Document:

EX-4.5

   

  Exhibit 4.5

   

  Solidarity Agreement

  On 4 November 2021, in Bari, at 10.30 a.m. and thereafter, at the Conference Hall of the Hotel Excelsior in Bari, the following trade unions organizations and trade union representatives meet – at the invitation of Natuzzi S.p.A. – in order to conduct the joint examination of the possibility of concluding, pursuant to Article 21(5) of Legislative Decree No. 148/2015, a solidarity agreement to avail of solidarity short-time work scheme payments under Article 21(1)(c) of Legislative Decree No. 148/2015. The following are present and have participated in the discussion:

  Natuzzi S.p.A., represented by Messrs. Mario de Gennaro, Domenico Massaro and Maria Patrizia Ragazzo, assisted by Giuseppe Bisceglie of the Bari | Barletta-Andria-Trani chapter of the Confederation of Italian Industry (Confindustria Bari Bat) and by E. Claudio Schiavone.

  The trade union organizations, the unitary trade union representative body (RSU) and the single trade union representative bodies (RSA), in the form of the national trade unions FILLEACGIL, FILCACISL, FENEAL UIL, FILCAMS CGIL, FISASCAT CISL and UILTUCS UIL, represented by Messers. Tatiana Fazi, Claudio Sottile, Fabrizio Pascucci, Barbara Neglia, Marco Demurtas, and Antonio Vargiu, together with the Puglia regional and local branches, the Bari, Matera and Taranto local branches, as well as the unitary trade union and single trade union representative bodies of the Puglia and Basilicata production units and offices (as per the annex).

  ***

  The Parties set out in the exordium hereto have engaged in discussion and joint examination following Natuzzi S.p.A.’s letter of 19 October 2021 on “Initiation of consultation and discussion for a company-wide collective bargaining agreement pursuant to Article 21(5) of Legislative Decree No. 148/2015 and Article 51 of Legislative Decree No. 81/2015”.

  Whereas

  1

  

   

  -Natuzzi S.p.A., with headquarters at Via lazzitiello 47 in Santeramo in Colle (VAT No. 03513760722), is the leading Italian company in the furniture industry.

  -For social security purposes the Company is classified in the industrial sector.

  -The Company’s workforce totalled 1,957 employees as of 30 October 2021 (excluding executives) and consisted of the following:

  •first-line managers		96

  •office / intermediate workers		449

  •factory workers		1,412

  The following are applied to the employees:

  •the National Collective Bargaining Agreement for employees of companies in the Wood and Furniture sector as regards 1,618 workers;

  •the National Collective Bargaining Agreement for employees of companies in the Tertiary, Distribution and Services sector as regards 339 workers.

  This workforce is divided into the following production units as shown in the table below:

  1. Iesce 1-Matera (MT) - Via Appia Antica s.c. Km. 13,500;

  2. Iesce 2 -Santeramo in Colle (RA) - SS 271 for Matera - Km. 50,200;

  3. Laterza (TA) - Contrada Madonna delle Grazie sn;

  4. La Martella and FactoryOutlet - Matera (MT) – Zona Industriale La Martella;

  5. Santeramo in Colle (BA) Experimental Lab., F&E, R&D, Maintenance and Offices - Via lazzitiello 47;

  6. Altamura Graviscella - Altamura (BA) Via Graviscella z.i.;

  7. Milan (Ml) - Via Durini.

  And broken down by category as per the table below:

  2

  

   

  							
	Production Unit
	Address
	FIRST-LINE MANAGERS
	OFFICE WORKERS
	INTERMEDIATE WORKERS
	FACTORY WORKERS
	Total

	Santeramo in Colle (BA)
	Via lazzitiello 47
	87
	283
	14
	93
	477

	Santeramo in Colle (BA)
	SS 271 for Matera Km 50,200
	1
	9
	14
	259
	283

	Milan (MI)
	Via Durini 24
	3
	4
	 
	 
	7

	Matera (MT)
	Via Appia Antica S.C. Km 13,500
	2
	3
	9
	185
	199

	Matera (MT)
	Industrial Zone Locality La Martella
	1
	15
	4
	75
	95

	Laterza (TA)
	C.da Madonna delle Grazie
	2
	22
	28
	380
	432

	Altamura
	Graviscella
	 
	15
	29
	420
	464

	Total
	 
	96
	351
	98
	1,412
	1,957

   

  -In a letter dated 19 October 2021 the Company convened the trade union organizations in order to carry out the prescribed discussion aimed at reaching a collective agreement that is a prerequisite for the application to avail of payments under a special short-time work scheme (CIGS) following the signing of a ‘defensive’ solidarity agreement pursuant to Article 21(1)(c) of Legislative Decree No. 148/2015.

  -During the meeting the Company reiterated that it is strongly committed to industrial and commercial initiatives aimed at increasing competitiveness and strengthening its position on the market and consequently maintaining employment levels.

  -The Company has pointed out that, despite the actions already taken as described above in executing the previous Business Plan and the associated agreements and investments, there are still major issues of competitiveness and product quality compared to the objectives set. This is due to the fact that, pending the implementation of the previous Business Plan, unforeseeable cyclical, commercial and health factors arose with economic effects that could potentially undermine the Company’s survival on the market.

  -On the basis of the new Business Plan, which takes account of the factors that have arisen and that could not be foreseen in the previous one, the Group intends to keep pursuing its policy of strengthening the brand throughout the world by developing a commercial network aimed at increasing sales of its Italian output.

  -For this reason the Company has confirmed that, with a view to relaunching production and gradually solving structural overstaffing, it has prepared the new Business Plan to be developed in accordance with the following guidelines:

  3

  

   

  1.	refocusing of the organization to enhance the global value of the brands with recognition, in the value chain for the consumer, of the special knowledge and know-how of the places of production and related workers and craftsmanship of the Natuzzi brands;

  2.	strong investment in retail, both directly-owned stores and franchising, in order to support a growth in sales and so-called ‘awareness’, i.e. the conscious sharing by the consumer of the Company’s values;

  3.	rightsizing, i.e. organizational reorganization with the reskilling of internal human resources and the hiring of professionals with the missing skills that cannot be acquired through retraining processes;

  4.	boosting of e-commerce as part of a multi-channel approach;

  5.	regaining of competitiveness through investments in production sites, including for Natuzzi Italia output, in accordance with the new logic of Factory 4.0;

  6.	redesign of the organizational processes as part of a Lean Organization approach, in the wake also of a specific and detailed analysis carried out on the matter;

  7. 	strengthening of corporate social responsibility initiatives with particular reference to issues of safety in the workplace, environmental protection and the welfare of workers, as always in a logic of general sustainability of the business.

  -Within the framework of the dialogue and discussions that have been underway for some time with institutions and social partners, the Company has set itself the objective of avoiding traumatic solutions, in order to manage overstaffing through recourse to social safety net measures and tools supporting restructuring programs.

  The Company proceeded to explain why achievement of the objectives of the Plan necessarily entails the reorganization, modification and upgrading of the processes of the Corporate/Office component in parallel with significant investments on the industrial side, all functional to redesigning the production lay out in accordance with the above mentioned logic of Factory 4.0 (cellular manufacturing).

  The checkering-style upgrading of the production plants in order to achieve the foregoing aims will make it necessary to suspend production lines for the time strictly necessary for the reorganization/construction of the new facilities. From that standpoint the use of the social safety net measures outlined here becomes essential in order to ensure, without traumatic solutions or negative repercussions on local employment levels, the management of the human resources that will be surplus to requirements in the implementation of the process of change.

  Moreover, these factors must be combined with the current unpredictability of the world supply chain that at this historical point in time is encountering significant operational disruption that inevitably 

  4

  

   

  affects the competitiveness of the businesses and the continuity of plant operations, to the detriment of projected output. In fact, these past few months it has already been necessary to suspend the activities of part of the production plants and/or entire factories following delays and/or failures in the supply chain due to international shortages or transport problems. Unfortunately, those events are not circumscribed and/or have not ceased and at present it does not seem likely that they will be overcome in the short to medium term.

  There is also the pandemic to contend with, a pandemic that is still in full flow and renders the future uncertain from the point of view of safeguarding employment.

  -Therefore, the new Business Plan presupposes – for the completion of the program and the progressive reabsorption of the excess workforce – recourse to a short-time work scheme on foot of a solidarity agreement pursuant to Article 21(5) of Legislative Decree No. 148/2015 for a minimum time frame of 24 months.

  -Consequently, it is necessary, for the reasons explained above, on the expiry of the Solidarity Agreement on the scheduled date of 6 November 2021, to sign a new solidarity agreement to accompany the Company through this delicate transition phase. Failure to do so would result in a situation whereby 595 FTE workers, between manufacturing/logistics and offices, would be structurally surplus to requirements.

