Italian Automobile Workers Plan National Strike

Italy's Automobile Workers to Strike on October 18 Against Stellantis Production Decline

Italian automobile workers, led by the country's major metalworkers' unions-Fim, Fiom, and Uilm-said they would stage a national strike on October 18, 2024. The protest follows steep production cuts at Stellantis, the largest automaker in Italy, which has been heavily hit by challenges in global markets with weak demand for some models.

Key Reasons for the Strike

The sharp decline in vehicle production-to as many as almost 70% over the last 17 years-at Stellantis's Italian plants stands at the very heart of this strike. The new company, born out of the merger between Fiat-Chrysler and PSA Peugeot, produced hardly 30% compared to its era high. The unions, however, estimate that for 2024, Stellantis would build only 500,000 cars, against the 751,000 units this year. All this is creating an important but particularly disturbing fall in production, seen both in passenger cars and in commercial vehicles, which has resulted in repeated temporary closures and the furlough of workers in several facilities throughout Italy.

This long-term decline in production has created serious apprehension among the workers, particularly relating to job security and even the future of Italy's automotive sector. Stellantis has been in talks with the Italian government to raise production back to one million vehicles by the end of the decade, but so far, there is no deal yet.

Union Demands and Protests

In conjunction with the strike, the trade unions will also stage a national demonstration in Rome the same day to point out the broader economic and industrial problems of the country. The unions urge Stellantis to commit itself to concrete plans for safeguarding jobs and production capacity in Italy, above all with a view to the increasing competition on global markets and changes in market conditions.

Part of the problem is because demand has shifted to electric vehicles of Stellantis, which have not reached company expectations so far and are keeping production slow. The unions want the government to interfere and save the ailing industry by saving jobs.

Broader Industry Context

The strike on October 18 reflects a bigger problem afflicting Italy's automotive industry, which has failed to adapt to changes in the global car market. Even operations in North America, once a mainstay of Stellantis' profitability, have been under pressure in recent months. That puts added pressure on the company's operations in Europe, especially in Italy, where the decline has been most pronounced.

This could well widen into general disruptions in operations at Stellantis and a consequence for the whole Italian motor industry. This also underlines a growing tension between industrial workers and multinational companies in the changes going on within the automotive sector toward electric and autonomous vehicles.

In other words, the strike on October 18th will be a real watershed event for both Stellantis and Italy's automotive workforce, given the long-lasting impact it will have on the industrial future.