Fiat Lays Off 5,000 Employees at Mirafiori Plant image

Fiat declared that 5, 000 office employees from the Mirafiori plant will be laid off in June and July, three days each month.

“If the top of the company is slowing down, it is a bad sign,” said Edi Lazzi, from the Fiom trade union which represents some workers at Mirafiori.

The company took this decision due to the auto sales in Italy which fell 20% in the first three months, accounting for the company’s fifth year of decline. Fiat fights with low sales in Italy and Europe due to the deep recession all over the continent. The company said that less sales, means less production and implicitly less office staff work. Manufacturing workers at the same plant in Turin have already been laid off temporarily. Without Chrysler’s help, Fiat would have lost 273 million euro.

“Temporary layoff of white-collar workers is very bad news as it shows that the company also has problems at the upper levels,” Edi Lazzi, a Fiom official, said in an e-mailed statement.