Responsibility for sacked Micron workers falls on ST

Micron PeopleThe Italian government is calling in STMicroelectronics to take responsibility for the 419 researchers which Micron Technology of Idaho is trying to sack in Italy.  Micron wants to sack  40% of its Italian workforce. as part of a 5% global workforce reduction.

A meeting will be held in Rome on April 1st at the Italian Ministry of Labour at which ST may be forced to accept responsibility for the situation which started back in 2007 when ST decided to exit the flash memory business by putting its memory operation into the Numonyx joint venture with Intel.

Last Wednesday Pietro Pallela, managing director of STMicroelectronics Italy, was called into the Italian Ministry of Economic Development (MISE) to meet Vice-Minister Claudio de Vincenti  who asked Pallela for ST’s plans for the 419 researchers which Micron intends to sack.

The researchers had originally worked for ST’s flash memory business but had been forced into  Numonyx  which was later sold to Micron. Micron is now trying to sack 40% of the former ST memory unit.

Last Wednesday, at the meeting with de Vincenti, Pallela told the Vice-Minister  that ST had no moral obligation or responsibility for the employees and wouldn’t be able to re-hire any of the sacked researchers until 2016.

The Italian government still has a stake in ST and a ‘golden share’ which is thought to allow it to enforce its will on the ST management.

Leaders of the Italian unions have written to the new Italian Prime Minister Matteo Renzi asking him to intervene in the dispute and lean on ST to find a solution to the problem.

Meanwhile the Micron workers have plastered Catania with posters high-lighting their plight.

At a meeting at MISE last Thursday, Micron reduced the number it would sack by 20-30 people but made no significant concessions.

Micron posterThe Mayor of Catania and Sicilian regional officials also held a meeting last week to discuss the issue.

Meanwhile the Micron workers have plastered Catania with posters high-lighting their plight.

 

The slogans read:

‘On Sale! Engineers, mathematician, information technologists’

Micron  Redundancy Personnel from April 7th

Professionalism is not for Sale!

Tags: Italian government, Italian Ministry of Economic Development, Italian Ministry of Labour, Micron Technology of Idaho

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3 Comments

  1. toto
    April 02, 2014 14:13

    One day, we will discover that Europe is nothing more than a museum. At the information age, I am ashamed that such bright minds be laid off in that way.

    Toto

  2. One of the many layed offf.
    March 29, 2014 10:59

    Mr. Palella strategy seems a CYA one and “scratches” with his role, which should care social responsibility as a primary value.
    I understand STM “desperate” attempt to avoid be charged of any social problem belonging to other companies, but I think a higher rate of comprehension and diplomacy would have been appreciated, ‘cause STM moral responsibility is controversial, despite what claimed.
    Here’s some point of discussion
    • STM former Memory Product Group has been globally non-profitable for several years before the spin-off towards Numonyx, with the notable exception of its 2nd major division, the Embedded Products one, profitable while playing in a market dominated by Spansion’s dumping strategy. MPG as a whole was a recognized as an excellency Team, from the professional culture, innovation, products quality point of view.
    • Nevertheless, MPG spin-off has been th only “blind” one operated by STM, while any other set-up joint venture, consortium or similar operation was protected by a return to the “mother company” condition. This appears as discriminating versus MPG workers.
    • MPG people inserted themseves happily in the new environment of Numonyx Company, growing in a small but promising company, able to finally be profitable.
    • Despite of it STM set itself “free of engagement” towards the former MPG once Numonyx was sold to Micron and STM sold the acquired stock share. This hurried sold-out looks also short-sighted, as we know MU share price growth impressively after 2011
    Mr. Palella was probably “innocent” at the time the described choices were done, but his corporate position today calls for his share of responsibility.

  3. micron ex-
    March 27, 2014 16:50

    mr manners, fantastic article and appreciated by all …just one very important item which needs to be mentioned ..the initiative of the mega-poster is to be credited to the arzano-naples micron ( ex-st ) folks …catania will follow suit along with agrate-vimercate ( milan ) site…thank again

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