Fiat announces more temporary lay-offs at Pomigliano factory

Production to halt from November 26 to December 9

Fiat announces more temporary lay-offs at Pomigliano factory

Pomigliano, October 25 - Italian automaker Fiat said on Thursday that approximately 2,000 employees in the Pomigliano D'Arco factory near Naples would be laid off temporarily from November 26 through December 9. The move is the latest in a series of temporary lay-offs by the car manufacturer regarding its Pomigliano factory production and employees in the wake of weak demand for its cars on the European market. Last September's results for the Italian automobile manufacturer were exceptionally negative and reflected an 18.5% drop in European sales, largely due to the poor performance of the Italian market. Following the results, Fiat told the government that it would remain in Italy but could not invest in plants or products until the market was right. "Anyone operating in the automotive sector in Europe today is experiencing varying degrees of unhappiness. The European car market is a disaster," Fiat CEO Sergio Marchionne said. Fiat maintains that the number of workers currently employed at the Pomigliano factory is more than adequate, adding that it has already had recourse to temporary layoffs in the last few months due to the poor performance of the European auto market. Fiat has long been locked in dispute with FIOM, the main trade union for the car industry, over fate of its members at the Pomigliano factory. Earlier in October the Rome Court of Appeals ruled that workers laid off from the Pomigliano factory should be rehired. The laid-off employees said that the factory-specific policies implemented at Pomigliano were in violation of the Italian Constitution. Subsequently Fiat suggested that it would be taking legal action against the appeals court. The company said in a statement in October that it reserved the right "to every kind of legal initiative in opposition (to the ruling), including making an appeal to the Supreme Court of Cassation," Italy's highest court.

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