PADUA and ORMOZ—Safilo Group S.p.A. (Reuters SFLG.MI) announced that an agreement has been reached with the trade unions and the work council regarding the closure of the company's Ormož Slovenia production site starting June 2021. The company had previously announced its intention to close the Slovenian production site in mid-March. VMAIL  reported on it at that time. It was a decision made in the context of the plan to realign the Group’s overall industrial capacity to current and future production needs.

This intervention follows the actions taken in Italy in 2020, which involved the closure of the Martignacco production site and the reorganization of the Longarone site, which is still ongoing.

The Ormoz agreement provides the following social measures:

• Higher severances.
• Higher holiday bonus (Regres za letni dopust).
• Additional pay out for employees under agreed social criteria.
• Jubilee awards for employees who would otherwise not receive them, but would be entitled to them if still employed on 12-31-3031.
• Safilo’s waiver of its claims under the decision of the Higher Labour and Social Court toward disabled employees.

“This agreement is part of our broader strategy aimed at ensuring a solid and sustainable future for the Group,” commented Angelo Trocchia, CEO of Safilo Group. “I would like to thank the trade unions who have worked with us in a constructive way to reach an agreement aimed at minimizing the social impact of this difficult decision and the Slovenian Institutions with which we have established a transparent and fruitful dialogue.”