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Italian government warns Whirlpool against layoffs

Italy's government joined unions on Thursday in denouncing reported plans by US appliance giant Whirlpool to cut 1,350 jobs a year after it took over Italian rival Indesit.

Italian government warns Whirlpool against layoffs
Whirlpool plans to cut 1,350 jobs in Italy. Photo: Justin Sullivan/Getty Images North America/AFP

The economic development ministry in Rome said in a statement that it was taking the reports of planned layoffs seriously, and had asked Whirlpool "to confirm its commitment to not undertake unilateral layoffs" as part its agreement to take over Indesit and its workforce of 5,150 people last year.

The ministry expressed "strong displeasure" at the prospect of potentially heavy job losses at Whirlpool plants, "some of which are located in regions of the country already victimised by de-industrialization."

The announcement came after Italian news agencies quoted union officials who had met with government officials over what they claimed was a plan by Whirlpool to boost investment even while slashing staffing.

"Despite a €500 million ($536 million) investment plan over four years and an increased production outlook for Italy, Whirlpool indicated it wants to eliminate 1,350 jobs, including 1,200 in factories and 150 in research centres," said Gianluca Ficco, an official with the Uilm union.

"We expressed our total disagreement, and asked Whirlpool to respect the accords concluded – including the one between Indesit and the (development) ministry signed a little more than a year ago, which stipulates… that no employees can be laid off.

"We count on the government to assist us and make certain this agreement it was part to is respected."

In its statement opposing the purported job reductions, the ministry said it remained ready to negotiate with Whirlpool on ways to preserve as many jobs as possible.

Italy's unemployment rate stands at 12.7 percent, rising to 42.6 percent among young people.

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WORKING IN GERMANY

German steelworkers agree 6.5 percent pay hike after strike

Tens of thousands of steel workers in western Germany will get a 6.5-percent pay hike this year - the biggest jump in three decades - in a settlement that could set the tone for industry as inflation soars.

German steelworkers agree 6.5 percent pay hike after strike

The agreed increase would come into effect “from August 1st”, the IG Metall union in the region of North Rhine-Westphalia said in a statement Wednesday.

The 68,000 steelworkers in the industrial region would also receive a one-off payment of 500 euros for the months of June and July, the union said.

The outcome of the negotiations was “the biggest increase in wages in the steel industry in percentage terms in 30 years,” said IG Metall boss, Joerg Hofmann.

Germany’s largest union, IG Metall launched a strike action at steelworks in the west in May after management failed to meet its demands for an 8.2 percent pay increase.

On Thursday at the peak of the movement, around 16,000 workers across 50 firms downed tools, the union said.

READ ALSO: Should foreign workers join a German union?

“Rising inflation” and the “good economic situation” of the steel industry were the basis for IG Metall’s demands.

Consumer prices rose at a 7.9-percent rate in Germany in May, a record for the country since reunification in 1990 driven by the outbreak of the war in Ukraine.

The smaller number of steelworkers in the east of Germany, who are also seeking an 8.2 percent pay boost, have yet to reach their own agreement.

Negotiations are currently taking place in a number of sectors. In the textile industry, 12,000 workers in the east of Germany sealed a 5.6 percent pay increase at the beginning of May.

Meanwhile, negotiations covering the auto industry, and mechanical and electrical engineering will begin in November.

Despite the agreed rise the onus was still on government to relieve the pressure on workers form rising prices “in the coming months”, IG Metall boss Hofmann said.

Significant wage demands have prompted concerns of a wage-price spiral, where rising pay sustains higher inflation.

The European Central Bank last week said it would raise its interest rates for the first time in over a decade this July as it seeks to stamp out price rises.

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