Benetton to undergo restructuring, attempts to protect jobs

Italian fashion retailer Benetton is believed to be undergoing a restructuring, with reports stating that the group is in contact with local trade unions in a bid to preserve jobs.

According to WWD, Benetton Group, under the supervision of its new CEO Claudio Sforza, is looking into the implementation of wage support for its workforce, working alongside trade unions to ensure the best deal.

The company is said to be pursuing a measure that loosely translates to “solidarity contract” in Italian law, which would allow it to restructure while establishing an agreement with trade unions to reduce working hours and related salaries in a bid to avoid job cuts.

Trade unions have reportedly met with Sforza twice since his appointment in mid-June, however, they are likely to disapprove of Benetton’s current proposed measures to reduce working hours by 40 percent for 1,000 office employees at its headquarters.

As such, the related unions are understood to be pressuring Benetton to rethink the terms, and take cuts down to 20 percent with the potential to reintegrate an additional 10 percent.