Stellantis and unions agree to cut 1,820 more jobs in Italy

Automaker Stellantis and its Italian union signed an agreement on July 7 to cut up to 1,820 more workers in Italy this year through voluntary layoffs, worker representatives said.The company said severance compensation will vary based on function and seniority.

Several unions said in a joint statement that manual workers who voluntarily leave their jobs at least four years below the retirement age will be paid no less than 55,000 euros ($55,940) if they leave before September 30. Resignation will also receive an additional 20,000 euros.In addition, the company will also introduce a voluntary separation program for office workers and middle managers.A Stellantis spokesman confirmed the details of the company's agreement with most unions, describing the move as a "positive and innovative approach".

Image credit: Stellantis

Stellantis currently employs around 49,000 people in Italy.FIOM-CGIL, the only metalworkers union not currently signed, said in a separate statement that the total number of voluntary redundancies at Stellantis could exceed 4,000 between 2021 and 2022.

Gianluca Ficco of the UILM union said that with an estimated30 per cent of jobs in the auto industry at risk fromelectrification , it was necessary for carmakers to make the transition in a "socially acceptable" way."With this agreement, we are trying to manage ahead of time the employment impact of the energy transition," he said.