As reported in Italian newspaper, Il Terreno yesterday – over a thousand Piaggio workers have been laid off until after Christmas as production stops at the Pontedera factory in Italy.
The news follows a drop in global sales caused by economic uncertainties as well as a worrying quarterly report by Piaggio. Many areas of the factory have already stopped production and 1098 employees are looking at an uncertain future. Many of those employees work on a casual basis, rather than on full-time contracts. Some areas of the factory, which produces Vespa (amongst other scooters) will still continue operating until the Christmas holidays begin on December 20th.
306 mechanics laid off
Of those 1098 employees, 306 of them are mechanics. It’s big news locally, with the city council being presented with a motion to provide a “Social safety net” for the temporary contract workers. The motion was rejected.
Worryingly, Piaggio presented the unitary trade union, Rappresentanze Sindacali Unitarie (RSU), with a voluntary redundancy fund for almost 1100 workers which will be in place for the next three weeks.
Parts shortage
It’s not all doom and gloom though. Although the automotive sector has suffered since Covid and the Red Sea blockade caused a shortage of parts, Piaggio still has projects on the go and they are investing to secure a future for the company and its workers. It has a rich history of scooter production and many important brands under its umbrella.
However, the Piaggio news comes in a week when Austrian giants, KTM went into receivership, which shows how delicate the two-wheeled sector is at the minute.
Return to work?
Piaggio will be holding a meeting soon to discuss returning to work in the New Year but there will likely be a staggered return as production slowly gets back underway. This will be dictated by stock levels and the ongoing supply of materials.
A meeting is also scheduled for early December at the Pisan Industrial Union where changes to employee contracts are likely to be discussed. A performance-related bonus has been on the cards for a while and many workers have been waiting to be taken on full-time rather than be left on fixed-term contracts with no certainty of a permanent job.
We’ll be keeping an eye on this developing situation but we wish Piaggio and their employees a happy resolution and a quick return to full production.
Don’t panic
If you’ve ordered a new Vespa GTS 310, (or another Vespa/Piaggio model) don’t panic. This downturn in production comes at the end of a difficult 2024 for many manufacturers and retailers. It’s the quiet part of the season and I’m sure the factory will be back to full production in the New Year.
Let’s hope this gets sorted for all concerned..