Electrolux has been taking criticism in Italy over a plan to cut workers‘ salaries in order to stave off the possibility of moving its Italian operations to Eastern Europe, where labour is cheaper.
Local media, citing trade union sources, said Electrolux‘s Italian workers faced up to a 50% reduction in their wages, from around 1,400 Euros to 700-800 Euros a month.
Electrolux has dismissed those reports, saying the salary cut it had put on the table at a meeting with unions Monday was worth around 8%. A spokeswoman said that Electrolux‘ hourly labour costs in Italy amounted to 24 Euros, compared to less than 7 Euros in Poland.
“The plan is drastic and unacceptable,” Rocco Palombella from the UIL trade union told state radio RAI. He called on the government of Prime Minister Enrico Letta to help workers negotiate a better deal with the company.
In response, Italian Industry Minister Flavio Zanonato said he would chair talks with Electrolux bosses, unions and local politicians.
Workers at Porcia, a washing machine plant in north-eastern Italy that risks closure even if the cost-cutting plan is accepted, went on strike on Tuesday, supported by local politicians. Electrolux said it would decide on the site‘s future by April.
Many of the washing machines under the various Electrolux brands such as Zanussi and AEG are produced in the Porcia plant.
For its three other Italian factories, located near Milan, Treviso and in Forli, Electrolux pledged 56.7 million Euros of investment, but also at least 273 redundancies. It said it was ready to review plans if Italian authorities contributed to the restructuring.
High labour costs are one of the main weaknesses of the Italian economy.
The La Repubblica newspaper also noted that production of household appliances in the country dropped by 58% since 2002, and that other industry players, like Indesit, also appear to be in trouble.
