Industryweek 6689 Italy Strikes Deal Electrolux Save 1200 Jobs

Italy Strikes Deal With Electrolux to Save 1,200 Jobs

May 15, 2014
Italy's government signs a deal with trade unions and representatives of Swedish home appliance maker Electrolux to stave off the threat of closure for one of the company's factories and save 1,200 jobs.

ROME -- Italy's government signed a deal with trade unions and representatives of Swedish home appliance maker Electrolux (IW 1000/278) to stave off the threat of closure for one of the company's factories and save 1,200 jobs.

Economic Development Minister Federica Guidi hailed the deal as "significant" following nine months of talks, while Electrolux Italia chief Ernesto Ferrario said it was the result of a "long and painful process."

The deal will see Electrolux invest around 150 million euros ($206 million) by 2017 and will suspend planned redundancies in exchange for tax breaks for the four plants affected in central and northern Italy.

"This deal shows public money should be spent on firms that do not sack people and do not outsource," said Maurizio Landini, head of the FIOM union.

The agreement has to be voted on by factory workers by May 22 and provides for meetings every six months between trade unionists, company executives and government officials to monitor its implementation.

Electrolux unleashed a wave of protests in Italy in January when it threatened to move production to Poland if its Italian workers did not accept a salary cut.

The company last month announced an unexpected rise in profits for the first quarter and said demand for its products had improved in Europe. It said it had bounced back from losses at the end of 2013 to post a 19% rise in profit to 431 million kronor ($65.6 million, 47 million euros).

Copyright Agence France-Presse 2014

Popular Sponsored Recommendations

Goodridge Boosts Productivity & Saves Costs by Moving to the Cloud!

Dec. 4, 2023
With Infor's cloud solutions, Goodridge has been able to greatly increase overall productivity, cost savings, data visibility, and automation. This case study discusses the many...

3D Printing a More Efficient Factory Floor

Nov. 16, 2023
Today’s additive manufacturing platforms make it simple to print a wide range of high-performing industrial parts as soon as possible and right where you need them — unlocking...

What Is Your Smart Factory IQ?

Sept. 24, 2023
It’s time to put Smart, data-driven manufacturing operations to the test. In this comprehensive whitepaper we show you how to determine the Artificial Intelligence Quotient (AIQ...

Process Mining For Dummies

Nov. 19, 2023
Here it is. Everything you need to know about process mining in a single book, written in the easy-to-understand, hard-to-forget style that ‘For Dummies’ manages so effortlessly...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!