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Leonardo reaches deal on furlough for Aerostructures workers -Breaking

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© Reuters. FILE PHOTO: A logo of helicopter maker Leonardo is pictured on their booth during the European Business Aviation Convention & Exhibition (EBACE) in Geneva, Switzerland, May 22, 2017. REUTERS/Denis Balibouse

MILAN (Reuters), – Leonardo, an Italian aerospace company, said Tuesday that it reached an agreement to allow unions to forgo employees from its Aerostructures division in order to offset a drop in commercial aviation parts orders due to the pandemic.

The group requested that more than 3000 workers be placed on a 13-week temporary leave. This triggered protests by unions.

The group has reached agreement with unions to lay off more than 2,000 people at four Italian plants that produce parts for Boeing (NYSE -:) Co. and Airbus. They employ over 4,000 workers in all.

Temporary layoffs will apply to the workers for 13 weeks beginning Jan. 17.

Leonardo intends to invest in new products and services as a way of reorganizing its division that is losing money.

Lucio Valerio Zioffi, Leonardo General Manager Lucio Valentio Cioffi released a statement stating that the company is moving ahead with its plan to transform and relaunch Aerostructures. The investment will amount to more than 300 million euros over 2019-2023.

Leonardo stated in November that it expects its Aerostructures business will absorb at most 350 million euros (397 million dollars) in cash by 2021, before reaching its bottom.

($1 = 0.8821 euro)

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