people hired
thanks to the induced employment
generated by Hera in 2017
million euro
Investments in innovation and
digitalization. 13 projects in smart city,
circular economy and 4.0 utilities
of reused soil
in projects implemented in 2016
and 2017

Job placement under supply contracts with social cooperatives

In 2017, consistently with the provisions of the Protocol signed in 2009 with associations representing social cooperatives, we continued to hold periodic meetings to monitor the use of disadvantaged personnel which the type B social cooperatives use in the management of the work contracts awarded by Hera Group companies. Monitoring observes an operating instruction in accordance with the Protocol signed and follows the Hera procurement guidelines and covers all Group contracts in which social cooperation personnel operate. The total number of job placements made, the type of disadvantages of the individual operators employed in the supply and their qualification within the single contract are checked quarterly. It is thus possible to check the compliance of the job placement project presented at the time of the tender by the supplier and assess it.

Supplies from social cooperatives
  2015 2016 2017
Social cooperatives or consortia (number) 44 50 48
Value of supplied goods/serv. (in thousands of Euro) 46,527 57,180 62,654
Persons facing hardship hired (number) 686 748 807

Workers employed for less than one year were also counted among the hired persons facing hardship.

In 2017, the value of supplies by types of work or services requested by the Hera Group to social cooperatives was over Euro 62 million, up 9.5% compared to the previous year.

Out of the total of the services provided by social co-operatives, over Euro 61 million was assigned for waste management services, amounting to 29.2% of the Group’s total awards for these services. Supplies involved 44 cooperatives or consortia of social cooperatives, hiring 807 persons facing hardship (pursuant to Article 4 of Italian Law 381/91): 528 under permanent contracts and 365 under full-time contracts. At geographic level, the individuals employed were 325 in the Emilia area, and 370 in the Romagna area, leading to an 8% increase at overall level with respect to 2016, 76 in the Triveneto region and 106 in the Marche region.

Hera contributed to the inclusion in the national collective agreement for waste management services (renewed in July 2016) of a specific protection clause for outsourcing in favour of social cooperation. This clause sets forth that a portion of outsourcing for the sweeping, collection, waste transportation activities, cleaning of septic tanks and cleaning of bins, is excluded from the requirement to apply the waste management services Italian collective labour agreement, via the definition of socially inclusive projects. This portion is 5% and can be raised to 15% at company level. Hera applies 15% on the basis of an agreement entered into in March 2012 with the trade union organizations and with the Group’s union co-ordination.

The Valoris economic evaluation model developed by the University of Brescia enables the measurement of the value created by social enterprises for job placement, based on the results of empirical research. In particular, the model makes it possible to quantify the economic impact for the Public Administration of the social integration of type B social cooperatives. The research showed that the benefits essentially derive from lower welfare costs and greater tax revenues due to the payment of income tax on the employment of disadvantaged persons. The lower revenues for the Government deriving from tax and contributions exemptions which type B social cooperative benefit from have been deducted from the benefits. All of this ends up being a benefit for the Public Administration equal, on average, to Euro 4209 in the year for each able-bodied individual facing hardship. The economic benefit for Public Administrations deriving from Hera awarding contracts to social cooperatives can therefore be considered around Euro 3.4 million for 2017.