Wednesday, January 25 2006

Berlusconi could send in military against Alitalia wildcat strikers

Italian prime minister Silvio Berlusconi hinted yesterday at sending in the military to break up wildcat strikes which have paralysed Alitalia, the Italian national airline.

''We may get to that point, but we will try to avoid it because we know tragedies could happen,'' he said.

Berlusconi played down those comments, saying the existence of Alitalia was a matter of national pride for Italy.

Berlusconi said Alitalia had to push ahead with a restructuring plan and face down wildcat strikers who have paralysed the airline over the past week.

Alitalia warned customers that up to 250 flights would be cancelled or delayed during the day because of the protest by workers opposed to splitting off the airline's ground operations -- a core part of CEO Giancarlo Cimoli's restructure plan.

''I don't think it's possible not to go ahead with the plan presented by Cimoli to international investors, not without reimbursing those investors with the capital they put in,'' Berlusconi told RAI radio.

The strike, which has forced Alitalia to cancel hundreds of flights over the past six days, has come just weeks after the company raised 1 billion euros ($1.2 billion) from a do-or-die capital increase.

Berlusconi is walking a delicate political line ahead of a general election scheduled for April 9. As a centre-right economic liberal he backs the modernisation plan, but is also wary of any prolonged, bitter dispute in the run-up to the vote.

Alitalia's shares fell nearly 9 per cent on Monday after Labour Minister Roberto Maroni said bankruptcy for Alitalia ''would not be as bad as all that'', suggesting that state may not always be there to prop up the ailing flag carrier.

Berlusconi played down those comments, saying the existence of Alitalia was a matter of national pride for Italy. At 1025 GMT (1555 IST) share were up 2.68 per cent at 1.071 euros, boosted by his comments following a 3 per cent fall at the open.

The strikes have stranded thousands of passengers at airports around Italy and will certainly punch another hole in the accounts of the loss-making company.

The strikers are concerned for the future of ground operations which, under Cimoli's plan, have been split off from the main flying part of the airline into a company called AZ Services, controlled by state-owned holding company Fintecna.

Ministers are due to meet union leaders on Wednesday. ''We need to see in the coming days we can get an answer which takes account of citizens' rights,'' said Berlusconi.

The state, which has come to Alitalia's rescue many times in the past, has reduced its stake to less than 50 per cent after the recent capital hike.

From: newkerala.com

-----------------------------------------------------------------------------------

Monday, January 23 2006

Union leaders suspend Alitalia strikes

Following wildcat strikes over the weekend which downed flights, Alitalia SpA union leaders said they would "suspend'' a 24-hour strike planned for Jan. 23 after the government offered to discuss complaints about longer shifts, decreasing job security and the sale of a unit.

"We've been called in for a meeting with the government on Wednesday to discuss the Alitalia situation, so we've suspended the 24-hour strike due to start tonight at midnight,'' said Alberto Cassandra, a spokesman for Filt Cgil, the transport branch of Italy's largest union federation, in an interview.

Five unions representing flight attendants, ground crews and pilots of the Rome-based carrier had called for the strike in protest of measures taken by Chief Executive Officer Giancarlo Cimoli to return the company to profit. Cimoli is seeking to cut costs by shedding as many as 3,700 jobs and selling the airline's services unit to state holding company Fintecna SpA.

"The trade unions and management reached an accord in 2004 that was to guarantee the company not being chopped up and sold off,'' Cassandra said. "Cimoli's not sticking to the agreement, and his measures aren't bringing in the desired results if the figures that are leaking out are anything to go by.''

Italian newspaper Il Sole/24 Ore reported yesterday that the airline missed its 2005 passenger sales target by at least 160 million euros, leading to forecasts for an operating loss this year. Cimoli plans to trim expenses by 1 billion euros over the next four years to help return the airline to profit after five years of losses.

From: Bloomberg.com

----------------------------------------------------------------------------------

Sunday, January 22 2006

Wildcat walkouts over restructuring ground flights in Italy

WorkAlitalia cancelled 44 flights today due to continued labour unrest, the second day in a row Italy's struggling national carrier has had to scrap flights because of wildcat walkouts.

Italy's main unions, meanwhile, met at Rome's Leonardo da Vinci airport to discuss whether to proceed with a threatened full-day strike starting Monday - the second in a week. Italian news agencies ANSA and Apcom said the walkout was cancelled pending the outcome of a meeting with the government scheduled for Wednesday.

Alitalia said in a statement that as of Sunday morning it had to cancel 44 out of 130 flights scheduled across its network for Sunday, blaming "illegal union initiatives." On Saturday it scrubbed 66 flights.

Ground crews, including baggage handlers and airplane maintenance workers, had refused to work Saturday and ground crews were continuing to cause the problems, Alitalia said.

Union officials have said the protests stemmed from a breakdown in negotiations with the government. Workers are protesting restructuring plans at the loss-making airline, which have included cutting jobs and spinning off the airline's flight unit from its less profitable ground services business.

On Thursday, Alitalia's employees staged a one-day strike.

The sign in the picture reads "Closed due to strike" in Italian

From: Forbes.com