This excerpt taken from the LUX 6-K filed Jun 4, 2008.
INCREASING INDUSTRIAL OUTPUT
Growing demand in 2007 led the Group to step up last years already high levels of capacity. The Italian plants turned out 1.25 million pieces more than in 2006. This increase in production entailed the hiring of around 1,120 people directly by Luxottica S.r.l.
At the same time, extensions were made to facilities at Agordo and Rovereto (not completed yet), new production lines were installed and the new paint shop at Pederobba was enlarged.
The Italian plants continued to focus on luxury brands and premium products in general, leaving the Groups Chinese facilities to produce other brands.
Increasing output also involved the ongoing process of renewing the entire system of supply forecasting and production planning and monitoring. Programming at Agordo was converted to weekly (as already the case at Pederobba and Sedico), as this can drastically reduce forecasting errors and thereby lowers warehouse obsolescence rates.
Output was also increased as a result of a reduction in lost working hours, partly due to the numerous initiatives to raise awareness of the problem of absenteeism amongst employees.
Events were also organized in a number of plants for employees families, with very positive reactions from the trade unions.
Despite these efforts, the Group still needed to take on temporary labor to cover production peaks in 2007. An agreement with the trade unions also made it possible to introduce flexible days in order to scale working days to actual production requirements (agreement dated December 22, 2006 renewing Luxotticas supplementary contract until 2009).
Flexibility, group and individual overtime, shift work and result-oriented bonuses are the main features of Luxotticas new supplementary contract, which aims to achieve greater efficiency in the use of plant while respecting peoples personal and family needs.
All this makes it possible to ensure a rapid response to fluctuations in the market and improve pay and conditions for employees. Luxotticas supplementary agreement also dealt with important new themes such as supplementary insurance, the labor market and training, which will improve conditions for employees over the duration of the new contract.