Stellantis NV (NYSE:STLA), the parent company of Dodge, Chrysler, Alfa Romeo and others, has experienced a slow in production at its plant in southern Italy the past few days due to strikes by employees protesting over working conditions, the FIOM union said on Friday.
The automaker assembles the recently launched Alfa Romeo Tonale SUV, production of which is ramping up, and the Fiat Panda small car at the facility in Pomigliano, near Naples. The plant employs over 4,000 people, with over 20% of them still away on state-funded furloughs.
Mario Di Costanzo, the head of FIOM's branch in Pomigliano, reports that production halted almost entirely on Wednesday and suffered further stoppages for several hours on Thursday and on Friday.
A spokesman for Stellantis in Italy told reports that the strikes never halted production lines in Pomigliano completely, but that output was slowed down.
Di Costanzo mentioned that the company is presently scaling up vehicle production in order to meet the rising market demand, all while refraining from expanding the workforce on the assembly lines. Instead, the focus is on urging the workers to enhance their productivity during their shifts.
"The company is seeking effective cost reductions," Di Costanzo said. "This means backbreaking shifts and fewer investments on the lines and on workplace conditions, including safety."
The Stellantis spokesman rejected any accusation of a lack of attention to the working conditions of its employees.
"Stellantis always acts within the framework of the specific labor contract and with respect for its employees, also considering the competitive environment in the automotive industry," he said.
Stellantis agreed to a pay deal with Italian unions in March that will raise wages by 11% over the first two years but FIOM was not part of that settlement.
Shares of STLA are down 0.92% in afternoon trading on Friday.