group operates. Generally speaking, it is important to signal that in addition to the specific aspects of individual countries (described hereunder), all involved countries have in common the transposition of the European Directive “Working conditions of mobile workers engaged in interoperable cross-‐border services in the railway sector”2 which regulate the working conditions of catering on board trains workers at a transnational level, and which serves as a “base” for agreements and contracts developed in the individual countries. We anticipate that, as it will be clear by reading the single cases, in all States we are witness to a progressive decrease of tender rules quality, especially due to a strong pression towards cost reduction which often causes the economically most favourable proposal to be accepted, rewarding a lowest bid mechanism. It is clear that this trend has already had important repercussions on working conditions in various countries. On board catering Italy Currently Cremonini has no active contracts in the on board catering in Italy. The last contract for such contracts is of 2009, when in the month of August Cremonini lef the Associazione Temporanea d’Impresa (ATI) and left this activity to TSI, a subsidiary of Wagons-‐Lits. The activities managed by TSI are those introduced by Cremonini, that is catering and welcome drink for the first class, and minibar service. Cremonini managed also logistics and food supply. In March 2013 a new tender was issued, which should end in December of the same year. Currently it seems three companies are competing. The length of the next contract is of 4 years, the winning company will have to employ existing staff, around 1.400 people. It should be highlighted that, while the previous tender was divided in separate packages, the current one is for the “complete package”, that means catering and logistics services. In Italy there are three major trade unions. Recently and in the on board catering sector, two more are to be added, so called autonomous, and subscribers of the collective contract. In the past, Cremonini did not adopt the national collective contract for the transport sector, but the multiservice one, and had a company level contract which did not defend workers on board trains, considered as travellers. Through union action, a confluence contract was initially adopted, providing for 10 hours at basic pay, and without compensations (such as entering service on hour earlier or residence compensation). Toady inseatd railway personnel is covered by the new mobility contract which recognizes previously absent compensations. United Kingdom First of all we point out that there are elements of a general nature in the United Kingdom which influence trade union activities: the current government is hostile towards trade union actions, thus making very hard to defend workers; in addition, no sector agreements exist in the country, except for agriculture, and as a consequence only company level contracts exist. Lastly, the situation is complicated by the fact that there is no recognized union, to be so it is necessary to have more than 50% of members within a company, and therefore be able to represent workers. 2
http://europa.eu/legislation_summaries/employment_and_social_policy/employment_rights_and_work_organisation/l2
4266_en.htm 20
Cremonini is present in the UK with the Momentum company, which takes care of managing, in concession, catering services on board trains which, through the Eurotunnel connect London with Paris and Brussels. Momentum has a total of 720 employees, of which 380 in London and the rest employed in Brussels and Paris. Momentum manages, in addition to on board catering, also logistics in the London station of St.Pancras. Currently, there is no proof that Cremonini is interested in other tenders. The current contract expires in May 2014, in June 2013 a new tender will be open, and Momentum will participate. If Momentum should loose the tender, Cremonini would have no more employees in the UK. Since there is no sector agreement in UK as in other countries, and in particular France and Belgium, in the UK it has been attempted to improve the contract make it similar to the Beligan and French one, but without success. Generally speaking, the relation between company and trade union are good, but have become more conflicting in the last 2 years. Recognized trade unions in the London offices are Unite the Union, and The Transport Salaried Staff Association (TSSA). TSSA represents the administrative staff and supervisors, but has few members and no eleceted representatives. Uni te has 220 members and 8 elected representatives, and represents personnel in the on board catering sector, and staff working in lounges and part of the land staff. Spain
