Acciaierie d'Italia Requests Furlough for Nearly 4,000 Workers Following Production Decline
Significant production drop in Taranto due to an industrial incident sparks concerns about workforce stability.
Acciaierie d'Italia, the company operated under the previously state-owned Ilva plant, has formally requested furlough measures for 3,926 workers, with 3,538 specifically at the Taranto facility.
This move follows a drastic reduction in steel production, reportedly halved, after an incident on May 7 that involved a fire caused by the explosion of a pipe in Blast Furnace 1, leading to judicial seizure of the site.
The incident has severely impacted the Taranto facility, which was already experiencing historically low production levels.
Acciaierie d'Italia contends that the judicial authorization necessary for urgent safety interventions was delayed, having only been granted on the afternoon of Saturday preceding the request, which significantly hampered the company's response efforts.
These critical works, which Acciaierie claims were essential to secure the plant, were expected to be conducted within 48 hours post-incident, but the actual commencement of these activities was not able to move forward until May 12.
In addition to the workers at Taranto, furlough requests also include 178 employees at the Genoa site, 165 from Novi Ligure, and 45 from Racconigi.
The request for temporary layoffs arrives amid critical timing, as it coincides with impending mayoral elections in Taranto and ongoing discussions regarding the potential sale of the facility.
Minister of Enterprises, Adolfo Urso, has remarked on the delays surrounding the authorizations, describing Blast Furnace 1 as 'likely compromised.' Prior to the incident, Acciaierie d'Italia had established a framework agreement with labor unions on March 4, delineating a maximum of 3,062 workers eligible for furlough in rotation among a workforce of nearly 10,000, including approximately 2,680 in Taranto out of about 8,000 staff members.
Currently, the furlough numbers in Taranto had been maintained below 2,000 as two blast furnaces (1 and 4) were operational.
The company has projected production targets of 4 million tons for 2025, a significant increase from the 2 million tons produced in the previous year.
This move follows a drastic reduction in steel production, reportedly halved, after an incident on May 7 that involved a fire caused by the explosion of a pipe in Blast Furnace 1, leading to judicial seizure of the site.
The incident has severely impacted the Taranto facility, which was already experiencing historically low production levels.
Acciaierie d'Italia contends that the judicial authorization necessary for urgent safety interventions was delayed, having only been granted on the afternoon of Saturday preceding the request, which significantly hampered the company's response efforts.
These critical works, which Acciaierie claims were essential to secure the plant, were expected to be conducted within 48 hours post-incident, but the actual commencement of these activities was not able to move forward until May 12.
In addition to the workers at Taranto, furlough requests also include 178 employees at the Genoa site, 165 from Novi Ligure, and 45 from Racconigi.
The request for temporary layoffs arrives amid critical timing, as it coincides with impending mayoral elections in Taranto and ongoing discussions regarding the potential sale of the facility.
Minister of Enterprises, Adolfo Urso, has remarked on the delays surrounding the authorizations, describing Blast Furnace 1 as 'likely compromised.' Prior to the incident, Acciaierie d'Italia had established a framework agreement with labor unions on March 4, delineating a maximum of 3,062 workers eligible for furlough in rotation among a workforce of nearly 10,000, including approximately 2,680 in Taranto out of about 8,000 staff members.
Currently, the furlough numbers in Taranto had been maintained below 2,000 as two blast furnaces (1 and 4) were operational.
The company has projected production targets of 4 million tons for 2025, a significant increase from the 2 million tons produced in the previous year.
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