In September 1998, after long negotiations, the Cirio group, a growing Italian food sector multinational, and the Flai-Cgil, Fat-Cisl and Uila-Uil trade unions signed an agreement on a new organisational structure for the group's milk production sector.
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In September 1998, after long negotiations, the Cirio group, a growing Italian food sector multinational, and the Flai-Cgil, Fat-Cisl and Uila-Uil trade unions signed an agreement on a new organisational structure for the group's milk production sector.
The Cirio food-processing group has grown considerably during recent years. It is a company with a long history, controlled today by a high-profile group of employers, Cragnotti and partners, which is also well known because it owns the Lazio football team, which plays in the national championship. The group has total annual sales worth about ITL 2,000 billion and is an important international exporter of canned products and tomato sauce. It controls a Brazil ian company, Cirio Brazil Alimentos, and also sells its products in Portugal and France. Recently, Cirio has also become a shareholder of Del Monte Food Europa. To penetrate the North America n market, Cirio has created, together with Tri-Valley Growers, Cirio North America while the French companyAvril has been entrusted with distribution in Germany and France.
In June 1998, Cirio's management group presented to trade union organisations a restructuring plan that provides for the transfer of all fresh milk production and packaging activities and of all executive activities to the Centrale del latte di Roma (a recently acquired plant located in Rome), which will become Cirio's registered office.
An agreement signed in Naples on 17 September 1998 by management and the sectoral trade unions - Flai-Cgil, Fat-Cisl and Uila-Uil- provides for a reorganisation which will involve plants located throughout Italy and in particular the milk division of the plant located in Frosinone and the executive activities of the plants located in Lodi (Milan), Piana di Monte di Verna (Caserta), S Polo (Piacenza) and Naples.
The reorganisation will involve more than 100 workers but the agreement provides for different possibilities for workers, other than a transfer to Rome:
inter-company mobility (mobility among other group plants located in the same area) is provided for workers close to retirement age. This will make it possible for them to reach retirement age while remaining close to their homes;
external mobility is foreseen for those workers - close to retirement but not eligible for inter-company mobility - who will not accept a transfer to Rome and who will become redundant; and
a one-off payment of ITL 37 million net will be made to encourage workers to accept voluntary severance.
All those workers who do accept a transfer will be refunded for travel and accommodation expenses for 30 days and they will also receive a pay increase of ITL 5 million to ITL 10 million per year according to the location of their former plant.
Eurofound recommends citing this publication in the following way.
Eurofound (1998), New organisation of production agreed at Cirio, article.
