Thursday, 2 May 2013

CSC Italy and a Pig In A Poke

News reaches us that the company CSC sold its Italian division to, Deda Group, plans to put some hundreds of people on "Cassa Mobilita" from this summer.

Cassa Mobilita is the scheme whereby companies in Italy can temporarily lay off staff with the government  paying them up to 60% of the salary as a kind of temporary unemployment benefit. At the end of the term the people have to be taken back on.

One wonders if Deda Group knew they would have to do this when they bought CSC Italy or were they sold a Pig In A Poke? The Italians know this term as 'comprare a scatola chiusa'.  The Latin phrase "caveat emptor" might also be appropriate to the situation.

posted by Will Scarlett


Anonymous said...

I would wonder rather just what it was that CSC had to give away to get CSC Italy off its hands.

Clearly Dedagroup/DDWay have been getting rid of large parts of the middle management (Dirigenti) at some considerable cost.

No my view is that Dedagroup knew exactly what they were walking into and only took it because the transaction financed the huge cutbacks in progress - which now include about a quarter of the nameworkforce.

Anonymous said...

"Mobilità" means that people are fired (no one will be taken back on) and starts a social plan (paid by italian state) that, based on the age of the worker, determines the amount of the due subsidy. The maximum amount is 800€ per month and the duration of the subsidy is based on the age of the worker: under 40 twelve months will be given, under 50 twentyfour months and over 50 thirtysix months.
At the moment the number of people fired is 294 on a total amount of 974. Dedagroup is a group of (small) italian companies (the biggest counts about 300 workers) for a total of 700 employees. Does it sound strange? No, because Dedagroup knew perfectly well what was in the box....a lot of money. We're talking of about 20% of the revenues of the whole Dedagroup in a year. If you want to verify this point, look at financial data that CSC published at the end of the last FY.