Italy's Marelli agrees with unions 400 voluntary layoffs

March 21, 20233:21 PM UTCUpdated ago

The company logo of Marelli is displayed at the factory in Ora Town, Gunma Prefecture, Japan July 30, 2020. REUTERS/Naomi Tajitsu

MILAN, March 21 (Reuters) - Italian auto parts maker Marelli has agreed with unions 400 voluntary redundancies in Italy, amid rising costs of raw materials and falling sales due to supply chain problems.

"On redundancies a framework agreement was reached that rules out forced layoffs," Italian unions said in a joint statement after striking a deal with the company.

Marelli confirmed the agreement in a separate statement, adding the company will invest 73 million euros ($78.67 million) this year to strengthen production in its 15 Italian sites.

Unions said workers would be let go only with their "non-opposition", and added that Marelli's total workforce in Italy amounted to 7,187 at the end of 2022.

Marelli, owned by private equity KKR (KKR.N), was created in 2019 after Fiat Chrysler Automobiles sold its car parts unit Magneti Marelli.

($1 = 0.9279 euros)

Reporting by Giulio Piovaccari, writing by Cristina Carlevaro, editing by Alvise Armellini