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Leonardo to meet unions in December to discuss outlook for plant supplying Boeing
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Leonardo to meet unions in December to discuss outlook for plant supplying Boeing
Nov 27, 2024 2:22 AM

MILAN, Italy, Nov 27 (Reuters) - Italy's Leonardo

will meet with unions next month to discuss the

outlook for one of its aerostructures plants, workers'

representatives told Reuters, as it explores options for a

business mainly reliant on Boeing ( BA ).

The Grottaglie plant in the Puglia region manufactures two

sections of Boeing's ( BA ) 787 airplane and delays in the U.S. group's

jet programme have knocked its production rate, with more than

900 of almost 1,200 workers furloughed on a staggered basis

until Jan. 5.

Alessio La Tartara, a local representative for the UILM

union at the plant, told Reuters that representatives of the

main unions would meet with Leonardo executives in Rome in

mid-December to discuss developments in Grottaglie after that

date.

A plan to overhaul the wider aerostructures unit, which

employs around 4,000 people in four plants located in depressed

southern Italy, is expected in the group's strategy update in

March.

CEO Roberto Cingolani said earlier this month the

state-controlled company is looking for new business

opportunities for the division, which cannot be mainly reliant

on a single customer.

Cingolani said Leonardo was considering a carve-out of the

loss-making business as well as alliances with partners to help

restructure it.

"We fear that a carve-out could translate into a loss of

production and jobs, something that would be devastating for the

region," La Tartara told Reuters.

A spokesperson for Leonardo said a date for the talks with

unions has not been scheduled yet.

Since Cingolani's comments on the potential carve-out,

unions have received reassurance from the company that the

aerostructures business would not be sold.

Worker representatives however are seeking more information

about potential partners for the division and the plans for an

overhaul.

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