  *********

  Therefore, the Parties agree as follows:

  a)	The recitals shall form an integral part of this Agreement.

  b)	Natuzzi S.p.A. will apply to the Ministry of Labour – pursuant to Article 21 of Legislative Decree No. 148/2015 – to avail of special short-time work scheme payments on foot of a ‘defensive’ solidarity agreement for 24 months from 8 November 2021 to 7 November 2023 that may cover a maximum of 1,489 workers in the organizational and production units located in the Provinces of Bari, Matera, Taranto and Milan, specified below.

   

  5

  

   

  												
	Production Unit
	Address
	FIRST-LINE MANAGERS
	OFFICE WORKERS
	INTERMEDIATE WORKERS
	FACTORY WORKERS
	Total

	Santeramo in Colle (BA)
	Via lazzitiello 47
	87
	283
	14
	93
	477

	Santeramo in Colle (BA)
	SS 271 per Matera Km 50,200
	1
	9
	14
	259
	283

	Milan (MI)
	Via Durini 24
	1
	2
	 
	 
	3

	Matera (MT)
	Via Appia Antica S.C. Km 13,500
	2
	3
	9
	185
	199

	Matera (MT)
	Zona Industriale La Martella
	1
	15
	4
	75
	95

	Laterza (TA)
	C.da Madonna delle Grazie
	2
	22
	28
	380
	432

	Total
	 
	94
	334
	69
	992
	1,489

   

  * *

  c)	Accordingly, the payments will be required for the duration of 24 months in light of the above.

  d) 	The reduction in working hours, compared with an average weekly working time of 40 hours, will be structured on a monthly basis and will entail an average reduction in working hours corresponding to 595 full-time equivalents, meaning a 40% reduction considering the number of potential workers affected equal to 1,489.

  e)	Without prejudice to the average reduction of 40% in working hours, the maximum individual reduction will be implemented in such a way as to ensure compliance with the percentage set by Legislative Decree No. 148/2015 consisting of an average per capita reduction of 70% over the period that the payments are made.

  f) 	In the event of suspensions of work in individual production units that involve a portion of the workforce characterized – within the Company’s own organizational chart – by the same level and qualifications, the Company will proceed to distribute the hourly reduction under this Solidarity Agreement in such a way as to ensure homogeneous reduction mechanisms during the period of the Plan.

  g) 	Having regard to technical, organizational and production needs, including with reference to the current global supply chain situation and the trend of the flow of orders compared to market demand, taking into account the specific needs of individual Plants/Departments/Areas and in order to guarantee essential services, the Parties agree that different solutions may be required within the framework of the overall average reduction, both in vertical form (single days) and in horizontal form (hourly reduction on a daily basis). The above in relation to production rationalization and the needs of the various departments, in terms of productivity, quantity, quality and specific product 

  6

  

   

  features and in order to ensure adequate flexibility, rapid reaction times and manufacturing balance. A different hourly work schedule may be considered for personnel deemed to be irreplaceable due to the specific skills that they possess in relation to their jobs or for personnel who cannot be replaced by colleagues of a similar level and with similar qualifications.

  h) 	The Parties acknowledge that in view of the organization of work, the system adopted is the only one possible from a technical standpoint and that the suspension of work and/or reduction of working hours, as agreed above, makes it possible to limit redundancies and make better use of the personnel. During the evaluation meetings, a discussion will be held with the social partners after the launch of the solidarity program and information will be provided on the distribution of the suspension of work and/or reduction of working hours on a horizontal and vertical basis, on the basis of and in accordance with technical, organizational, production and logistical requirements, order flows, the need for balance and the specific nature of each plant/department/area.

  i)	With reference to the provisions of Article 21(5) of Legislative Decree No. 148/2015, the Parties expressly agree that, in the event of temporary needs for more work or replacement, without prejudice to the commensurate reduction in the short-time work scheme payments received, the working hours may be increased or the application of the social safety net measures may be temporarily suspended. Any such change shall be notified to the unitary trade union and single trade union representative bodies as well as to the Ministry of Labour and the National Social Security Institution (INPS) pursuant to Article 4 of Ministerial Decree No. 94033 of 13 January 2016.

  j) 	Any overtime work, in exceptional circumstances, will be subject to specific consultation with the unitary trade union representative body and trade union organizations.

  k)	As a result of the above reduction in working hours, any direct, indirect and deferred remuneration as well as contractual and/or statutory benefits will be determined and paid in proportion to actual work performance in accordance with applicable law. With regard to statutory severance pay (TFR), the provisions of Article 21(5) of Legislative Decree No. 148/2015 will apply.

  l) 	The Company undertakes to advance the amount payable by INPS, quantified in accordance with the instructions issued by INPS. That amount will be equal to the short-time work scheme payment due as determined by law on the basis of the percentage of salary lost as a result of the reduction in working hours, subject to subsequent adjustment after the prescribed authorizations.

  m) 	In order to streamline inspections and make them more efficient, the Company will request that it be authorized to centralize them at the Bari local labour inspectorate (ITL).

  n) 	The measures set out in the program presented by the Company will be the subject matter of specific meetings between the Parties at the Company’s offices, normally every two months or upon request, 

  7

  

   

  in order to assess the management of the Solidarity Agreement and developments in the Company’s situation.

  o)	The list of names of employees covered by the Solidarity Agreement application is attached hereto and forms an integral part hereof.

  p) 	In order to facilitate the reabsorption of the structurally excess workforce during the term of the Solidarity Agreement, alternative forms of managing it will also be assessed, through voluntary incentives, including steps aimed at meeting retirement requirements, support for entrepreneurship projects, redeployment within the framework of business plans for diversification of production, and permanent part-time agreements.

   

  By signing these minutes the Parties acknowledge that they have concluded the joint examination and have reached the agreement referred to in Article 21(5) of Legislative Decree No. 148 of 2015 and have, by signing these minutes, remedied any formal defect.

   

  Read, confirmed and signed

   

   

  			
	The Company
	Trade Union Organizations
	RSU

	/SS/[ILLEGIBLE]
	/SS/[ILLEGIBLE]
	/SS/[ILLEGIBLE]

   

   

  8

  

   

  Solidarity Agreement

  On 5 November 2021, in Bari, at 10.30 a.m. and thereafter, at the headquarters of the Bari | Barletta-Andria-Trani chapter of the Confederation of Italian Industry (Confindustria Bari Bat) in Bari, the following trade unions organizations and trade union representatives meet – at the invitation of Natuzzi S.p.A. – in order to conduct the joint examination of the possibility of concluding, pursuant to Article 21(5) of Legislative Decree No. 148/2015, a solidarity agreement to avail of solidarity short-time work scheme payments under Article 21(1)(c) of Legislative Decree No. 148/2015. The following are present and have participated in the discussion:

  Natuzzi S.p.A., represented by Dr. Mario de Gennaro and Dr. Maria Patrizia Ragazzo, assisted by Giuseppe Bisceglie of the Bari | Barletta-Andria-Trani chapter of the Confederation of Italian Industry (Confindustria Bari Bat).

  AND

  Confederation Cobas-Cobas of Private Work, represented by Dr. Felice Dileo;

  Trade Union of Base Private Work, represented by Pierpaolo Corallo;

  together with the unitary trade union representative body (RSU) of Ginosa and the single trade union representative bodies (RSA) Cobasa Santeramo Corporate.

  ***

  The Parties set out in the exordium hereto have engaged in discussion and joint examination following Natuzzi S.p.A.’s letter of 19 October 2021 on “Initiation of consultation and discussion for a company-wide collective bargaining agreement pursuant to Article 21(5) of Legislative Decree No. 148/2015 and Article 51 of Legislative Decree No. 81/2015”.

  Whereas

  -Natuzzi S.p.A., with headquarters at Via lazzitiello 47 in Santeramo in Colle (VAT No. 03513760722), is the leading Italian company in the furniture industry.

  -For social security purposes the Company is classified in the industrial sector.

  -The Company’s workforce totalled 1,957 employees as of 30 October 2021 (excluding executives) and consisted of the following:

  •first-line managers		96

  •office / intermediate workers		449

  •factory workers		1,412

  The following are applied to the employees:

  9

  

   

  •the National Collective Bargaining Agreement for employees of companies in the Wood and Furniture sector as regards 1,618 workers;

  •the National Collective Bargaining Agreement for employees of companies in the Tertiary, Distribution and Services sector as regards 339 workers.

