UBI Banca Group

The Group is also considering the application of the new provisions concerning branch
opening hours contained in the renewal agreement, designed to support the rationalisation of
operating costs. Companies will in fact have the freedom, subject to consulting with trade
unions, to set branch opening hours between 8:00 a.m. and 8:00 p.m. with the ability to
extend that period from 7:00 a.m. to 10:00 p.m. by agreement with trade unions.
An agreement was also signed on 29 th January 2012 to extend the national labour agreement
for the senior management of banking, financial and production companies, whereby the
parties agreed to extend the validity of the legal and financial terms of the national labour
contract signed on 10 th January 2008 until 30 th June 2014.
***
On 1 st January 2012, Decree Law No. 201 of 6 th December 2011 – the “Save Italy” decree –
converted into Law No. 214 of 22 nd December 2011 introduced substantial changes to the
pension system, designed to strengthen long term sustainability in terms of pensions as a
percentage of government spending.
The new welfare system involves three types of treatment only:
a) the “old age pension” granted exclusively on the basis of age requirements (62 for women
and 66 for men, with harmonisation at 67 in 2021);
b) “early retirement pension” granted exclusively on the basis of contribution requirements (42
years and one month for men in 2012 and 41 years and one month for women both
increased by one month in each year following 2012);
c) as an exception for those meeting the old length of service (level 96 for workers on employee
contracts) and age (60 and at least 20 years of contributions for women) requirements for a
pension in 2012, a pension can be granted when the age of 64 is reached.
Furthermore, the requirements specified in a) and b) above, must be updated every three years
from 2013 on the basis of life expectation data.
The sudden and unprogrammed increase in pension age requirements summarised above
resulted in substantial changes to potential redundancies scheduled in the Business Plan of
the UBI Banca Group for the two year period 2014-2015, the concrete conditions of which are
still being defined. This considerably reduces the number of employees who could be retired.
The “General Leaving Incentive Proposal” made by the Group in March 2012 falls within this
context. It is designed for employees who are covered by the safeguards provided for by the
aforementioned “Save Italy” decree for those who met pension requirements by 31 st December
2011.
Remuneration and incentive policies
Details of remuneration and incentive policies are given in the remuneration report which is
given in another part of this document. It was prepared pursuant to the “Provisions on
remuneration and incentive policies and practices in banks and banking groups” issued by the
Bank of Italy on 30 th March 2011 and to articles 123-ter of the Consolidated Finance Act and
84-quater of the Issuers’ Regulations.
Further information is given on the matter in the UBI Banca report on corporate governance,
again in an attachment to this document.
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