Throuh its subsidiary Cremonini Rail Iberica, the Cremonini Group manages the contract for all catering services on board high speed trains (AVE) and long distance onces operating in Spain, such as logistics, supply and preparation of catering. In addition, Cremonini in Spain at the moment manages indirectly, through subcontracting and Rail Service (a company with its offices in Lisbon and employing around 35 people) all the services on board traing in the following Spanish cities: Madrid, Barcellona, Valencia, Alicante, Sevilla, Malaga, Cartagena, La Coruna, Irun, and Bilbao. The number of workers is around 2.150, of which 1.700 are on board trains and 415 work in the logistics and administartive sectors. Among these workers, around 90% has a long term contract. In Cremonini Rail Iberica three collective contracts are applied: the third collective contract of Cremonini, the Wagon-‐Lits collective contract, and a special contract signed by minor unions. Management of the company has not signed the collective agreement with the major trade unon (CCOO) because at the moment not all workers are in a alegal framework. Regarding the representation structure of workers at a company level, Cremonini Rail Iberica has a total of 102 workers’ reps divided in 5 unions present in the company, based on the following scheme:  60 representatives of Comisiones Obreras (CCOO)  26 representatives of Union General de Trabajadores (UGT)  11 representatives of Confederacion General de Trabajo (CGT)  representatives of Sindacato Ferroviario (SF)  representatives of Union Sindical Obrera (USO). Regarding the coordination between workers’ representation structures at a company level, each operative center has its Works council in which all representatives are present, regardless of the union of origin. These committees are the transmission point for dialogue among workers and company. In any case, the function of these committees is influenced by the presence of problems in industrial relations, as a consequence these committees are not operative. The main problems derive from the fact that the company failed to respect the current national contract, therefore union relations are now handled in courts. The railways sector where Cremonini Iberica operates is a higly unionized sector, as a consequence 21
unionisation levels in Cremonini are very high. In November 2009, all the catering services on board RENFE trains were awarded. In this way Cremonini became the only services provider in the railway sector in Spain, leving out of the market a historic company in the sector as Wagon-‐Lits. It was the first time by the way that all services were awarded to one company. The value of awarded services is 476 million Euros, for a maximum period of four years. The current contract is therefore due to expire the 1st December 2013, and RENFE is preparing a new call for tender. The main opponents of Cremonini in the new tender will be all those companies that take care of the various levels of catering and guest welcoming, and that have already workerd with RENFE. It should be remembered that RENFE must initiate a process of liberalization of rail transportation that, together with the economic crisis, will cause a considerable reduction of foreseen values for a given service, and this will probably mean a reduction of quality/quantity of services. Generally speaking, tenders are evaluated based on economic and quality terms. In Spain the Cremonini Group manages only on board services, until 2004 its activity extended to preparation of dishes on board, but since then this activity has been outsourced. Considering all elements above mentioned, currently the main reason for worry for CCOO and workers is represented by maintaining workplaces. The labor reform approved by the Spanish Government worsens the role of collective bargaining and leaves in the hands of the company to regulate working conditions and many aspects on which before there was a discussion with the union. Currently the only tool for workers is union action, or resolution through litigation procedures. The labor reform allows companies to reduce working hours or salaries in an arbitrary way, as a consequence all resources of the unions and workers are now focused on trying to maintain what has been conquered in the last 25 years. France
For many years, on board catering on Thalys trains hs been managed by Wagon-‐Lits, in 2009 Cremonini won the tender and obtained the contract. It was a very difficult moment for dialogue between union and company, since the company wanted to impose a work organisation with different and worst characteristics. This has cause a strong conflict that caused a 26 day strike, to mainatin previous working conditions. Thanks to this all the existing workforce was maintained with the previous conditions, which provided for 35 weekly working hours, 42 days of holiday each year. At the moment a new tender is open, and the results will be known in the summer of 2013. In a similar way to what happened in 2009, the tender was divided in multiple sections, that means there are different tenders for different services: catering, marketing and high speed links. This means more companies may participate. Cremonini Restauration workers are around 1.900, of which 80% on board., 17% technical staff and the rest are managers. Headquarters ar ein Paris, in the Montparnasse station. Commercial catering The Cremonini group is active in the commercial catering sector, mainly but not only through two brands: Chef Express, operating both on board and on land, and Roadhouse Grill. In the case of Roadhouse Grill, there is no organised union presence, while it does exist in highway catering and train stations buffets. In particular, Chep Express is present in the following places: Train station: 150 restaurants in 43 stations , of which 9 are classified as “Grandi Stazioni” (Roma Termini, Milano Centrale, Firenze S. Maria Novella, Venezia, Genova Piazza Principe, Genova Brignole, Palermo Centrale, Torino Porta Nuova, Napoli Centrale). Airportsi: Roma Fiumicino, Roma Ciampino, Milano Malpensa, Milano Linate, Cagliari, Parma, Bergamo Orio al Serio e Genova 22