  This workforce is divided into the following production units as shown in the table below:

  1. Iesce 1-Matera (MT) - Via Appia Antica s.c. Km. 13,500;

  2. Iesce 2 -Santeramo in Colle (RA) - SS 271 for Matera - Km. 50,200;

  3. Laterza (TA) - Contrada Madonna delle Grazie sn;

  4. La Martella and FactoryOutlet - Matera (MT) – Zona Industriale La Martella;

  5. Santeramo in Colle (BA) Experimental Lab., F&E, R&D, Maintenance and Offices - Via lazzitiello 47;

  6. Altamura Graviscella - Altamura (BA) Via Graviscella z.i.;

  7. Milan (Ml) - Via Durini.

  And broken down by category as per the table below:

  							
	Production Unit
	Address
	FIRST-LINE MANAGERS
	OFFICE WORKERS
	INTERMEDIATE WORKERS
	FACTORY WORKERS
	Total

	Santeramo in Colle (BA)
	Via lazzitiello 47
	87
	283
	14
	93
	477

	Santeramo in Colle (BA)
	SS 271 for Matera Km 50,200
	1
	9
	14
	259
	283

	Milan (MI)
	Via Durini 24
	3
	4
	 
	 
	7

	Matera (MT)
	Via Appia Antica S.C. Km 13,500
	2
	3
	9
	185
	199

	Matera (MT)
	Industrial Zone Locality La Martella
	1
	15
	4
	75
	95

	Laterza (TA)
	C.da Madonna delle Grazie
	2
	22
	28
	380
	432

	Altamura
	Graviscella
	 
	15
	29
	420
	464

	Total
	 
	96
	351
	98
	1,412
	1,957

   

  -In a letter dated 19 October 2021 the Company convened the trade union organizations in order to carry out the prescribed discussion aimed at reaching a collective agreement that is a prerequisite for the application to avail of payments under a special short-time work scheme (CIGS) following the signing of a ‘defensive’ solidarity agreement pursuant to Article 21(1)(c) of Legislative Decree No. 148/2015.

  -During the meeting the Company reiterated that it is strongly committed to industrial and commercial initiatives aimed at increasing competitiveness and strengthening its position on the market and consequently maintaining employment levels.

  10

  

   

  -The Company has pointed out that, despite the actions already taken as described above in executing the previous Business Plan and the associated agreements and investments, there are still major issues of competitiveness and product quality compared to the objectives set. This is due to the fact that, pending the implementation of the previous Business Plan, unforeseeable cyclical, commercial and health factors arose with economic effects that could potentially undermine the Company’s survival on the market.

  -On the basis of the new Business Plan, which takes account of the factors that have arisen and that could not be foreseen in the previous one, the Group intends to keep pursuing its policy of strengthening the brand throughout the world by developing a commercial network aimed at increasing sales of its Italian output.

  -For this reason the Company has confirmed that, with a view to relaunching production and gradually solving structural overstaffing, it has prepared the new Business Plan to be developed in accordance with the following guidelines:

  1.	refocusing of the organization to enhance the global value of the brands with recognition, in the value chain for the consumer, of the special knowledge and know-how of the places of production and related workers and craftsmanship of the Natuzzi brands;

  2.	strong investment in retail, both directly-owned stores and franchising, in order to support a growth in sales and so-called ‘awareness’, i.e. the conscious sharing by the consumer of the Company’s values;

  3.	rightsizing, i.e. organizational reorganization with the reskilling of internal human resources and the hiring of professionals with the missing skills that cannot be acquired through retraining processes;

  4.	boosting of e-commerce as part of a multi-channel approach;

  5.	regaining of competitiveness through investments in production sites, including for Natuzzi Italia output, in accordance with the new logic of Factory 4.0;

  6.	redesign of the organizational processes as part of a Lean Organization approach, in the wake also of a specific and detailed analysis carried out on the matter;

  7. 	strengthening of corporate social responsibility initiatives with particular reference to issues of safety in the workplace, environmental protection and the welfare of workers, as always in a logic of general sustainability of the business.

  -Within the framework of the dialogue and discussions that have been underway for some time with institutions and social partners, the Company has set itself the objective of avoiding traumatic solutions, 

  11

  

   

  in order to manage overstaffing through recourse to social safety net measures and tools supporting restructuring programs.

  The Company proceeded to explain why achievement of the objectives of the Plan necessarily entails the reorganization, modification and upgrading of the processes of the Corporate/Office component in parallel with significant investments on the industrial side, all functional to redesigning the production lay out in accordance with the above mentioned logic of Factory 4.0 (cellular manufacturing).

  The checkering-style upgrading of the production plants in order to achieve the foregoing aims will make it necessary to suspend production lines for the time strictly necessary for the reorganization/construction of the new facilities. From that standpoint the use of the social safety net measures outlined here becomes essential in order to ensure, without traumatic solutions or negative repercussions on local employment levels, the management of the human resources that will be surplus to requirements in the implementation of the process of change.

  Moreover, these factors must be combined with the current unpredictability of the world supply chain that at this historical point in time is encountering significant operational disruption that inevitably affects the competitiveness of the businesses and the continuity of plant operations, to the detriment of projected output. In fact, these past few months it has already been necessary to suspend the activities of part of the production plants and/or entire factories following delays and/or failures in the supply chain due to international shortages or transport problems. Unfortunately, those events are not circumscribed and/or have not ceased and at present it does not seem likely that they will be overcome in the short to medium term.

  There is also the pandemic to contend with, a pandemic that is still in full flow and renders the future uncertain from the point of view of safeguarding employment.

  -Therefore, the new Business Plan presupposes – for the completion of the program and the progressive reabsorption of the excess workforce – recourse to a short-time work scheme on foot of a solidarity agreement pursuant to Article 21(5) of Legislative Decree No. 148/2015 for a minimum time frame of 24 months.

  -Consequently, it is necessary, for the reasons explained above, on the expiry of the Solidarity Agreement on the scheduled date of 6 November 2021, to sign a new solidarity agreement to accompany the Company through this delicate transition phase. Failure to do so would result in a situation whereby 595 FTE workers, between manufacturing/logistics and offices, would be structurally surplus to requirements.

  *********

  12

  

   

  Therefore, the Parties agree as follows:

  a)	The recitals shall form an integral part of this Agreement.

  b)	Natuzzi S.p.A. will apply to the Ministry of Labour – pursuant to Article 21 of Legislative Decree No. 148/2015 – to avail of special short-time work scheme payments on foot of a ‘defensive’ solidarity agreement for 24 months from 8 November 2021 to 7 November 2023 that may cover a maximum of 1,489 workers in the organizational and production units located in the Provinces of Bari, Matera, Taranto and Milan, specified below.

   

  												
	Production Unit
	Address
	FIRST-LINE MANAGERS
	OFFICE WORKERS
	INTERMEDIATE WORKERS
	FACTORY WORKERS
	Total

	Santeramo in Colle (BA)
	Via lazzitiello 47
	87
	283
	14
	93
	477

	Santeramo in Colle (BA)
	SS 271 per Matera Km 50,200
	1
	9
	14
	259
	283

	Milan (MI)
	Via Durini 24
	1
	2
	 
	 
	3

	Matera (MT)
	Via Appia Antica S.C. Km 13,500
	2
	3
	9
	185
	199

	Matera (MT)
	Zona Industriale La Martella
	1
	15
	4
	75
	95

	Laterza (TA)
	C.da Madonna delle Grazie
	2
	22
	28
	380
	432

	Total
	 
	94
	334
	69
	992
	1,489

   

  * *

  c)	Accordingly, the payments will be required for the duration of 24 months in light of the above.

  d) 	The reduction in working hours, compared with an average weekly working time of 40 hours, will be structured on a monthly basis and will entail an average reduction in working hours corresponding to 595 full-time equivalents, meaning a 40% reduction considering the number of potential workers affected equal to 1,489.

  e)	Without prejudice to the average reduction of 40% in working hours, the maximum individual reduction will be implemented in such a way as to ensure compliance with the percentage set by Legislative Decree No. 148/2015 consisting of an average per capita reduction of 70% over the period that the payments are made.

  f) 	In the event of suspensions of work in individual production units that involve a portion of the workforce characterized – within the Company’s own organizational chart – by the same level and qualifications, the Company will proceed to distribute the hourly reduction under this Solidarity 

  13

  

   

  Agreement in such a way as to ensure homogeneous reduction mechanisms during the period of the Plan.

  g) 	Having regard to technical, organizational and production needs, including with reference to the current global supply chain situation and the trend of the flow of orders compared to market demand, taking into account the specific needs of individual Plants/Departments/Areas and in order to guarantee essential services, the Parties agree that different solutions may be required within the framework of the overall average reduction, both in vertical form (single days) and in horizontal form (hourly reduction on a daily basis). The above in relation to production rationalization and the needs of the various departments, in terms of productivity, quantity, quality and specific product features and in order to ensure adequate flexibility, rapid reaction times and manufacturing balance. A different hourly work schedule may be considered for personnel deemed to be irreplaceable due to the specific skills that they possess in relation to their jobs or for personnel who cannot be replaced by colleagues of a similar level and with similar qualifications.

