Controversy over Fincantieri restructuring plan

At the end of May 2010, the shipbuilding company Fincantieri announced a restructuring plan for 2011–2014. The plan initially included 2,551 redundancies and the closure of two of the group's eight production plants, both in Italy. However, following a meeting with the government and trade unions, Fincantieri has withdrawn the plan and the social partners have set up two regional negotiating committees to try and find a solution for the company’s future in the next few months.

Background

Fincantieri is a public Italian company controlled by Fintecna, which is a subsidiary of the Ministry of Economy and Finance involved in restructuring and rationalising companies.

It was formerly a state-controlled company, part of holding company the Institute for Industrial Reorganisation (IRI).

The Fincantieri Group is one of the most important shipbuilding groups in the world. It produces cruise liners, merchant ships and military vessels. In Italy it boasts eight shipbuilding yards and is also active abroad through various subsidiaries, principally located in the US.

The company directly employs about 9,200 people in Italy and approximately 20,000 more are indirectly employed through support services and activities. In 2010, company profits amounted to €2,876 million.

Restructuring plan

In a climate of crisis in the global shipbuilding sector, on 23 May 2011 Fincantieri announced a restructuring plan for 2011–2014 that initially included:

• 2,551 redundancies, which would have affected all its Italian industrial sites and business locations, including management and design offices;

• the closure of two historical industrial shipbuilding yards at Castellammare di Stabia in Naples and Sestri Ponente in Genoa;

• a cut in production at the shipbuilding yard of Riva Trigoso in Genoa with the transfer of military shipbuilding to Muggiano at La Spezia.

Fincantieri’s announcement of this plan provoked tension and protests among its employees across Italy. The most representative trade unions in the sector, the Italian Federation of Metalworkers (Fiom-Cgil), the Italian Metal-Mechanical Federation (Fim-Cisl) and the Union of Italian Metal-Mechanical Workers (Uilm-Uil), jointly announced a series of strikes totalling eight hours, to be carried out at local level in all production plants.

The trade unions also requested two meetings, the first with the Vice-President of the European Commission Antonio Tajani, and the second with the Minister for Economic Development Paolo Romani, to find a solution for the restructuring of Fincantieri.

Results of the negotiations

On 28 May, the trade unions met Commissioner Tajani, who confirmed that the EU would support Fincantieri. The Commissioner also mentioned the possibility of involving the European Investment Bank (EIB) to finance the purchasing of ships, to set up pre-delivery guarantee funds and to finance innovative re-organisation projects aimed at producing more modern ships that pollute less.

On 3 June, the top management of Fincantieri and the national trade unions met at the Ministry of Economic Development. During the meeting, Fincantieri CEO Giuseppe Bono announced the withdrawal of the reorganisation plan. At the end of the meeting Minister Romani announced the setting up of two regional committees, one in Liguria and one in Campania, to find adequate industrial solutions.

The Ministry of Employment will also begin negotiations to define how social shock absorbers (IT9802319F, IT0205204F) will be established at individual plant level. These are traditionally used in Italy to minimise the negative impact of restructuring and redundancies.

Reactions of the social partners

All three trade unions welcomed the withdrawal of the reorganisation plan.

Maurizio Landini, General Secretary of Fiom, said it was an important result, made possible by the protests of Fincantieri workers. Moreover, it represents an important step in the re-launch of a sector that is fundamental for the national economy.

Raffaele Bonanni, General Secretary of Cisl, said it was necessary to guarantee the Fincantieri production plants adequate future prospects through regional, government and EU aid.

Rocco Palombella, General Secretary of Uilm, agreed that the withdrawal of the Fincantieri industrial plan was a positive step.

Sofia Sanz, Cesos