Published by Uma Rajagopal
Posted on November 27, 2024
MILAN, Italy (Reuters) – Italy’s Leonardo will meet with unions next month to discuss the outlook for one of its aerostructures plants, workers’ representatives told Reuters, as it explores options for a business mainly reliant on Boeing.
The Grottaglie plant in the Puglia region manufactures two sections of Boeing’s 787 airplane and delays in the U.S. group’s jet programme have knocked its production rate, with more than 900 of almost 1,200 workers furloughed on a staggered basis until Jan. 5.
Alessio La Tartara, a local representative for the UILM union at the plant, told Reuters that representatives of the main unions would meet with Leonardo executives in Rome in mid-December to discuss developments in Grottaglie after that date.
A plan to overhaul the wider aerostructures unit, which employs around 4,000 people in four plants located in depressed southern Italy, is expected in the group’s strategy update in March.
CEO Roberto Cingolani said earlier this month the state-controlled company is looking for new business opportunities for the division, which cannot be mainly reliant on a single customer.
Cingolani said Leonardo was considering a carve-out of the loss-making business as well as alliances with partners to help restructure it.
“We fear that a carve-out could translate into a loss of production and jobs, something that would be devastating for the region,” La Tartara told Reuters.
A spokesperson for Leonardo said a date for the talks with unions has not been scheduled yet.
Since Cingolani’s comments on the potential carve-out, unions have received reassurance from the company that the aerostructures business would not be sold.
Worker representatives however are seeking more information about potential partners for the division and the plans for an overhaul.
(Reporting by Francesca Landini; Additional reporting by Giulia Segreti in Rome; Editing by Jan Harvey)
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