  h) 	The Parties acknowledge that in view of the organization of work, the system adopted is the only one possible from a technical standpoint and that the suspension of work and/or reduction of working hours, as agreed above, makes it possible to limit redundancies and make better use of the personnel. During the evaluation meetings, a discussion will be held with the social partners after the launch of the solidarity program and information will be provided on the distribution of the suspension of work and/or reduction of working hours on a horizontal and vertical basis, on the basis of and in accordance with technical, organizational, production and logistical requirements, order flows, the need for balance and the specific nature of each plant/department/area.

  i)	With reference to the provisions of Article 21(5) of Legislative Decree No. 148/2015, the Parties expressly agree that, in the event of temporary needs for more work or replacement, without prejudice to the commensurate reduction in the short-time work scheme payments received, the working hours may be increased or the application of the social safety net measures may be temporarily suspended. Any such change shall be notified to the unitary trade union and single trade union representative bodies as well as to the Ministry of Labour and the National Social Security Institution (INPS) pursuant to Article 4 of Ministerial Decree No. 94033 of 13 January 2016.

  j) 	Any overtime work, in exceptional circumstances, will be subject to specific consultation with the unitary trade union representative body and trade union organizations.

  k)	As a result of the above reduction in working hours, any direct, indirect and deferred remuneration as well as contractual and/or statutory benefits will be determined and paid in proportion to actual 

  14

  

   

  work performance in accordance with applicable law. With regard to statutory severance pay (TFR), the provisions of Article 21(5) of Legislative Decree No. 148/2015 will apply.

  l) 	The Company undertakes to advance the amount payable by INPS, quantified in accordance with the instructions issued by INPS. That amount will be equal to the short-time work scheme payment due as determined by law on the basis of the percentage of salary lost as a result of the reduction in working hours, subject to subsequent adjustment after the prescribed authorizations.

  m) 	In order to streamline inspections and make them more efficient, the Company will request that it be authorized to centralize them at the Bari local labour inspectorate (ITL).

  n) 	The measures set out in the program presented by the Company will be the subject matter of specific meetings between the Parties at the Company’s offices, normally every two months or upon request, in order to assess the management of the Solidarity Agreement and developments in the Company’s situation.

  o)	The list of names of employees covered by the Solidarity Agreement application is attached hereto and forms an integral part hereof.

  p) 	In order to facilitate the reabsorption of the structurally excess workforce during the term of the Solidarity Agreement, alternative forms of managing it will also be assessed, through voluntary incentives, including steps aimed at meeting retirement requirements, support for entrepreneurship projects, redeployment within the framework of business plans for diversification of production, and permanent part-time agreements.

   

  By signing these minutes the Parties acknowledge that they have concluded the joint examination and have reached the agreement referred to in Article 21(5) of Legislative Decree No. 148 of 2015 and have, by signing these minutes, remedied any formal defect.

   

  Read, confirmed and signed

   

   

  			
	The Company
	Trade Union Organizations
	RSU/RSA

	/SS/[ILLEGIBLE]
	/SS/[ILLEGIBLE]
	/SS/[ILLEGIBLE]

   

  15EX-4.6

  Puglia Region

  Monitoring Committee for the Economic Production System and Crisis Areas

  Exhibit 4.6

   

   

  RECORD OF AGREEMENT

  Trade Union Consultation

   pursuant to Articles 24 and 22-ter of Legislative Decree No. 148 of 14 September 2015

  At 10 a.m. on the 8th day of the month of February in the year 2022, further to a request for trade union consultation pursuant to Article 24 of Legislative Decree No. 148/2015 sent by the Company Natuzzi S.p.A. and the subsequent calling of a meeting by the Chairman of the Monitoring Committee for the Economic Production System and Crisis Areas (SEPAC) of the Puglia Region, Leo Caroli, who chairs and coordinates the remotely-held meeting with the technical support of the secretary Savino Del Mastro, the following parties meet:

  •the Puglia Region Monitoring Committee for the Economic Production System and Crisis Area: represented by the Chairman Leo Caroli and members Paolo Di Schiena, Basile Stefano and Rocco Santochirico;

  •the Industrial Crisis Areas Section: represented by Elisabetta Biancolillo;

  •the Puglia Regional Agency for Active Labour Policies (ARPAL): represented by Nicola Trisolini and Antonio Catella;

  •Natuzzi S.p.A.: represented by Mario de Gennaro, Director of Human Resources and Legal WW, Maria Patrizia Ragazzo, for Trade Union Relations and HRBP Italy Manufacturing, and Leonardo Lamanna, as HR Operational and Labor Cost, assisted by Mr. Giuseppe Bisceglie of the Bari | Barletta-Andria-Trani chapter of the Confederation of Italian Industry (Confindustria Bari Bat) and the legal advisor Claudio Enrico Schiavone;

  •the UIL Puglia trade union: represented by Andrea Torna;

  •the FENEAL UIL trade union: represented by Fabrizio Pascucci, Mino Paolìcelli and Saverio Loiudice;

  1

  

  Puglia Region

  Monitoring Committee for the Economic Production System and Crisis Areas

  •the FILCA CISL trade union: represented by Claudio Sottile, Margherita Dell’Otto and Antonio Delle Noci;

  •the FILLEA CGIL trade union: represented by Tatiana Fazi, Fernando Mega and Ignazio Marcello Savino;

  •the FILCAMS CGIL trade union: represented by Barbara Neglia and Antonio Miccoli;

  •the FISASCAT CISL trade union: represented by Maria Ruta;

  •the USB Puglia trade union: represented by Pier Paolo Corallo;

  •the COBAS-LP trade union: represented by Felice Dileo;

  •all the local branches and unitary trade union representative bodies (RSU) / single trade union representative bodies (RSA) for FENEAL UIL, FILCA CISL, FILLEA CGIL, FILCAMS CGIL and the single trade union representative bodies for FISASCAT CISL, Puglia USB and Puglia COBAS.

  Today’s meeting concerns the consultation initiated by the Company for the carrying out of the joint examination and the consequent application for a 12-month extension – pursuant to Article 22-ter of Legislative Decree No. 148/2015 – to the special short-time work scheme (CIGS) for business reorganization purposes in place at the Altamura Graviscella (BA) production unit, which currently has a workforce of 463 employees following the consensual termination, pending the consultation, of the employment contract of one employee.

  The Parties conclude today’s discussions with the following outcome.

  Whereas

  –The social safety net measures under the special short-time work scheme for business reorganization purposes in place at the Altamura Graviscella (BA) production unit initially scheduled to expire on 31 December 2020 will cease on 14 February 2022 following the end of the statutory extension thereof in the form of an ordinary short-time work scheme (CIGO) for COVID purposes.

  –Due to the changed scenario and for reasons already discussed that led to the Records of Agreement pursuant to Article 25(7) of Legislative Decree No. 148/2015 of 7 and 8 September 2021 and the subsequent Minutes of the meeting of 2 December 2021 held at the Puglia Region Monitoring Committee for the Economic Production System and Crisis Area, the Company proceeded to reformulate the original Project.

  –The new program has already led to the partial modification of the lay-out, the review of the plant engineering at the Altamura Graviscella (BA) facility, the setting up of the lines and equipment required for the production of the new line of living rooms with integrated and innovative processes.

  2

  

  Puglia Region

  Monitoring Committee for the Economic Production System and Crisis Areas

  –The letter of 4 January 2022 triggering the procedure pursuant to Article 24 of Legislative Decree No. 148/2015 for the granting of a 12-month extension pursuant to Article 22-ter of that same Legislative Decree contains a table setting out the investments planned for the completion of the works.

  –The action already taken as described above in executing the Business Plan and the associated Agreements, including those covering the changes compared to the initial project and the related reorganization program, are complex and of strategic importance that make it necessary to extend the social safety net measures.

  –To this end the Company has set out the training and retraining plan that, agreed between the Parties, is submitted to the Puglia Region for possible co-financing pursuant to Article 22-ter(3) of Legislative Decree No. 148/2015 as regards the measures falling within the remit of the Region in support of the redeployment plan for the workers managed through social safety net measures.

  –The Parties have also agreed on the need to set up further training programs, the technical details of which still have to be finalized and which will focus, in particular, on digitalization, automation, technological innovation, health and safety and corporate social responsibility. For those initiatives, a specific request for funding will be submitted to the National Agency for Active Labour Policies (ANPAL).

  –For the 463 workers concerned, as agreed by the Parties, the application to extend social safety net measures is a tool instrumental to the execution of the Business Plan and, at the same time, a necessary condition to save jobs as a result of the complex and detailed retraining program launched.

  –The Altamura Graviscella (BA) facilities have already started production and the reorganization and transformation process involving the adoption of new production technologies and a new organization of industrial processes and work is underway.

  –This makes it necessary to involve the entire workforce of the production unit concerned in the retraining program, with ensuing application for recourse to the special short-time work scheme in relation to the current workforce of 463, without prejudice to the statutory limits on work suspension percentages.

