The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Manufacturing Manufacture Of Material For Textiles, Apparel, Leather And Related Products Manufacture Of Textiles 13.2 - Weaving of textiles
European Globalisation Fund (EGF)
Year: 2007, Case number: 6
330 jobs Number of planned job losses
Announcement Date
10 April 2006
Employment effect (start)
1 June 2006
Foreseen end date
Description
Zegna Baruffa produces high-quality woollen clothes and has more than 1,000 employees - around 700 in the plant located in Borgosesia (VC); 400 in the plant located in Valle Mosso (VC) and 25 in the Roasio (VC) plant. In recent years, competition by the low labour-cost countries, especially by China, and an increase in raw material costs contributed to a relevant decrease in Zegna Baruffa production: in 2002 the company produced 10.5 million pieces and in 2005 the production decreased to 8 million pieces. For these reasons, on 10 April 2006, during a meeting with the trade unions, the company announced a reorganisation plan that regards a reduction of around one-third of its total workforce. In a first step, there will be around 100 job cuts. The second part of the reorganisation plan should be implemented in Autumn when around 200 employees should be dismissed (the procedure has not yet been defined in detail). In order to reduce the negative social impact of lay-offs, the company aims to reach an agreement with the trade unions on recourse to the 'social shock absorbers' for all the first 100 redundant workers, such as 'mobility' with a view to early retirement, economic incentives for voluntary resignation or retirement for those who are already eligible, and recourse to the 'ordinary' Wage Guarantee Fund (Cassa integrazione guadagni) to absorb temporary variations in demand. The company and the trade unions have moreover planned some meetings (one on 19 April and another in September) in which the central issue will be how, in Autumn, the other redundant workers will be handled. In November 2006, the company announced the closure of the plant located in Roasio. The 26 workers involved in the companys decision will have the opportunity to move to other units of the company. Moreover, the company and the trade unions aim to reach an agreement on the recourse of 'social shock absorbers' that, from 2007, should reduce the social impacts of the 330 lay-offs envisaged in the company's reorganisation plan. In particular, the trade unions aims to reach a 'job-security agreement', a company agreement that, in order to avoid staff cuts, provides for a reduction in the working hours and pay of all, or part of, the companys employees.
Sources
12 April 2006: La Stampa
11 April 2006: La Stampa
17 November 2006: La Stampa
Citation
Eurofound (2006), Zegna Baruffa, Internal restructuring in Italy, factsheet number 63329, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/63329.
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