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Leonardo to meet unions in December to discuss outlook for plant supplying Boeing
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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
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)
An aerostructure is a component of an aircraft that includes the airframe and other structural elements. These components are essential for the aircraft's integrity and performance.
Corporate strategy is a plan that outlines how a company will achieve its goals and objectives. It includes decisions on resource allocation, business direction, and competitive positioning.
Employment opportunities refer to available jobs or positions within a company or industry. They can vary based on market demand and organizational needs.
A carve-out is a strategy where a company separates a portion of its business into a new entity. This can involve selling or restructuring parts of the business to improve focus or profitability.
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