  –The application to extend the special short-time work scheme for business reorganization purposes at the Altamura Graviscella (BA) production unit, as per the agreed amendment thereof, is consistent with and confirms the rationale for the current measures in place. This is borne out by the causal relationship between the restructuring and reorganization activities underway and the workers in the special short-time work scheme, instrumental to upgrading the skills of personnel not included in the “Living Room Area” and their resulting use in the start-up and implementation of the innovative “Factory 4.0” project. The change regarding what the training concerns does not modify the criteria for selecting personnel, in line with applicable law.

  3

  

  Puglia Region

  Monitoring Committee for the Economic Production System and Crisis Areas

  –Article 22-ter of Legislative Decree No. 148/2015, referred to in Article 234(200) of Law No. 234 of 30 December 2021, provides that special short-time work schemes can be extended by 12 months in order to support employment transitions at the end of schemes established for the purposes set out in Article 21(1)(a) and (b) on condition that certain prerequisites are met, as is the case here.

  –Having concluded the trade union phase, as borne out by the associated records of 17 and 18 January 2022 as well as those concerning training programs of 3 and 7 February 2022, all annexed hereto, the Company Natuzzi S.p.A., requested the Puglia Region (Monitoring Committee for the Economic Production System and Crisis Area) to summon the Parties to engage in the consultation prescribed by Article of 24 Legislative Decree No. 148/2015. At the end of that consultation, set for today’s date the Parties have agreed what is set out below.

  Therefore, the Parties

  agree as follows:

  1)The recitals and annexes shall form an integral part of this Record of Agreement.

  2)At the end of the process referred to in Article 24 of Legislative Decree No. 148/2015, the Company shall apply for an extension to the special short-time work scheme for reorganization purposes from 14 February 2022 to 13 February 2023, pursuant to Article 22-ter of Legislative Decree No. 148/2015, subject to an application to be submitted in the manner and by the deadlines set forth in Article 25 of Legislative Decree No. 148/2015.

  3)In total, a maximum of 463 workers may be suspended on zero hours and/or may be assigned reduced working hours in connection with the further extension of the special short-time work scheme, within the limits of the law, as broken down by category in the following table:

  		
	Category
	No.

	Office Workers
	15

	Intermediate Workers
	29

	Factory Workers
	419

	Total
	463

   

  4)For the purposes of the above, reference is made to the summary breakdown by job, category and level set out in the letter of 4 January 2022 commencing the procedure and the list of names attached hereto.

  5)The retraining program of the personnel engaged at the same time in the execution and development of the “Living Room 4.0 for the Upgrading of the Manufacturing Process Consistent with a Logic of Technological Taxonomy and Cellular Manufacturing” project is aimed at pursuing the agreed objective of redeployment of the personnel involved.

  4

  

  Puglia Region

  Monitoring Committee for the Economic Production System and Crisis Areas

  6)The Parties will evaluate the possibility of availing of inter-sectoral funds and/or forms of co-financing provided by the Puglia Region within the framework of training and active labour policy measures.

  7)The personnel whose working hours are suspended under the special short-time work scheme belonging to areas with excess workers over and above those engaged in training and/or work will be subject to rotation as regards the periods of suspension. Rotation that – subject to different technical, organizational and production requirements – will be promptly highlighted to the unitary trade union representative bodies and will allow for a correct balance between the affected personnel with equivalent job descriptions.

  8)The Company will send the names of the personnel concerned to ANPAL for the purposes of the planned access to the “guarantee of employability of workers” (GOL) program.

  9)For the reasons underlying the Business Plan, namely the specialization in and the quality improvement of Divani&Divani output, the zero-hour work suspensions and/or daily/weekly/monthly reductions in working hours may be implemented in relation to positions and corresponding workers including though differentiating between department/plants and through diversified solutions for different job descriptions, all in order to ensure adequate flexibility and a balance between training and manufacturing activities. To this end, the Company and the unitary trade union representative bodies will continue to discuss issues regarding application as per current practice.

  10)Retraining will be implemented in line with the requirements of the Plan and in collaboration with Local Institutions and Social Partners in order to pursue programs facilitating “conversion” and updating of all the necessary skills. Particular attention will be paid to occupational safety issues in order to develop useful synergies to heighten the awareness of all actors on the topic of safeguarding the health of each employee and strengthening a culture aimed at improving the quality of life.

  11)It is understood that for any matters not expressly regulated by this agreement, reference is made to previous agreements on the subject matter.

  12)In order to allow the most comprehensive discussion on the Business Plan, all Parties will take action following this agreement to ensure that the Ministry for Economic Development (MISE) convenes the National Steering Committee established to that end.

  With the signing of this Agreement, the procedure provided for by Legislative Decree No. 148/2015 will be deemed to have been carried out. Today’s consultation, after checking the regularity and functionality of the audio/video connection and identifying all participants, has been carried out by way of conference call due to the ongoing COVID-19 pandemic.

  Therefore, this Record of Agreement is ratified by each participating trade union organization, which, including on behalf of their own unitary trade union representative bodies, will send a copy of this agreement 

  5

  

  Puglia Region

  Monitoring Committee for the Economic Production System and Crisis Areas

  to the Puglia Region Monitoring Committee for the Economic Production System and Crisis Area, the Puglia Regional Agency for Active Labour Policies, Natuzzi S.p.A. and other trade union organizations, taking care to use the following wording when sending the document: “The undersigned trade union organization, including on behalf of its own single trade union representative bodies, attaches to this certified e-mail the agreement on the special short-time work scheme reached on 8 February 2022, ratifying and confirming all parts and contents thereof”.

  Similarly, Natuzzi S.p.A. will send the same communication to the Puglia Region Monitoring Committee for the Economic Production System and Crisis Area, the Puglia Regional Agency for Active Labour Policies and the participating trade union organizations.

  For the purposes of the validity of the agreement, the exchange and signing of this record of agreement – in the manner mentioned above – separately by each of the Parties in different places and at different times is to be considered as one single act and is fully valid for the purposes of the consent expressed and its legal effects. This record of agreement consists of 5 (five) pages and 3 (three) annexes (record of the preliminary agreement of 3 February 2022, record of the preliminary agreement of 7 February 2022 and the list of names of employees).

  Read, confirmed and signed.

   

  Natuzzi S.p.A.	trade union organizations

   

  Puglia Region Monitoring Committee for the Economic Production System and Crisis Area

   

  Puglia Regional Agency for Active Labour Policies - Collective Disputes Office

   

   

  6

  

   

  RECORD OF PRELIMINARY AGREEMENT

  At 3 p.m. on 3 February 2022 a conference call takes place with the following:

  Natuzzi S.p.A. represented by Mario de Gennaro, Director of Human Resources Organization and Legal WW, Maria Patrizia Ragazzo, for Trade Union Relations and HRBP Italy Manufacturing, Leonardo Lamanna as HR Operational and Labor Cost, and Elisabetta Paradiso as Head of Training, assisted by Giuseppe Bisceglie of the Bari | Barletta-Andria-Trani chapter of the Confederation of Italian Industry (Confindustria Bari Bat) and by the legal advisor Claudio Enrico Schiavone;

  the trade union organizations FENEAL UIL, FILCA CISL, FILLEA CGIL, FILCAMS CGIL, FISASCAT CISL B UILTCUS Puglia and Basilicata regions and specifically:

  –FENEAL UIL represented by Mino Paolìcelli and Saverio Loiudice;

  –FlLCA CISL represented by Margherita Dell’Otto and Antonio Delle Noci;

  –FILLEA CGIL represented by Fernando Mega and Ignazio Marcello Savino;

  and all the local branches and the unitary trade union representative bodies (RSU) and the single trade union representative bodies (RSA) for FENEAL UIL, FILCA CISL, FILLEA CGIL, FILCAMS CGIL, FISASCAT CISL and UILTCUS Puglia and Basilicata.

   

  1)Today’s meeting, which follows that of the Record of the Preliminary Agreement signed between the Parties mentioned in the exordium hereto on 17 January 2022, concerns consultations on the training program and the associated training path.

   

  2)That same Agreement, separately concluded between the Parties, will be incorporated into the more comprehensive agreement to be signed at the Puglia Region for the purposes of Article 22-ter of Legislative Decree No. 148/2015.

   

  The Parties conclude today’s discussions with the following outcome.

  Whereas

  –The Parties signed a Preliminary Agreement on 17 January 2022, which is incorporated herein in full by reference, to extend the special short-time work scheme (CIGS) for business reorganization purposes from 14 February 2022 to 13 February 2023 (12 months), pursuant to Article 22-ter of Legislative Decree No. 148/2015 for 464 workers.

  –The Altamura Graviscella (BA) facilities have already started production and the reorganization and transformation process is underway, which involves the adoption of new production technologies and a new organization of industrial process and work that require further training support for their complete functioning.

