A production halt has been scheduled for Sangemini Glassworks (central Italy), formerly Avir, managed by the US multinational Owens Illinois and which employs about 90. Management informed unions of i…
A production halt has been scheduled for Sangemini Glassworks (central Italy), formerly Avir, managed by the US multinational Owens Illinois and which employs about 90. Management informed unions of its intention to halt production, which should continue until June 2009, and includes the shutdown of the furnace. The decision is motivated by a sharp decline in orders. According to the company, output of bottles for oil, wine and water is down by about 30% hence the decision to suspend production for an unspecified period of time; inventory levels are considered quite substantial and able to satisfy remaining demand. The production halt brings the need for social funding to lessen the effect on workers: the company has applied for top-up payments for thirteen weeks. The main concern for trade unions is not so much the lay-offs, which are now rampant in the chemical industry, as the intention to turn off the furnace. It is feared that restarting production will not be straightforward.