EMCC European Monitoring Centre on Change

Fiat

Company/Organisation:
Fiat

Geographic Location

Country: Italy
Region: Palermo; Sicilia; Isole
Location of affected unit(s): Termini Imerese

Company

Sector: Manufacturing
Manufacture of transport equipment
29.1 - Manufacture of motor vehicles
Number Employed: 1560
Group: Fiat Group

Employment Effects

Announcement Date: 22-12-2009
Planned Job Reductions min: 1560
Planned Job Reductions max: 1560
Type of Restructuring: Closure
Employment Effect Start: 01-01-2012
Foreseen End Date: 01-01-2014
Planned Job Creation: 1300

Additional Information

Fiat announced its 2010-2011 industrial plan envisaging the closure of its plant located at Termini Imerese with the consequent loss of 1,509 jobs.

The company plans the closure by the end of 2011. Moreover, the plan envisages new investments in the other Italian plants with a relevant reorganisation of work.
The Minister of Economic Development has announced the start of negotiations with the company, the trade unions and the local authorities in order to find alternative solutions for the Termini Imerese site.

On 26 November 2011, after long negotiations, Fiat, trade unions, the Ministry of Economic Development and Invitalia reached an agreement that provides various measures in order to support redundant workers. From 1st January 2012 all the 1,560 Fiat workers will benefit to a two-year scheme of extraordinary Wage Guarantee Fund. Moreover, before reaching all the requisites for retirement, 640 workers will benefit to mobility allowances to which Fiat will add economic incentives (EUR 640 monthly for each worker, on average).
Dr Automobiles Group (Dr Motor) - an Italian company which assembles car components - will replace Fiat in the Termini Imerese site. The industrial plan announced by Dr Motor envisages the redeployment of 1,300 workers by the end of 2015.