  1

  

   

  –To this end the Company, by means of this Agreement, will proceed to set out the contents of the training and retraining plan, which will also be submitted to the Puglia Region and the National Agency for Active Labour Policies (ANPAL) for possible co-financing pursuant to Article 22-ter(3) of Legislative Decree No. 148/2015 as regards the measures falling within the remit of the Region in support of the redeployment plan for the workers managed through social safety net measures.

  –The Parties have thus agreed on the need to set up further training programs, the technical details of which still have to be finalized and which will focus, in particular, on digitalization, automation, technological innovation, health and safety and corporate social responsibility, as described in greater detail below.

   

  Now therefore and in view of the summoning for the purposes of formalising the agreements before the relevant administrative authorities of the Puglia Region, the Parties

   

  agree as follows:

   

  A)The retraining program of the personnel engaged at the same time in the execution and development of the “Living Room 4.0” project for the upgrading of the manufacturing process consistent with a logic of Technological Taxonomy is aimed at pursuing the agreed objective of the redeployment of personnel. It will be supported by the following Training Plan availing of inter-sectoral funds and/or forms of co-financing of the Puglia Region and/or ANPAL within the framework of training and active labour policy measures.

   

  B)Project Description: coherence and effectiveness of the Plan as measured against the intended purposes.

  Natuzzi S.p.A. has launched a business plan whose focus is to create an innovative model for the core manufacturing business in a “Living Room 4.0” logic with innovative processes, layout, machinery and work organization, which require specific training.

  Factory 4.0 is based on the concept of just-in-time that includes within it different working phases: Cutting, Sewing, Assembly, Semi-finished and Finished Product, linked according to a logic of FIFO (first in first out), One Piece Flow.

  The One Piece Flow method involves moving one piece at a time from one work station to another within a unit and/or department without staging.

  In simple language, it means that the pieces to be produced are moved through the work phases from one location to another without any work-in-progress (WIP). The pieces are not stationary and the moved piece leaves space for the arrival of a new piece, coming from the previous work phase.

  2

  

   

  Another element that characterizes the work unit is management by taxonomic product family. A product family is the set of technically similar products that can be produced in the same work unit, using a similar production process and the same machines and working methods (clustering of products by commonality).

  The new elements introduced by this new production logic have led the Company to invest in state-of-the-art production technologies. New machinery and equipment have been purchased for cutting coatings (laser cutting). A semi-automatic quality/packaging line has been installed to improve the efficiency of work phases and flows. The new logistics system has been set to tie in with internal movements using tools that facilitate agile and ergonomic handling. The Andon system with tablet has been introduced for real-time monitoring of workstation KPIs and rapid problem solving (quick response). The Wall Management system has been introduced for real-time shop floor management of all departments.

  Therefore, it is essential to train staff to work in a Factory 4.0 where the human factor and expertise are central elements together with the ergonomics of the workplace and occupational health and safety.

  Purpose of the training plan

  The entire training plan pursues the general aim of modernizing the Production Lines and entails the identification of overall objectives, training actions, content, knowledge and the skills to be achieved.

  Structure of the plan, training objectives and recipients of the training 

  Through its “Living Room 4.0” the Natuzzi Group intends to train its staff by supporting them in the development of skills and abilities needed not only for the new work process but necessary in a labour market that is undergoing a major technological change that ever more rapidly renders skills obsolete. Therefore, workers require upskilling and reskilling. The objectives stated in the National Recovery and Resilience Plan (PNRR) include that of “making European economies and societies more sustainable, resilient and better prepared for the challenges and opportunities of ecological and digital transitions”. This is the framework for the Company’s plan, which aims to train personnel in the use of new machinery and technological tools, which the Company has adopted and uses in its new Factory 4.0 in Altamura Graviscella (BA).

  The plan is based on an interconnected architecture of actions deriving from an analysis of the new scenario and the new production process allied to an evaluation of the new activities envisaged. It has also been informed by a careful mapping of the skills currently possessed by the recipients of the training and the skills that need to be increased and improved to effectively support this important transition (skill gaps). The addressees of this plan need to be trained in the changes introduced by the new work process in order to acquire the expertise needed to use the new equipment. Therefore, they also need to bridge the skills gap in terms of working methods, new work phases and new scheduling 

  3

  

   

  based on a logic of cadences. Above all, they need to know how to use the new high-tech machinery and the instrumentation adopted.

  The training actions have been designed to meet the skills needs of the 3 homogeneous groups of recipients: Tutors (Action # l), Line Operators (Action # 2) and Indirect Production Staff - Warehousemen and General Services (Action # 3).

  The need emerged to design 3 training courses to achieve 3 overall objectives:

   

  			
	Action # 1
	Tutor Training

	Training Unit
	Knowledge and Skills
	Contents

	Living Room 4.0 concept
	Knowledge and application of Lean Production Techniques. Knowledge and application of techniques of flexible production capacity across lines and cross-functionality of job descriptions.
Knowledge and application of WIP (work in progress/advancement) evaluation and measurement techniques across workstations and lines to avoid production downtime.
	Concepts and tools of lean production (5S, CEDAC, root causes analysis, poka-yoke, etc.)

	Introduction to Living Room 4.0

	From the market to the production system: how to achieve flexibility

	Concept of taxonomy and product clustering

	Strategic realignment: from verticalization to differentiation

	Logic of splitting modelling by taxonomic cluster

	Defining features of the work units: setup, capacity, cadences

	Ergonomics and economy of movement in the study of workstations and equipment

	Balancing of lines: operational management in the department

	Process Integration: Quality Control + Cleaning/Packaging

	Process Integration: Joinery + Blanking

   

  4

  

   

  			
	Shop Floor Management
	Knowledge and use of “Shopfloor Management 4.0” devices (managing and sharing of plant performance and individual workstation performance).
	The Q6 Quality System

	Quality in self-control: introduction of the Quality Gates

	Shop Floor Management in real time

	The Quick Response Team

	KPIs: definition and monitoring systems

	Technological Innovations
	Knowledge and application of company-provided devices (tablets, etc.).
	Standards and continuous improvement: approach to maintaining performance

	Scheduling Logic (overview of Master Scheduling)

	Technological innovation: the Andon system

	Technological innovation: the Pick to Light system

	Procurement Logic and system of logistics cadenced on suppliers

   

  			
	Action # 2
	New Production Process Training for Line Operators

	Training Unit
	Knowledge and Skills
	Contents

	Living Room 4.0 Concept
	Knowledge and application of Lean Production Techniques. Knowledge and application of techniques of flexible production capacity between lines and cross-functionality of job descriptions.
	Concepts and tools of lean production (5S, CEDAC, root causes analysis, poka-yoke, etc.)

	Introduction to Living Room 4.0

	Concept of taxonomy and product clustering

	Knowledge and application of WIP (work in 
	Logic of splitting modelling by taxonomic cluster

   

  5

  

   

  			
	 
	progress/advancement) evaluation and measurement techniques across workstations and lines to avoid production downtime.
	 

	Defining features of the work units: setup, capacity, cadences

	Ergonomics and economy of movement in the study of workstations and equipment

	Balancing of lines: operational management in the department

	Process Integration: Quality Control + Cleaning/Packaging

	Process Integration; Joinery + Blanking

	Shop Floor Management
	Knowledge and use of “Shopfloor Management 4.0” devices (managing and sharing of plant performance and individual workstation performance).
	The Q6 Quality System

	Quality in self-control: introduction of Quality Gates

	Shop Floor Management in real time

	The Quick Response Team

	KPIs: definition and monitoring systems

	Technological Innovations
	Knowledge and application of company-provided devices (tablets, etc.) Practical use of software systems on iPad for monitoring and progress of production flows, downtime causes, and individual and collective performance. Use of operational tools for continuous improvement.
	Standards and continuous improvement: approach to maintaining performance

	Scheduling Logic (overview of Master Scheduling)

	Technological innovation: the Andon system

	Technological innovation: the Pick to Light system

	Procurement Logic and system of logistics cadenced on suppliers

   

  6

  

   

  			
	Action # 3
	New Production Process Training for Indirect Production Staff - Warehousemen and General Services

	Training Unit
	Knowledge and Skills
	Contents

	Living Room 4.0 Concept
	Knowledge and application of Lean Production Techniques. Knowledge and application of techniques of flexible production capacity across lines and cross-functionality of job descriptions.
 
	Concepts and tools of lean production (5S, CEDAC, root causes analysis, poka-yoke, etc.)

