VZCZCXRO4370
PP RUEHFL RUEHNP
DE RUEHRO #1286 3241648
ZNR UUUUU ZZH
P 201648Z NOV 09
FM AMEMBASSY ROME
TO RUEHC/SECSTATE WASHDC PRIORITY 2919
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
INFO RUEHMIL/AMCONSUL MILAN PRIORITY 0337
RUEHNP/AMCONSUL NAPLES PRIORITY 4118
RUEHFL/AMCONSUL FLORENCE PRIORITY 3901
RUEHBS/USEU BRUSSELS PRIORITY 4880

UNCLAS ROME 001286 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON ELAB IT EU
SUBJECT: ITALY - WORKERS OCCUPY ALCOA FACILITY 
 
¶1.  Workers at the Sardinia plant of the US multinational 
ALCOA have occupied the plant, detaining the Italian 
management.  The company announced plans to close the plant 
and another in the Veneto region temporarily after the 
European Commission on November 19 confirmed an earlier 
ruling that the company must reimburse the Italian government 
270 million euros it received since 2006 in illegal 
electricity subsidies.  Approximately 1000 workers at both 
plants stand to lose their jobs.  ALCOA had enjoyed 
preferential electricity rates until 2005 under a contract 
with Italy's para-statal electric monopoly ENEL that the EC 
had sanctioned, deeming it a free market transaction.  After 
that contract expired, the GOI sought to keep the plants 
operating by agreeing to subsidize higher electric rates 
directly. 
 
¶2. This summer post assisted ALCOA management in setting up a 
meeting with GOI officials.  ALCOA had told us that the 
EU-ordered reimbursement would force them to shut down the 
plants. We have not been contacted by the company regarding 
this plant seizure. 
THORNE