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    Italy’s automotive workers strike after 20 years

    European Newsdesk Posted on

    Workers in Italy’s struggling automotive sector are holding their first national strike in 20 years. Tens of thousands of car workers took to the streets of Rome, waving union flags and carrying banners to protest against poor working conditions in the car industry.

    The three major unions in Italy’s automotive sector have urged the government to protect jobs and ensure the future of the country’s car manufacturing industry. Stellantis, the world’s fourth-largest carmaker, is under pressure to provide clarity on its production plans as it faces growing competition and financial challenges.

    Italy’s far-right government has criticized the company for moving assembly plants to lower-cost countries. Production figures from the Italian Federation of Metal Mechanics show that Stellantis’ output in Italy dropped by 40% in the first nine months of 2024 compared to the same period the previous year.

    A report from the trade union stated, “To reach the government’s target of 1 million vehicles by 2030, Stellantis would need to double its current production.” The turbulence surrounding Stellantis has intensified, as the multinational group—formed in 2021 by the merger of Fiat-Chrysler and PSA Peugeot—saw significant declines in production at most of its Italian factories in the first half of 2024. The company has cut its Italian production by nearly 70% over the past 17 years.

    Stellantis CEO Carlos Tavares recently blamed EU carbon emission regulations for driving up production costs, warning that some assembly plants might have to close in response to rising competition from China. Tavares also noted that job cuts could not be ruled out and called for additional government incentives to boost demand for electric vehicles.

    The company, which manufactures Jeep and Chrysler vehicles, recently issued a profit warning, projecting losses of up to €10 billion ($11.2 billion) by the year’s end. Stellantis has already paused the production of the Fiat Panda, with a similar halt planned for the Fiat 500 electric model.

    The uncertainty isn’t limited to Italy. Stellantis’ French factories are also facing concerns, although they are expected to have a three-year production plan in place by mid-November, according to AFP. Meanwhile, Tavares has faced criticism in the U.S. from car dealers and the United Auto Workers union due to poor financial performance and an oversupply of expensive vehicles on dealership lots.

    In an effort to cut costs, Tavares has delayed factory openings, laid off union workers, and offered buyouts to salaried employees. In September, Stellantis announced it was searching for a successor to 66-year-old Tavares as part of a planned leadership transition, though his contract doesn’t expire until 2026, and he may stay longer.

    The ongoing strike reflects growing frustration over the uncertainty surrounding Stellantis’ future plans, with workers like Riccardo Falcetta from the UIL metalworkers union in Bari stating, “We are working one to two days a week when things are good. What we are saying today is that the ecological transition cannot be paid for exclusively by the workers.”

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