Electrolux: 1,718 redundancies. Ursus: "Inadmissible plan"

Electrolux has presented an industrial plan that predicts 1,719 redundancies in its factories in Italy, with reductions in staff in 4 plants, closure of a production site and also cuts to research and development staff. A decisive cut, therefore, in the workforce dedicated to the production of household appliances in Italy. A program that the Minister of Business Adolfo Urso deemed it “inadmissible” and “unacceptable”both for “the absence of adequate industrial prospects” and for the “employment consequences” and asked the company to “protect workers”. The Regions affected by staff cuts are also standing firm, including Marche and Friuli Venezia Giulia.

New proposal

The unions say they are clearly against the plan Swedish multinational and they ask for its withdrawal, underlining that no negotiation is possible if the “gun to the head” of redundancies is not removed from the table first. The workers, present with delegations outside the Mimit, therefore maintain the state of mobilization. At the end of the discussion, Electrolux committed to presenting a new plan in view of the resumption of the table at Mimit scheduled for Monday 15 June. But, during the discussion, the multinational would have underlined the difficulty staying competitive in a complex global context in which raw material prices in Europe are significantly more expensive. After two hours of intense discussion, the company underlined that Italy “remains a strategic country, with a consolidated manufacturing presence in various plants”.

The slides illustrated during the meeting summarize the proposed rationalization plan

The Porcia plant would go from 571 employees to 309 (262 less), Solaro from 615 to 398 (-217), Forlì from 683 to 345 (-338), Susanega from 728 to 418 (-310). For Cerreto d’Esi, however, the closure of the plant is expected, which currently employs 170 people, of which 81 are workers. In addition to the production cuts, there would be 725 redundancies in staff activities, including research and development. Electrolux, according to what is filtered, has highlighted what it considers to be the main competitive gaps that penalize those producing in Europe compared to non-European competition.

Significantly higher costs for European companies

Steel in Europe is approximately 31% more expensive than in China and 27% more expensive than in Thailand. While the hourly cost of labor in Western Europe is equal to 37 euros, compared to 12 in Eastern Europe, 9 in Turkey and 5 in Asia, therefore almost 8 times higher than its Asian competitors. As for the cost of energy, it is equal to 204 euros/MWh in Western Europe, compared to 114 in Asia and 77 in Türkiye. A gap which, according to the company, would make it increasingly difficult to compete on the European market with products imported from areas where industrial costs are significantly lower.

After listening to the company’s proposal, Urso underlined: “We need a new industrial plan based on investments and innovation, protection of the factories and safeguarding employment. We are ready to do our part. Even in the most difficult crises we can reach an agreement that avoids layoffs, keeps the factories open and gives production prospects.” The reference is to the 39 crises that Mimit notes having successfully faced from the beginning of the legislature to the end of 2022. Then the minister invited the EU to recognize the household appliances sector as “strategic”. Also for the Minister for Relations with Parliament, Luca Ciriani, the plan presented is “inadmissible”. Then he hoped that “the company will use” the weeks that separate from the new meeting “to reflect, look for a new solution and withdraw the plan as we asked”.

The unions keep the level of mobilization high

For Fiom secretary Michele De Palma: “To date there is no dramatic situation either from the point of view of financial accounts or from a point of view of production volumes. We want to open a real discussion with the company and the Government to find solutions to safeguard employment and factories”. But first the plan must be withdrawn because “you can’t discuss with the gun of layoffs pointed at your head”. Uilm secretary Rocco Palombella added: “We must not demobilize, but do our part once again. We must all be united together and reiterate that that plan must be rejected, it cannot be discussed. That is not an industrial plan: it is a financial plan that does not look at people but at their interests. They asked us something knowing that we will never accept. We need a new plan that provides for there to be no redundancies, no layoffs, no closures.”