Union concerned about possible closure of Manuli factory

By David Shaw, ERJ staff

Ascoli Piceno, Italy -- Union leaders at Manuli Rubber's hose factory in Ascoli Piceno are concerned that the company may never re-open the plant after the summer break. Manuli declined to respond to any questions from ERJ. The company appears to be in the process of moving production from the high cost plant in mid-Italy to lower-cost factories in Poland and China.

The Unione Sindacale di Base (USB) says the Italian government has for years been subsidising the Ascoli factory, but if it closes, with the loss of over 177 jobs, then the government wil not get any tax revenue from the factory. In addition the government gave Manuli cash to open the plant in 1972 under the "Cassa del Mezzogiorno" scheme.

A spokesman for the USB said the union had an agreement with Manuli, signed in November 2009 -- over a year after the main automotive crisis took hold -- under which Manuli would keep mixing, spiral hose production and other production at Ascoli, with a labour force of 160 people. This contrasts with a workforce of 1200 in the 1980s.

At the same time, Manui has closed th eplant from August 2009 - December 2009 as a cost-saving measure following the crisis. The union said the plant re-opened in January 2010 with 160 employees, as agreed. The remaining 215 employees were put on a special government scheme, called Cassa Integrazione under which the government would pay some of the worker's remuneration. As part of this arrangement, said the union, Manuli management promised to invest in the plant and re-employ some of the 215.

According to the union, however, Manuli continues to dis-invest in the Ascoli plant, by moving production equipment out of the Italian factory, into factories in China and Poland

In May 2011, Manuli sacked the 215 workers in the Cassa Integrazione scheme. In addition, it told the union that all the remaining workers would be suspended between 1 Sept until the end of the year, due to the loss of a contract with aircon supplier Carrier SpA. IN this period, the comapny expects only to operate the mixer and spiral hose production in a limited production. Manuli told the unions that from 1 January 2012, it would continue to employ 111 workers.

Meanwhile, the company extended the annual shut-down to 4 weeks from the typical 2 - 3 week shutdown. The unions meanwhile are deeply concerned that machinery has been moved out of the factory and there will be no jobs when they return in September.

The unions said its members have made sacricfices in these last three years since the crisis and that this loyalty shouold be rewarded with continued employment. Further, the union believes the company has distorted its order figures in order to claim Cassa Integrazione. The USB claims that the government has never looked into the figures to see if Manuli's claims are true.

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Parliamentary report into Manuli factory from Italian government (Italian language)

Above report auto-translated from Italian into English

Home page of USB Ascoli division