	Introduction to Living Room 4.0

	Concept of taxonomy and product clustering

	Knowledge and application of Techniques for evaluating and measuring WIP (work in progress/advancement) across workstations and work units to avoid production downtime.
	Defining features of the work units: setup, capacity, cadences

	Ergonomics and economy of movement in the study of workstations and equipment

	Balancing of lines: operational management in the department

	Shop Floor Management
	Knowledge of use of “Shopfloor Management 4.0” devices (managing and sharing of plant performance and individual workstation performance).
	The Q6 Quality System

	Shop Floor Management in real time

	The Quick Response Team

	KPIs: definition and monitoring systems

	Technological Innovations
	Knowledge and application of company-provided devices (tablets, etc.).
	Standards and continuous improvement: approach to maintaining performance

	Scheduling Logic (overview of Master Scheduling)

	Technological innovation: the Andon system

	Technological innovation: the Pick to Light system

   

  7

  

   

  			
	 
	 
	Procurement Logic and system of logistics cadenced on suppliers

   

  Training methods and teaching

  The main location of the training will be in the Altamura Graviscella production plant and it will be delivered by internal and/or external instructors until January 2023. The Company has developed, defined, analysed and detailed the new production process. The internal instructors are engineers and experts who have worked for the Company for many years and have the knowledge and skills suitable to transfer know-how to their colleagues that this Plan concerns. The training content shown in the table above will be developed. The training will be delivered partly in a classroom as regards theory and partly in the department as regards the necessary application/practical training. The project structure is aimed at developing specific skills to achieve the overall objectives mentioned above.

  For training action # 2, which involves the largest number of workers, about 32 editions are planned. The training will be carried out for groups of participants belonging to the same work unit. The work units consist of a minimum of 7 workers to a maximum of 11 (mechanized product line). The classrooms will be able to be organized so as to have up to 14 participants on average. For all the training actions it is envisaged that there will be 16 hours of theory in the classroom, while for the practical part a minimum of 140 hours up to a maximum of 250 hours on average is envisaged, save for any changes that may be made to this Plan.

  Certification of skills

  At the end of the training courses there will be a final test to certify the acquisition of skills to be developed under this Plan. Successful completion of the test will entitle the participant to a certificate of participation in the training course evidencing the skills acquired in accordance with the Guidelines of the Ministerial Decree of 5 January 2021. For this specific activity, the company will rely on a local accredited third party body for training and certification of skills.

  Participation in the GOL (employment guarantee) program

  In view of the forthcoming publication of the ANPAL call for applications to use the New Skills Fund refinanced with React-EU resources, the Company would reduce recourse to social safety net measures by relying on the development and upgrading of skills. Participants in the training actions would witness a change in their working hours envisaged by the short-time work scheme to be replaced by training hours.

   

  8

  

   

  C)The Parties undertake to sign the accord formalizing this present agreement at the offices of the Region, keeping the contents and structure hereof unchanged.

   

  D)The Parties acknowledge that discussions have taken place to analyse the trends that have been recorded so far for the personnel involved in the retraining program taking place both in the new site of Altamura Graviscella (BA) and in the other training sites (PS and Laterza) and that visits with the unitary trade union representative bodies and the Secretariats have been scheduled for the Altamura Graviscella (BA) site in order to gain a better understanding of the technological and flow changes introduced.

   

  E)The Business Plan will be presented to the Ministry for Economic Development (MISE) at the relevant meeting yet to be convened, upon conclusion of the procedure for signing the extension agreement at the offices of the Puglia Region.

   

  F)It is understood that for any matters not expressly regulated by this agreement, reference is made to previous agreements on the subject matter.

   

  Read confirmed and signed

   

  			
	The Company
	Trade Union Organizations
	RR.SS.UU./RR.SS.AA.

	/SS/[ILLEGIBLE]
	/SS/[ILLEGIBLE]
	/SS/[ILLEGIBLE]

   

  Confindustria Bari Bat

  /S/[ILLEGIBLE]

   

   

  9

  

   

  RECORD OF PRELIMINARY AGREEMENT

  At 11.30 a.m. on 7 February 2022 a conference call takes place with the following:

  Natuzzi S.p.A. represented by Mario de Gennaro, Director of Human Resources Organization and Legal WW, Maria Patrizia Ragazzo, for Trade Union Relations and HRBP Italy Manufacturing, and Leonardo Lamanna as HR Operational and Labor Cost, assisted by Giuseppe Bisceglie of the Bari | Barletta-Andria-Trani chapter of the Confederation of Italian Industry (Confindustria Bari Bat) and by the legal advisor Claudio Enrico Schiavone;

  and

  the CONFEDERAZIONE COBAS - COBAS del Lavoro Privato trade union represented by Felice Dilelo;

  the UNIONE SINDACALE DI BASE - USB del Lavoro Privato trade union represented by Pierpaolo CORALLO;

  as well as

  the Ginosa unitary trade union representative body (RSU) / single trade union representative bodies (RSA) for COBAS and USB.

   

  1)Today’s meeting, which follows that of the Record of the Preliminary Agreement signed between the Parties mentioned in the exordium hereto on 18 January 2022, concerns consultations on the training program and the associated training path.

   

  3)That same Agreement, separately concluded between the Parties, will be incorporated into the more comprehensive agreement to be signed at the Puglia Region for the purposes of Article 22-ter of Legislative Decree No. 148/2015.

   

  The Parties conclude today’s discussions with the following outcome.

  Whereas

   

  –The Parties signed a Preliminary Agreement on 18 January 2022, which is incorporated herein in full by reference, to extend the special short-time work scheme (CIGS) for business reorganization purposes from 14 February 2022 to 13 February 2023 (12 months), pursuant to Article 22-ter of Legislative Decree No. 148/2015 for 464 workers.

  –The Altamura Graviscella (BA) facilities have already started production and the reorganization and transformation process is underway, which involves the adoption of new production technologies and a new organization of industrial process and work that require further training support for their complete functioning.

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  –To this end the Company, by means of this Agreement, will proceed to set out the contents of the training and retraining plan, which will also be submitted to the Puglia Region and the National Agency for Active Labour Policies (ANPAL) for possible co-financing pursuant to Article 22-ter(3) of Legislative Decree No. 148/2015 as regards the measures falling within the remit of the Region in support of the redeployment plan for the workers managed through social safety net measures.

  –The Parties have thus agreed on the need to set up further training programs, the technical details of which still have to be finalized and which will focus, in particular, on digitalization, automation, technological innovation, health and safety and corporate social responsibility, as described in greater detail below.

  Now therefore and in view of the summoning for the purposes of formalising the agreements before the relevant administrative authorities of the Puglia Region, the Parties

   

  agree as follows:

   

  A)	The retraining program of the personnel engaged at the same time in the execution and development of the “Living Room 4.0” project for the upgrading of the manufacturing process consistent with a logic of Technological Taxonomy is aimed at pursuing the agreed objective of the redeployment of personnel. It will be supported by the following Training Plan availing of inter-sectoral funds and/or forms of co-financing of the Puglia Region and/or ANPAL within the framework of training and active labour policy measures.

  B)	Project Description: coherence and effectiveness of the Plan as measured against the intended purposes.

  Natuzzi S.p.A. has launched a business plan whose focus is to create an innovative model for the core manufacturing business in a “Living Room 4.0” logic with innovative processes, layout, machinery and work organization, which require specific training.

  Factory 4.0 is based on the concept of just-in-time that includes within it different working phases: Cutting, Sewing, Assembly, Semi-finished and Finished Product, linked according to a logic of FIFO (first in first out), One Piece Flow.

  The One Piece Flow method involves moving one piece at a time from one work station to another within a unit and/or department without staging.

  In simple language, it means that the pieces to be produced are moved through the work phases from one location to another without any work-in-progress (WIP). The pieces are not stationary and the moved piece leaves space for the arrival of a new piece, coming from the previous work phase.

  Another element that characterizes the work unit is management by taxonomic product family. A product family is the set of technically similar products that can be produced in the same work unit, 

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  using a similar production process and the same machines and working methods (clustering of products by commonality).

  The new elements introduced by this new production logic have led the Company to invest in state-of-the-art production technologies. New machinery and equipment have been purchased for cutting coatings (laser cutting). A semi-automatic quality/packaging line has been installed to improve the efficiency of work phases and flows. The new logistics system has been set to tie in with internal movements using tools that facilitate agile and ergonomic handling. The Andon system with tablet has been introduced for real-time monitoring of workstation KPIs and rapid problem solving (quick response). The Wall Management system has been introduced for real-time shop floor management of all departments.

  Therefore, it is essential to train staff to work in a Factory 4.0 where the human factor and expertise are central elements together with the ergonomics of the workplace and occupational health and safety.

  Purpose of the training plan

  The entire training plan pursues the general aim of modernizing the Production Lines and entails the identification of overall objectives, training actions, content, knowledge and the skills to be achieved.

