The first strike in the Italian auto industry after 20 years

The first strike in the Italian auto industry after 20 years

Car factory workers in Italy, who are in a series of difficulties, went on strike for the first time in 20 years, during which tens of thousands demonstrated in Rome demanding better working conditions.

“We work one to two days a week and when things are going well. We demand that the transition to ecological vehicles cannot be solely paid for by the workers,” said Riccardo Falceta, representative of the UIL metal workers’ union in Bari.

The three main unions of the auto sector in Italy are asking the government to preserve their employment and that car manufacturing in Italy has a future, starting with the international consortium of car manufacturers Stelantis, which is based on Italy’s FIAT.

Stellantis, the world’s fourth-largest carmaker, is under pressure to deliver on its production plan as it faces growing competition and financial difficulties.

Italy’s far-right government accuses Stellantis of moving car production to countries with low labor costs.

That multinational group, created in 2021 by the merger of FIAT-Chrysler and PSA Peugeot, had a sharp drop in production in most of its factories in Italy in the first half of this year. Over the past 17 years, FIAT has reduced production in Italy by almost 70 percent.

Stelantis CEO Carlos Tavares recently blamed EU carbon rules for driving up production costs, suggesting the group may be forced to close some assembly plants to face competition from China.

A loss of 10 billion euros?

He said he “can’t rule out” layoffs, reiterating the need for more government incentives to boost demand for electric cars.

Stellantis, which produces Jeep and Chrysler vehicles, was in the spotlight after its warning that it expects to end the year with a loss of up to 10 billion euros.

Tavares has also come under fire from his U.S. car dealers and union in the U.S. for poor financial performance this year, with too many expensive vehicles on dealer lots. The CEO tried to cut costs by delaying the opening of factories, laying off workers and offering to pay for voluntary departures.

Stellantis announced in September that it was looking for a successor to the 66-year-old Tavares as part of a planned management change. Tavares’ five-year contract expires in 2026, but the company hinted at the time that it was possible he could stay beyond that.

Source: Beta

Photo: screenshot, unsplash

Source: bizlife.rs