By Marc Navarro Gonzalez

Telecom Italia SpA (TIT.MI) said Tuesday that it reached an agreement with trade unions to cut labor costs through a reduction of working hours and early-retirement plans.

The Italian operator said that it will offer voluntary early-retirement plans to 4,500 employees whose jobs were due to be cut.

"Workers who have accrued the minimum requirements for their pension by December 31, 2025 will be able to retire early, on a voluntary basis," the company said in a statement.

Telecom Italia added it will offer so-called defensive solidarity contracts to about 30,000 employees in Italy. The solidarity program, which will start on June 19 for a period of 12 months, consists on a reduction of working hours, the company said.

The telecommunications company said that the agreed measures will be submitted to the workers for approval in the coming days.

Write to Marc Navarro Gonzalez at marc.navarro@dowjones.com

(END) Dow Jones Newswires

June 12, 2018 08:25 ET (12:25 GMT)

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