ROME (Reuters) -Automaker Stellantis on Thursday signed a deal with unions to extend for five months a reduced working hours scheme for workers at its historic Mirafiori plant in northern Italy.
The agreement, allowing the company to trim labour costs at a time of soft demand for cars it makes in Italy, mirrors others signed for other Italian factories this month.
Workers on reduced hours face a temporary cut in their salary. The latest agreement for Mirafiori covers the period from September 1 to January 31, Stellantis said in a statement.
Mirafiori is in Turin, the birthplace of Stellantis’ Italian brand Fiat. Once one of Europe’s largest car factories, it has long been in decline.
Stellantis is betting on the hybrid version of the Fiat 500 city car to revive the site, with production expected to start in November.
Gianni Mannori of the Fiom-CGIL trade union called on the company to “quickly assign another model” to Mirafiori, in order to sustain its activity.
Stellantis, which was born in 2021 from the merger of Fiat-Chrysler and Peugeot-parent PSA, last year saw its Italian car production slide to the lowest level in almost 70 years.
(Reporting by Alvise Armellini, editing by Keith Weir)