HIghways: 85 restaurants in 35 service areas. In addition to the Chef Express brand, Cremonini Group operates in the catering sector with other brands, the logos being shown in figure 9. In addiiton, if we consider places that can be considered true “restaurants”, Roadhouse Grill is present on the Italian territory with 38 restaurants distributed mainly in the centre north of Italy: Emilia Romagna, Lombardia, Veneto, Piemonte, Liguria, Marche, Toscana and Lazio. Figura 9 – Main brands owned by Chef Express – Gruppo Cremonini Regarding Chef express rest stations along the highway network, from a collective bargaining point of view the same contract that was applied when Autogrill (Benetton Group) was the only operator, is applied. Thanks to the relevant istitutions which set competition rules, an exact maximum number of restaurants that Autogrill could have on the highway network was established, amounting to 80% of the total restaurants. As a consequence, new operators entered the market, such as Sarni, Chef Express e Ristop. At the moment, considering not only highways but also restaurants in train stations, airprts, malls, the two main operators are McDonald’s Corp. and Autogrill, followed by a long distance by Chef Express, which is third for number of restaurants managed in cocnession. Regarding in particular the highway segment, it should be remembered it is suffering right now, not only due to the economic crisis, but also because the model itself is suffering. If once the whole segment was rather “protected” and generated a significant revenue for the only operator present, currently a change in lifestyles and traveling habits have cause a reduction of consume levels in these restaurants. In addition, it is necessary to highlight that services are managed through tenders that work with different mechanisms if compared to catering on board trains. In the case of commercial distribution, to win the contract, a discriminating element seems to be the royalties quota (percentage of revenue granted by the managing organisaton to the highway company). In this field royalties do not have a fixed value, they amount to 20% average, but can get as high as 40% as in the cases of Autostrada del Brennero. Such a high royalty level has obvious implications on the consequent necessity to reduce overhead costs, in particular labor cost. The total amount of workers in commercial catering in Italy is around 3.200. 2.3 Distribution 2.3.1 Companies Companies which compose the distribution area are 6 according to the consolidated balance as of December 2011. Among these, MARR and As.Ca take care of sales and distribution. The Alisea company focuses on catering in hospitals, Emilgel and New Catering sell and distribute fresh, dry and frozen food, and Baldi Adriatica pesca focuses on sale and distribution of fresh and frozen fish. Chart 5 –Cremonini Group compagnie in the distributon sector Sale and distribution of resh, dry and frozen food to catering MARR S.p.A. Via Spagna n. 20 -‐Rimini 23
ALISURGEL S.r.l. in liquidazione Via Giordano Bruno n. 13 -‐Rimini Not operative, currently being MARR FOODSERVICE IBERICA S.A.U. Calle Goya n. 99, Madrid – Spagna Not operative Catering for hospitals
ALISEA S.c.ar.l. Via Imprunetana n. 231/b, Tavarnuzze (FI) Currently not operative, in the company branch SFERA S.p.A. Via del Carpino n. 4, Santarcangelo di Romagna renting sector (RN) AS.CA. S.p.A. Via del Carpino n. 4, Santarcangelo di Romagna Sale and distribution of resh, dry and frozen food to catering
(RN) NEW CATERING S.r.l. Via del Carpino n. 4, Santarcangelo di Distribution of food products to bars and fast foods Romagna (RN) BALDINI ADRIATICA PESCA S.r.l. Via del Carpino n. 4, Sale and distribution of fresh and frozen fish Santarcangelo di Romagna (RN) EMIGEL S.r.l. Via del Carpino n. 4, Santarcangelo di Romagna Distribution of food products to bars and fast foods. (RN) Source: General and consolidated balance -‐ 2011 Among the listed companies, the group leader is MARR S.p.A, which started operating in the 70s, when a group of wholesale retailers in Rimini started operating in the distribution to hotels and restaurants during the summer season, on the Emilia Romagna “riviera”. In December 1972, M.A.R.R Magazzini Alimentari Riuniti Riminesi di Ceccarelli -‐ Sberlati & C. s.n.c. was created, with headquarters in Rimini. Halfway through the 70s, the Montedison Group acquired a 40% share of the company, becoming the major stakeholder. In 1980, M.A.R.R assigned the company branch to Distribuzioni Alimentari, which took the name of MARR -‐ Magazzini Alimentari Riuniti Riminesi. In the 80s, the Group activities expanded, both through a gradual increase in coverage of the national territory and through the opening of new offices in Puglia, Veneto and Isola d’Elba, and opening to new types of customers thanks to the participation to tenders for the supply of food products in prisons, through its subsidiary Sias – Società Italiana Appalti e Servizi (incorporated in MARR in November 2004) and to hospitals through its subsidiary Alisea s.c. a r.l. In 1983 the Group started operating in the commerce of wholesale fresh and frozen fish through its subsidiary Emiliani s.r.l. (incorporated in MARR in September 1994). The fish market started therefore becoming very important for