Stellantis and unions agree on 1,820 additional voluntary redundancies in Italy | Investment News

MILAN (Reuters) – Automaker Stellantis and unions signed an agreement on Thursday to cut up to 1,820 additional workers from the group’s Italian operations this year through voluntary layoffs, worker representatives said.

Incentives will vary by job title and seniority, they said.

Manual workers at least four years below retirement age who agree to leave will receive no less than 55,000 euros ($55,940), plus an additional 20,000 euros if they leave before September 30, indicated the unions in a joint press release.

Office workers and middle managers will also be offered relocation schemes, they added.

The layoffs announced Thursday include 480 departures detailed in a preliminary agreement between Stellantis and the unions, but come on top of more than 700 voluntary job cuts agreed in Italy for this year under a previous agreement.

The Italian-French automaker currently employs around 49,000 people in Italy.

The leftist FIOM-CGIL, the only metalworkers’ union not to have signed the deal, said in a separate statement that voluntary departures at Stellantis could total more than 4,000 units in the 2021-2022 period.

A spokesperson for the automaker confirmed details of the agreement reached with the majority of unions, and said it was “positive and groundbreaking”.

Gianluca Ficco of the UILM union said that by most estimates electrification puts more than 30% of jobs in the automotive industry at risk, making it necessary to manage the transition in a “socially acceptable” way.

“With this agreement, we are trying to manage the impact of the energy transition on employment upstream,” he said.

(Reporting by Giulio Piovaccari; Editing by Jan Harvey)

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