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Electric vehicle transition endangers 60,000 Italian jobs, union says

An electric car is seen plugged in at a charging point for electric vehicles in Rome, Italy, April 28, 2021. REUTERS/Guglielmo Mangiapane

MILAN, Nov. 19 (Reuters) – The transition to electric cars could jeopardize 60,000 jobs in Italy, one of the country’s leading metalworkers’ unions said on Friday and called on the government to support a sector “overwhelmed by change “.

Industry analysts believe the automotive sector in Italy could be hit harder than elsewhere due to the small average size of the country’s businesses and the scale of investment needed to comply with the climate plan “Fit-For-55 of the European Union aimed at reducing the net greenhouse effect. 55% gas emissions from 1990 levels by 2030.

Unions and the Italian business lobby Confindustria have said many small and medium-sized countries could be forced to shut down unless the government grants tax breaks and incentives to the sector.

“Despite the complaints and demands of unions and companies, in the finance law, the government has not included any intervention to support a sector disrupted by the changes caused by the energy and green transition”, Ferdinando Uliano, union leader FIM CISL, and Stefano Boschini, head of FIM CISL for the automotive sector, said in a statement.

A group of automotive industry associations also released a statement on Friday complaining about the lack of support in the finance law and Italy’s plan for post-pandemic recovery.

Senior FIM ICFTU officials urged the government to create a fund to protect workers and small and medium-sized enterprises, adding that incentives were needed to encourage the purchase of electric and hybrid cars and the renewal of car fleets of public administrations.

The FIM CISL also asked the Ministry of Industry to define the conditions and advantages to attract investments from multinational groups including Vitesco Technologies, Bosch and Denso (6902.T).

The automotive supply chain in Italy employs 278,000 direct and indirect workers and accounts for 6.2% of gross domestic product, according to the country’s automotive association ANFIA.

The union did not say how it calculated the number of jobs at risk.

Our Standards: Thomson Reuters Trust Principles.

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