the M.A.R.R. Group, an importance which has consolidated in time also thanks to subsequent acquisitions by specialized operators. In the 90s the Group opened new offices in Sicily, Campania, Lombardia, Lazio, Veneto and Sardegna. In July 1991, M.A.R.R changed name in Finmarr. The growth strategy of the MARR Group went on in the years 1998-‐1999 through the acquisition of the majority of shares of Adria Food s.r.l and Copea s.r.l., subsequently incorporated, which allowed to consolidate the position of MARR in Veneto and the Rimini territory. Between 1999 and 2001, MARR acquires local companies in Liguria, and started new subsidiaries in the area of Imperia and Genova. In April 2003, the Cremonini Group has perfected the agreement for the sale of a minority share of 33.3 % of MARR to a pool of institutional investors (Arca Impresa Gestioni SGR, Barclays Private Equity, Efibanca, Star Social Responsible Fund, Private Equity Partners, Aletti Merchant and Paneurinvest) for a total of 100 million Euros, of which 65 coming from a capital increase (decided in the following month of May) and 35 million Euros from the direct sale of a participation quota of 11.67%. In March 2004, the MARR Group acquired from the Succi family 100% of Sogema (now Sfera, inactive), main operator in Piemonte and Valle d’Aosta in the sector of food distribution in the “food service” segment, for a total of 12 million Euros In January 2005 the MARR Group acquired Sfera, operating in the catering distribution sector, for 6 million Euros. In the following month of June 41.81% of the MARR social capital (12.65% from Cremonini and 29.16% from other shareholders) was subject to a takeover bid at 6.65 Euro per share; the revenue for this was aroung 184 million Euros. In the following month of July Cremonini reacquired a quota of 3.75% of MARR, for 16.5 million Euros. Between 2006 and 2009 the MARR Group has acquired other companies operating in the distribution sector, among which: New Catering s.r.l., Emi.Gel s.r.l., Prohoga, Cater, Baldini Adriatica Pesca, Minerva and Jolly Hotel (the latter only regarding distributio of food products in NH Group hotels in Italy). As it may be understood by this description and by the growth of reveune in the last 6 years, amounting to 1 billion 200 million Euros in 2011, MARR represents a very important company for the 24
Cremonini Group, and it’s growing. 2.3.2 Characteristics of work and of industrial relations Currently the MARR Group employs around 1000 workers (half blue collars, half white) of which around 400 in the Rimini province, where it owns 5 plants, employs more than 650 salespersons and has a transport network of 700 trucks. In Italy it owns a total of 30 plants in 12 regions, of which 12 in Emilia Romagna. The plants that are present in the Rimini territory have different specializations, ranging from wholesale to foreign deliveries. The number of direct employees has decreased in time because progressively most activities in the 5 plants have been outsourced to portering and logistics companies. The companies present in the Rimini province have 60 Filcams CGIL members. The RSU which was present until 2012 and must currently be renewed, was composed by 7 delegates of which 6 are Filcams CGIL and 1 Fisascat CGIL. Also in this business are, there is a very high level of outsourcing of activities. Always regarding the Rimini territory, company level bargaining does not currently exist, the territorial contract expired years ago, there is a protocl on tenders signed at the end of the 90s which was never cancelled, which would bind MARR to a preventive discussion any time an outsourcing is due. This protocol was not applied recently. Currently, the outsourcing of tasks/activities happen through direct contact with workers, without collective mediation, to which it is proposed to continue their activities for the company by being hired by a third party company. In the Rimini province, union relations are “cold”, and the company tends to give answers which are judged as partial by unions, and often these answers arrive after a very long time. Union relations have worsened somewhat after the sacking of a Filcams delegate by MARR, as he was a member of the Secretary and represented security workers, and this happened following his statements on security to the press. The company fired him due to disciplinary reasons. This event had an impact on unionisation levels and on the involvement of workers, which are afraid of neing treated in the same way. As expolained in the MARR general balance sheet of 2012, in the month of February 2013 the rent contract of Scapa Italia S.p.A. expired. Through the company renting, MARR now controls the distribution centers of Marzano (Pavia) and Pomezia (Roma): due big and modern structures with optimal positions. The Marzano centre (opened in 2009) has a total extension of 22.000 sqm, of which 11.700 with controlled temperature, while the Pomezia warehouse has a surface of 11.000 sqm, of which 4.800 with controlled tempreature. MARR will be able to concentrate on these structures the logistics and distribution activities of their National Account customers (operators in the collective and structured commercial catering), rationalizing further the activities dedicated to the Street Market segment, performed by other distribution centers. The Scapa operation allows MARR to access a significant customer portfolio in the segments of collective catering and structured commercial catering, strentghening its leadership position. Management of Scapa activities should contribute to the revenue for 80 million Euros in 2013. This choice troubles workers and unions, which fear a transfer of a relevant part of activities currently performed on the Rimini territory. 2.4 Centralized activities We finally present the following chart, for the sake of completeness, describing centralized activities of the Cremonini Group: we are talking about 4 companies whic hmanage legal and fiscal assistance, services linked to human resources, air transportation and real estate market. Chart 6 – Cremonini Group companies, centralized 25