  Structure of the plan, training objectives and recipients of the training

  Through its “Living Room 4.0” the Natuzzi Group intends to train its staff by supporting them in the development of skills and abilities needed not only for the new work process but necessary in a labour market that is undergoing a major technological change that ever more rapidly renders skills obsolete. Therefore, workers require upskilling and reskilling. The objectives stated in the National Recovery and Resilience Plan (PNRR) include that of “making European economies and societies more sustainable, resilient and better prepared for the challenges and opportunities of ecological and digital transitions”. This is the framework for the Company’s plan, which aims to train personnel in the use of new machinery and technological tools, which the Company has adopted and uses in its new Factory 4.0 in Altamura Graviscella (BA).

  The plan is based on an interconnected architecture of actions deriving from an analysis of the new scenario and the new production process allied to an evaluation of the new activities envisaged. It has also been informed by a careful mapping of the skills currently possessed by the recipients of the training and the skills that need to be increased and improved to effectively support this important transition (skill gaps). The addressees of this plan need to be trained in the changes introduced by the new work process in order to acquire the expertise needed to use the new equipment. Therefore, they also need to bridge the skills gap in terms of working methods, new work phases and new scheduling based on a logic of cadences. Above all, they need to know how to use the new high-tech machinery and the instrumentation adopted.

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  The training actions have been designed to meet the skills needs of the 3 homogeneous groups of recipients: Tutors (Action # l), Line Operators (Action # 2) and Indirect Production Staff - Warehousemen and General Services (Action # 3).

  The need emerged to design 3 training courses to achieve 3 overall objectives:

   

  			
	Action # 1
	Tutor Training

	Training Unit
	Knowledge and Skills
	Contents

	Living Room 4.0 concept
	Knowledge and application of Lean Production Techniques. Knowledge and application of techniques of flexible production capacity across lines and cross-functionality of job descriptions.
Knowledge and application of WIP (work in progress/advancement) evaluation and measurement techniques across workstations and lines to avoid production downtime.
	Concepts and tools of lean production (5S, CEDAC, root causes analysis, poka-yoke, etc.)

	Introduction to Living Room 4.0

	From the market to the production system: how to achieve flexibility

	Concept of taxonomy and product clustering

	Strategic realignment: from verticalization to differentiation

	Logic of splitting modelling by taxonomic cluster

	Defining features of the work units: setup, capacity, cadences

	Ergonomics and economy of movement in the study of workstations and equipment

	Balancing of lines: operational management in the department

	Process Integration: Quality Control + Cleaning/Packaging

	Process Integration: Joinery + Blanking

	Shop Floor Management
	Knowledge and use of 
	The Q6 Quality System

   

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	“Shopfloor Management 4.0” devices (managing and sharing of plant performance and individual workstation performance).
	 

	Quality in self-control: introduction of the Quality Gates

	Shop Floor Management in real time

	The Quick Response Team

	KPIs: definition and monitoring systems

	Technological Innovations
	Knowledge and application of company-provided devices (tablets, etc.).
	Standards and continuous improvement: approach to maintaining performance

	Scheduling Logic (overview of Master Scheduling)

	Technological innovation: the Andon system

	Technological innovation: the Pick to Light system

	Procurement Logic and system of logistics cadenced on suppliers

   

  			
	Action # 2
	New Production Process Training for Line Operators

	Training Unit
	Knowledge and Skills
	Contents

	Living Room 4.0 Concept
	Knowledge and application of Lean Production Techniques. Knowledge and application of techniques of flexible production capacity between lines and cross-functionality of job descriptions.
	Concepts and tools of lean production (5S, CEDAC, root causes analysis, poka-yoke, etc.)

	Introduction to Living Room 4.0

	Concept of taxonomy and product clustering

	Knowledge and application of WIP (work in 
	Logic of splitting modelling by taxonomic cluster

   

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	progress/advancement) evaluation and measurement techniques across workstations and lines to avoid production downtime.
	 

	Defining features of the work units: setup, capacity, cadences

	Ergonomics and economy of movement in the study of workstations and equipment

	Balancing of lines: operational management in the department

	Process Integration: Quality Control + Cleaning/Packaging

	Process Integration; Joinery + Blanking

	Shop Floor Management
	Knowledge and use of “Shopfloor Management 4.0” devices (managing and sharing of plant performance and individual workstation performance).
	The Q6 Quality System

	Quality in self-control: introduction of Quality Gates

	Shop Floor Management in real time

	The Quick Response Team

	KPIs: definition and monitoring systems

	Technological Innovations
	Knowledge and application of company-provided devices (tablets, etc.) Practical use of software systems on iPad for monitoring and progress of production flows, downtime causes, and individual and collective performance. Use of operational tools for continuous improvement.
	Standards and continuous improvement: approach to maintaining performance

	Scheduling Logic (overview of Master Scheduling)

	Technological innovation: the Andon system

	Technological innovation: the Pick to Light system

	Procurement Logic and system of logistics cadenced on suppliers

   

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	Action # 3
	New Production Process Training for Indirect Production Staff - Warehousemen and General Services

	Training Unit
	Knowledge and Skills
	Contents

	Living Room 4.0 Concept
	Knowledge and application of Lean Production Techniques. Knowledge and application of techniques of flexible production capacity across lines and cross-functionality of job descriptions.
 
	Concepts and tools of lean production (5S, CEDAC, root causes analysis, poka-yoke, etc.)

	Introduction to Living Room 4.0

	Concept of taxonomy and product clustering

	Knowledge and application of Techniques for evaluating and measuring WIP (work in progress/advancement) across workstations and work units to avoid production downtime.
	Defining features of the work units: setup, capacity, cadences

	Ergonomics and economy of movement in the study of workstations and equipment

	Balancing of lines: operational management in the department

	Shop Floor Management
	Knowledge of use of “Shopfloor Management 4.0” devices (managing and sharing of plant performance and individual workstation performance).
	The Q6 Quality System

	Shop Floor Management in real time

	The Quick Response Team

	KPIs: definition and monitoring systems

	Technological Innovations
	Knowledge and application of company-provided devices (tablets, etc.).
	Standards and continuous improvement: approach to maintaining performance

	Scheduling Logic (overview of Master Scheduling)

	Technological innovation: the Andon system

	Technological innovation: the Pick to Light system

   

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	Procurement Logic and system of logistics cadenced on suppliers

   

  Training and teaching methods

  The main location of the training will be in the Altamura Graviscella production plant and it will be delivered by internal and/or external instructors until January 2023. The Company has developed, defined, analysed and detailed the new production process. The internal instructors are engineers and experts who have worked for the Company for many years and have the knowledge and skills suitable to transfer know-how to their colleagues that this Plan concerns. The training content shown in the table above will be developed. The training will be delivered partly in a classroom as regards theory and partly in the department as regards the necessary application/practical training. The project structure is aimed at developing specific skills to achieve the overall objectives mentioned above.

  For training action # 2, which involves the largest number of workers, about 32 editions are planned. The training will be carried out for groups of participants belonging to the same work unit. The work units consist of a minimum of 7 workers to a maximum of 11 (mechanized product line). The classrooms will be able to be organized so as to have up to 14 participants on average. For all the training actions it is envisaged that there will be 16 hours of theory in the classroom, while for the practical part a minimum of 140 hours up to a maximum of 250 hours on average is envisaged, save for any changes that may be made to this Plan.

  Certification of skills

  At the end of the training courses there will be a final test to certify the acquisition of skills to be developed under this Plan. Successful completion of the test will entitle the participant to a certificate of participation in the training course evidencing the skills acquired in accordance with the Guidelines of the Ministerial Decree of 5 January 2021. For this specific activity, the company will rely on a local accredited third party body for training and certification of skills.

  Participation in the GOL (employability guarantee) program

  In view of the forthcoming publication of the ANPAL call for applications to use the New Skills Fund refinanced with React-EU resources, the Company would reduce recourse to social safety net measures by relying on the development and upgrading of skills. Participants in the training actions would witness a change in their working hours envisaged by the short-time work scheme to be replaced by training hours.

   

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  C)	The Parties undertake to sign the accord formalizing this present agreement at the offices of the Region, keeping the contents and structure hereof unchanged.

   

  D)	The Parties acknowledge that discussions have taken place to analyse the trends that have been recorded so far for the personnel involved in the retraining program taking place both in the new site of Altamura Graviscella (BA) and in the other training sites (PS and Laterza) and that visits with the unitary trade union representative bodies and the Secretariats have been scheduled for the Altamura Graviscella (BA) site in order to gain a better understanding of the technological and flow changes introduced.

   

  E)	The Business Plan will be presented to the Ministry for Economic Development (MISE) at the relevant meeting yet to be convened, upon conclusion of the procedure for signing the extension agreement at the offices of the Puglia Region.

   

  F)	It is understood that for any matters not expressly regulated by this agreement, reference is made to previous agreements on the subject matter.

   

  Read, confirmed and signed

   

   

  		
	COBAS AND USB-LP
	Ginosa RSU/RSA
 

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  The Company

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  Confindustria Bari Bat

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  9

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