In late October 1999, Italy's Coin group announced the closure of the head office and sale of 70 sales outlets of the Standa retail chain, which it acquired in 1998. The trade unions are concerned about possible job losses, but management has ruled out negative consequences on employment from the restructuring.
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In late October 1999, Italy's Coin group announced the closure of the head office and sale of 70 sales outlets of the Standa retail chain, which it acquired in 1998. The trade unions are concerned about possible job losses, but management has ruled out negative consequences on employment from the restructuring.
Standa is chain of non-food retail shops which has operated in Italy for some decades and which has recently gone through a period of serious financial crisis. In 1998, its owner, Silvio Berlusconi the well-known entrepreneur and politician, sold Standa and its 167 retail outlets to the Coin group, based in Venice.
On 28 October 1999, on the occasion of a meeting with representatives of the commerce sector trade unions affiliated to the Cgil, Cisl and Uil confederations - respectively Filcams, Fisascat and Uiltucs- the management of Coin announced a restructuring plan for Standa. Coin wants to abandon the Standa logo and integrate the chain's activities into the Coin network. Two-thirds of the Standa shops will be turned into Oviesse stores (another chain owned by Coin, and characterised by cheaper products) or in some cases into Coin stores (characterised by more expensive products). The remaining stores (about 70) will be sold to other firms. The restructuring plan also provides for the closure of Standa's head office in Milan. The stores to be sold and the head office between them employ about 2,000 people.
The trade unions totally disagree with the restructuring plan because they state that the agreement signed when Coin bought the 167 Standa stores excluded the possibility of selling them afterwards. The unions criticise the way in which the management of the Coin group has acted, claiming that it has "violated all the agreements signed a few months ago". The unions fear that "the risk is that some of the stores which will be closed may not find a buyer." They have called for the withdrawal of the plan and announced industrial action by all personnel. Paolo Ricotti, managing director of Coin, said that "the restructuring process will not entail any dismissals because the Standa stores will be sold with their personnel and the transformation of the former Standa stores into Oviesse stores will foster the creation of new jobs."
Eurofound recommends citing this publication in the following way.
Eurofound (1999), Restructuring of retail group means end of Standa, article.