Company Activities performed
CREMONINI S.p.A. Via Modena n. 53, Castelvetro di Modena (MO) Support services to companies of the Group for legal, fiscal, insurance, administrative matters. Manages owned assets. Human resources services: management and administration of salaries. GLOBAL SERVICE S.r.l. Via Modena n. 53 -‐Castelvetro di Modena (MO) INTERJET S.r.l. Via Belvedere n. 23 -‐Castelvetro di Modena (MO) Human resources services: management and administration of salaries Air transport (t.p.p.) CONS. CENTRO COMM. INGROSSO CARNI S.r.l. Via Fantoni n. 31, Bologna Real estate 3. Conclusions This work, developped with the aim of gathering and systematizing necessary information for the establishment of an EWC in the Cremonini Group, tried to describe the major characteristics of the Group. We believe that as a conclusion, we may state that as a structure, the Cremonini group is characterized by a high comlexity due to the amount of comande involved, and mosto f all to the diversity of busines areas where it operates. As highlighted in the report, the structural complexity is worsened b ytwo additional elements. Firstly, by the fact that one of the business areas, catering (very relevant from a revenue point of view, in terms of number of workers and international presence) depends on the result of tenders. According to the these results, the perimeter of the Group increases or decreases, having evident repercussions on employment structure but also, in the future, on EWC organisation. Second, it has emerged how the ownership structure of the Group is characterised by a “chinese boxes” system where parts of the Group are controlled by different companies, but all are lead by the founder. Data has highlighted how the Group, as a whole, has experimented in the last years a positive trend from a turnover and employment point of view and, in addition, it has cruised across the economic-‐financial crisis started at the end of 2008 maintaining its growth trend. Looking at employment and industrial relations, even though each certainly has its specific traits, as highlighted in the previous chapters, we may say that the various areas have some elements in common. First of all, the three sectors have problems in some work organisation modalities, and in the dialogue between representatives and/or union organisations and the company. In particular, it has emerged how a process of outsourcing is underway, especially in some company departments, in particular the production one, but also in distribution, and this is causing critical problems in working places but also in terms of industrial relations. In addition, the present report has highlighted how within the Group dialogue is often difficult. In this context, the establishment of an EWC in the Group seems to be welcomed with great interest by workers, especially because it would represent an occasion to reactivate that coordination among trade unions, even if only in one are, that was never achieved. In addition this is seen as a tool to gather additional information regarding the company, information which is considered to always have been lacking. At the same time it should be kept in mind that some fears have been expressed regarding the establishment of an EWC. First of all, regarding the production area, the difficulties encountered up to now trying to obtain a company level contract, leads to think that there is a potential hostility of the Group towards the establishment of an EWC, also considering the implications that this would have on the company balance . In addition, different approaches to industrial relations that the various involved trade unions have, especially in an international context, may represent an obstacle to the establishment and good functioning of the EWC. Lastly, it has been feared that an EWC may be presented by the company as a 26
sign of distinction, a witness to the existing high quality industrial relations, and this could be used to mask cricial aspect, explained in the previous chapters of this report. Bibliography Cremonini S.p.A., consolidated balance -‐ 31/12/2011, http://www.cremonini.it/data/files/it/file-‐420.pdf . Cremonini S.p.A., R&S – Research and study, Ufficio Studi Mediobanca, info updated 30/6/2012. MARR S.p.A., R&S Research and study, Ufficio Studi Mediobanca, info updated 30/6/2012. MARR S.p.A., financial report 2012, http://www.marr.it/sites/default/files/docs/Relazione%20Finanziaria%20Annuale%20MARR%202012.pdf Web sources Embassy of Angola http://www.ambasciatangolana.com/relazioni-‐economiche?ln=2 Angola Inalca http://www.inalca.it/wps/themes/html/InalcaThemeVuoto/images/shared/AppMappaMondo/img/Angola-‐
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