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Mahindra to Shut Down Pininfarina Engineering in Italy, Faces Protest by Employees

Representational Image. (Image source: Reuters)

Representational Image. (Image source: Reuters)

The workers say that their salaries are in line with the Italian labour market and are actually less than half when compared with the corresponding professional figures given in other European countries.

Automobile giant Mahindra Corp has decided to liquidate its Italian subsidiary Pininfarina Engineering in order to cover up for the losses faced during the pandemic and this has left the 135 employees of Pininfarina in a fix. The workers have been staging protests at Turin’s main square, urging Mahindra to absorb all of them back, local media reported. Apart from protests, the members of the trade union and employees have penned a letter to the top management of Mahindra, asking them to clarify the reasons behind their decision.

In the letter, the workers have stated that their salaries are in line with the Italian labour market and are actually less than half when compared with the corresponding professional figures given in other European countries like Germany, United Kingdom and France. Citing their skills, the workers have posed why did the firm think of liquidating the new company when it can offer so much.

The Italian body was set up only two years ago and the employees were found wondering what they could have done differently for the management to revert its decision. They also refuse to believe the official statement that says there are no more profit margins. The letter has been concluded by saying that the call to lay off so many employees under these challenging situations does not fit in with the ethical policies perpetuated by Mahindra and its chairman Anand Mahindra.

It is not that no dialogue has been exchanged between the two parties. The management at Pininfarina Engineering has sat down with the trade unions and agreed to absorb 60 of its employees for an internal engineering division. However, the unions refuse to believe in the credibility of the scheme. They are of the opinion that the firm aims to employ only half of the workers and pay them 30 to 40 per cent of the pay, making them work extra.

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According to reports, if the two sides fail to reach a consensus by January 15, 2021, all the 135 employees are going to be cut off.