Identifier
Created
Classification
Origin
09ROME1286
2009-11-20 16:48:00
UNCLASSIFIED
Embassy Rome
Cable title:
ITALY - WORKERS OCCUPY ALCOA FACILITY
how-toVZCZCXRO4370 PP RUEHFL RUEHNP DE RUEHRO #1286 3241648 ZNR UUUUU ZZH P 201648Z NOV 09 FM AMEMBASSY ROME TO RUEHC/SECSTATE WASHDC PRIORITY 2919 RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY INFO RUEHMIL/AMCONSUL MILAN PRIORITY 0337 RUEHNP/AMCONSUL NAPLES PRIORITY 4118 RUEHFL/AMCONSUL FLORENCE PRIORITY 3901 RUEHBS/USEU BRUSSELS PRIORITY 4880
UNCLAS ROME 001286
SIPDIS
E.O. 12958: N/A
TAGS: ECON ELAB IT EU
SUBJECT: 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
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