MILAN — Just as its chairman Leonardo Del Vecchio through his namesake foundation donated 10 million euros to the new hospital created at the Milan fairgrounds, Luxottica Group is introducing a number of initiatives to support its employees impacted by the coronavirus emergency.
The Italian eyewear giant has pledged to entirely integrate employees’ “cassa integrazione” wage support measure every month. Italy has been in lockdown since March 9 and, following the shut down of all nonessential activities, the Italian government has issued a “Cure Italy” decree allocating 25 billion euros to support the country and allowing companies to request the wage support measure, which contributes to 80 percent of an employee’s salary.
Throughout the “cassa integrazione” period, Luxottica will also contribute 500 euros per month to all employees that will be at work at the group’s plants in Italy.
It is also reprogramming the summer vacations, reducing the closure of the company during the month of August from three weeks to one week around the Ferragosto national holiday on Aug. 15 to support the gradual restart of the activities. Luxottica will guarantee each employee two consecutive weeks and an additional third week to schedule depending on the organization’s needs.
The company has agreed with the unions it will not cut the year-end bonus on results if an employee has been ill and absent due to COVID-19 infection.
In addition, in light of the context and as a sign of solidarity toward all employees in Italy and in the world, Luxottica’s management will take a voluntary pay cut throughout the health emergency. Chief executive officer Francesco Milleri has decided to reduce his own salary by 50 percent.
Unions Filctem Femca Uiltec said the agreement with Luxottica Group “represents an act of responsibility on both parts,” which will help the full recovery of the activities.
Luxottica’s welfare system was first launched in 2009, at the height of the international economic crisis, and also includes health care, micro-credit, counseling and scholarships, among other initiatives.
In 2018, in a 46-billion-euro merger, Luxottica combined with France-based Essilor.
As reported, withdrawing full-year guidance issued last month, EssilorLuxottica reported revenues are slowing down due to the coronavirus in Europe and North America, which it expects to intensify, affecting profitability over the second quarter.