On the tables of the next government there will be not only the hot energy dossier but also the neglected one of one of the first Italian manufacturing industries, which was indeed the first in the world not even many years ago, namely that of domestic and professional appliances and related districts. With a series of bad updates.
Let's start with the incumbent Whirlpool litigation: first the non-participation at the crisis table called for 28 September at the Mise by the Minister for Economic Development Giancarlo Giorgetti and the Minister of Labor Andrea Orlando, harshly stigmatized by the ministers. Then, simultaneously, the harsh reactions of the national secretariats of Fim, Fiom and Uilm who declared a state of national unrest. And just in these days, the number of strikes, with very high adhesions and numerous new mobilizations also intended to solicit the solidarity of local and central administrations.
Union initiatives in support of the Whirlpool dispute
A Cassinetta (Va) since 8 October, the RSU of Varese have also launched initiatives that will culminate in a procession on 10 October to solicit the solidarity of the mayors of Biandronno and Ternate (where Cassinetta is located) and of the entire Lombard province. Where, among other things, the League is very strong, but absent as it has always been there Lombardy region with Northern League traction. In fact, the administration of the city of Varese has been following the story for some time together with other centre-left administrations, and with smaller participations by other administrations.
Here the first European district of the sector. “These institutions – the company union representatives tell FIRSTonline – will finally have to acknowledge that here in this province there are thousands of families of the multinational's employees and several hundred families of SME employees who make up the first European district of the supply chain of suppliers in the household appliances and automotive sector, with companies in the plastics, mechanics, chemistry and electronics sectors”. This is, for the first time, a national mobilization which concerns – as the trade unions have underlined – the very future of the entire national manufacturing sector which between related industries (many and in common with the car industry) and domestic appliances and professional, is worth well over the “official” 14 billion euros.
Bad news from the US too
What worries workers and unions are the very recent news, on worldwide sales of the household appliances sector in the first months of the year and the forecasts for closure, including those already expressed by Whirlpool in April and then recently confirmed unofficially. All negative. The latest October surveys of GFK, indicate that in the first half of the year sales fell worldwide by 5,5% on the same period of 2021 but with a double decline compared to that of the first quarter of the current year.
In Europe fell by 7%. China even 9%. Over United States deliveries to stores decreased both in the first quarter and also in the following months and corporations fear closing the year with less than positive results. So it started there race to cut (to save dividends). “We are zeroing costs – the Chief Financial Officer recently told the Wall Street Journal Jim Peters of Whirlpool – significantly stopping or slowing down our hiring. The company plans to review its portfolio."
Indeed, the Corporation trimmed its profit outlook for the year with a forecast forUseful for the full year of $9,50 to $11,50 per share, down from $24 to $26 per share expected in April. The turnover it is forecast at approximately 20,7 billion, down 6% on previous estimates. As for Electrolux, a rival to US Whirlpool, lowered its full-year market prospects for North America, not just Europe.
Applia-Confindustria, the great absentee
Many, too many absences are weighing on these and other disputes such as that of the association that brings together, within Confindustria, companies in the domestic and professional technology sector, namely Apply Italy. Usually invited and present, in the past, when disputes of strategic importance such as the current one were involved. “Perhaps a summons from Applia Italia would have been useful – commented Antonio Guerrini, general manager of the association for a long time -. The Ministers would have obtained a double purpose: to have the availability of the association and also of Whirlpool, given that the two top positions are held by the same person, Paul Lioy he is also CEO of Whirlpool Italy and Spain but also vice president of Whirlpool Corporation. I understand Minister Giorgetti's difficulties, with a government closing down we are in fact in a vacuum of powers. Whirlpool is not ordinary administration and at MISE everyone is aware of it.”
Lombardy Region, another heavy absence
Equally heavy another absence, that, as already anticipated at the beginning, of the Northern League top management Lombardia (and the president Attilio Fontana is from Varese) instead of a constant interest and intervention with the government, of the President of the Marches, Francesco Acquaroli of Brothers of Italy. “An intervention by the Lombardy Region which has all the legislative, financial and moral suasion tools on the companies that employ thousands of people in its territory is due – says Guerrini -. Don't forget who manages the first region of Italy by mandate of the electors that the renewal elections are near and people remember a lack of attention and necessary interventions like this ".
Watch the times: they are decisive
The mobilizations will continue - ensure the national secretariats Fim, Fiom and Uilm - in the forms that will decide the national trade union coordination, until Whirlpool has not accepted a real and transparent confrontation. But when? The first deadline is the 21 October when the third quarter results are released, and Marc Bitzer, president and CEO of the Corporation may take time. Because, as FIRSTonline revealed, since last April, as soon as the sharply declining sales results arrived, Whirlpool had given mandate to sell all of its assets manufacturing, research and commercial activities in the Emea area (Europe, Middle East and Africa) to the executive vice president and president of the company Whirlpool Emea, Gilles Morel with an agreement signed on August 17, 2022. The agreement, which provides for a bonus of 3 million euros for Morel in the event of closure of the transaction, must be concluded no later than June 30, 2024.
The heavy negative opinion of SWOT analysts decreases
In the meantime, the heavy declines in turnover due to the numerous divestments in Asia, Africa and Europe will have significant effects on prices and it is not certain that closing or selling sites automatically means improving margins, competitiveness and innovation. And yet that is precisely what a recent analysis SWOT (SWOT are used to evaluate the strengths, weaknesses, opportunities and threats of a company), indicates as priorities for Whirlpool to resist on the global stage. And the heavy negative opinion of SWOT analysts falls on Bitzer's declared intention to concentrate above all on North America and India.
