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The Multinational Committed in 2018 to Modernize Its Production System and Adapt to Environmental Standards, But Now Changed Its Mind and Puts 10,7 Thousand Jobs at Risk.
About 10 thousand jobs are at risk due to a rivalry between the Italian government and the multinational ArcelorMittal. The dispute between them could lead to the end of activities at the largest steel complex in Europe, which has a long history of environmental pollution. In Brazil, things are starting to improve, and the largest brewery in Latin America will invest R$ 600 million in a wind farm in the Northeast
Ilva was founded in 1905 and has been under government intervention since 2015, but an agreement signed in 2018 stipulated that the steelmaker would be purchased by ArcelorMittal.
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The multinational took over the management of the Italian Ilva in November last year, committing to modernize its production system and adapt to environmental standards, but now changed its mind.
ArcelorMittal’s decision to withdraw from Ilva exposes 10.7 thousand jobs, with 8.2 thousand just at the Taranto unit, the largest steel complex in Europe located in the south of the country, which is currently suffering from high unemployment rates.
The Prime Minister of Italy, Giuseppe Conte, is unhappy with the multinational’s decision and said he will do “everything to defend productive investments and the families working there.”
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“There are contractual commitments to be respected, and we will be inflexible. In Italy, the rules are respected,” said the minister.
Using the Parliament’s decision to revoke the “criminal shield,” as a withdrawal, which allowed Ilva to continue polluting above permitted levels until the company complied with current regulations.
The measure was approved with votes from all government parties and generated fear among steel executives of future charges for environmental crimes.
The leader of the center-left Democratic Party (PD) in the Chamber, Graziano Delrio, states that “Workers come first. We have already prepared an amendment to return to the previous situation and remove any pretext.”
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The government assumes that the multinational is using the “criminal shield” as a pretext to dispose of a business that no longer seems so profitable.
“We have reasons to believe that the real reason is a well-known widespread crisis in the sector, which led ArcelorMittal to evaluate that it made a mistake by signing the contract,” said the governor of Puglia, Michele Emiliano, ex-PD.
On Wednesday, November 6, the multinational’s leaders met with government members in Rome to discuss a solution.
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