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Talks between labor unions and Indesit break down

Home-appliance company plans over 1,000 layoffs

21 June, 13:30
Talks between labor unions and Indesit break down (ANSA) - Ancona, June 21 - Meetings between trade union and company representatives from the home-appliance maker Indesit in Rome on Friday to discuss major layoff plans have concluded unsuccessfully, the company said.

Unions FIOM-CGIL, FIM-CISL and UILM, which have been staging strikes since the announcement of sweeping job cuts, called for more protests immediately.

The company said at the beginning of the month that it was set to slash 1,425 positions, including 25 managers, 150 white collar staff and 1,250 factory workers across three Italian manufacturing plants.

Workers must be let go due to production and financial woes triggered by falling sales, the company said.

A 70-million euro restructuring plan was being prepared, the company added.

Investors applauded the plan and shares in Indesit gained 1.9% in value at the announcement during last Tuesday's trading to end the day at 6.39 euros.

Indesit plans to keep only high-end appliance manufacturing in Italy, and to concentrate low-cost appliance manufacturing in Poland and Turkey.