Partial closure or relocation of a production site based in Italy: a complex procedure

There is a notable employment lawmatter that has impacted employees, employers and public institutions in the Port of Trieste for over two years. Here we are speaking of the events which have led up to the acquisition, by a well-known multinational based in Finland, of an important production site in Trieste, Italy.  This new acquisition, which was finalized in the summer of 2024, included a provision for the reconversion of the site.

It all started in 2022 with a decision by the Court of Trieste which denounced the owners for anti-union conduct – more specifically for a violation of a complex and mandatory procedure (introduced by the 2021 Italian Budget Law) which is required prior to a collective dismissal (this Court decision, taken on September 22nd, 2022, can be found under reference RG 362/2022). As a consequence of the violation of the first step of the procedure a discussion was started - within the framework of the same procedure - which also involved local Public institutions.  It concluded in December 2023 with no concrete decisions or agreements being made.

These inconclusive discussions then opened up the ability to prepare for a collective dismissal procedure which would have been finalized by Summer 2024.  This was made possible because the mandatory procedure, indicated above, which tried to find a solution to save jobs had concluded.   However, at the same time, th...