Ericsson divests in Italy – sells facility to Jabil?

With the Swedish company's Cost and Efficiency program under way, which has already seen its job cuts in Sweden and Germany, it really does not come as a surprise that the company might shake things up in Italy as well. The companies have been in negotiation since earlier this year, perhaps even longer. A potential takeover could impact production levels and employment in the area. However, during the meetings, Jabil has explained that it is developing a business plan, which includes an expansion of production volumes and an expansion of the clientèle, a plan that Ericsson has expressed willingness to support. Ericsson has however confirmed its desire to keep its R&D centers in Italy, according to the press service at the Italian Ministry of Economic Development. The workers at the Caserta plant will also have their say in the matter, and so far the news have been met with mixed feelings. The now reached agreement would guarantee contracts for Ericsson and work for at least 335 employees (out of the facility's roughly 400). After the initial consultation with the employees had a negative outcome negotiations resumed and the workers at the Ericsson facility returned to approve the agreement for the sale. For the next four years (until March 2019) there will be no collective redundancies; for three years (up to March 2018) there will be a guaranteed workload for at least 335 employees (out of a current total of just under 400); guarantee contracts Ericsson beyond 2018; as well as the possibilities for individual worker to request and collect a severance pay. The agreement was signed by all five unions present (FIM FIOM UILM UGL and Failms) and by top Italian executives of both Jabil and Ericsson, according to the information from the Italian Ministry of Economic Development.