Unions Put the Kibosh on Moto Morini Acquisition

Google+ Pinterest LinkedIn Tumblr

You have to love labor unions sometimes. Faced with the prospect of being completely out of work, the labor union negotiators have rejected a proposal from Paolo Berlusconi that would save Moto Morini from going completely out of business. Of course us Americans can relate to this plight, as we just recently watched the UAW try to pull the same tactic while the US automotive industry crumbled around them. The blocked agreement is obviously bad news for Moto Morini, but Berlesconi is likely not done pursuing the troubled Italian manufacturer.

For his part Paolo Berlusconi is expected to make another offer on the company, which will hopefully be more appealing to the labor unions. It’s unclear how soon that offer could be made, as it would seem Belusconi can wait indefinitely on the purchase of Moto Morini, while the trade union has workers without jobs to answer to during this waiting period.

Belusconi’s original offer was rumored to be for around €2.8-2.9 million, and included provisions for worker severance pay, new hires, and the new company leasing the current factory for the next six years, which would keep jobs in the Bologna area.