Italy: rescue plan for the former Alcoa Sardinia steel facility sparks debate over worker participation in companies’ capital structures

To general surprise, on 09 April during a meeting on a rescue plan for the Alco Sardinia steel facility, Carlo Calenda, Italy’s Minister for Economic Development announced that the project intended for a ‘workers association’ that would hold up to 5% of the capital of the ‘Newco’ that is to take over the production site along with Sider Alloys and the state body Invitalia, and that it would also hold a seat on the supervisory board. These arrangements are new to Italy, which previously has not had any worker or management body participation in company capital structures. The proposal has divided union opinion. The Cisl and Uil are broadly in favor while the Cgil has voiced its skepticism.
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Alcoa rescue plan. According to the agreement signed on 15 February, the Sardinian steel facility, that halted production in 2012 and closed in 2014 will initially be handed over to the Italian State body Invitalia (national agency for investment and business development) before it then passes over to the Swiss group, Sider Alloys, which will establish a ‘Newco’. “There will be a capital injection and we have asked Invitalia to participate (Ed. note: probably up to 20%). And in a first for Ital

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