ITALY - WORKERS OCCUPY ALCOA FACILITY

UNCLAS ROME 001286 SIPDIS E.O. 12958: N/A TAGS: ECON ELAB IT EU SUBJECT: ITALY - WORKERS OCCUPY ALCOA FACILITY ¶1. Workers at the Sardinia plant of the US multinational ALCOA have occupied the plant, detaining the Italian management. The company announced plans to close the plant and another in the Veneto region temporarily after the European Commission on November 19 confirmed an earlier ruling that the company must reimburse the Italian government 270 million euros it received since 2006 in illegal electricity subsidies. Approximately 1000 workers at both plants stand to lose their jobs. ALCOA had enjoyed preferential electricity rates until 2005 under a contract with Italy's para-statal electric monopoly ENEL that the EC had sanctioned, deeming it a free market transaction. After that contract expired, the GOI sought to keep the plants operating by agreeing to subsidize higher electric rates directly. ¶2. This summer post assisted ALCOA management in setting up a meeting with GOI officials. ALCOA had told us that the EU-ordered reimbursement would force them to shut down the plants. We have not been contacted by the company regarding this plant seizure. THORNE