Contractors begin 2,500 layoffs at Ex Ilva steel plant ahead of court shutdown

Dismissal notices across contractor firms

On 4 September 2026, contractor association Aigi delivered 28 collective redundancy letters to trade unions and institutions, initiating termination procedures for over 2,500 contractor workers at the former Ilva steelworks in Taranto. The association represents procurement and service firms operating at the industrial site, many of which depend on single-client contracts with the facility. Aigi president Nicola Convertino described the layoffs as an unavoidable outcome forced by the mandated October shutdown of the primary hot production area. He noted that the workforce represents human capital built through years of training investments, with many employees holding decades of service. Aigi stated that the lack of strategic planning and the failure to construct new decarbonization facilities prevented firms from guaranteeing continuous employment.

This is an extreme and painful act, to which we would never have wanted to resort. Unfortunately, this measure represents a necessary and inevitable act, the direct consequence of the sudden deadline set for the closure of the hot area as early as October, for which there is no possibility of a restart.

Judicial orders and shutdown schedule

The redundancy process follows a 27 July ruling by the Milan Court of Appeal, which mandated the shutdown of the blast furnaces within 90 days due to asbestos presence and environmental violations. The court set the final operational deadline for 27 October. Plant owner Ilva and operator Acciaierie d'Italia, both under extraordinary administration, appealed to the Court of Cassation and requested an emergency stay from the Milan appellate court. Plant commissioners stated that technical barriers and prohibitive costs prevent restarting the blast furnaces once switched off. Shutdown procedures must physically begin by 16 September if no judicial stay is granted, ahead of an appellate court hearing on 9 September.

Union warnings and government negotiations

The layoff announcement arrived after the Mediterranean Games in Taranto concluded on 3 September. The timing coincided with events in Bari, roughly 100 kilometres away, where Prime Minister Giorgia Meloni marked her administration becoming the longest-serving in Italian republican history. Metalworkers union Fiom CGIL sent an open letter to Meloni warning that closing the plant without industrial or employment alternatives risks creating severe social and environmental fallout in the region. The union urged the government to prevent the unmanaged dissolution of the Taranto industrial site. In response, the executive scheduled talks at Palazzo Chigi on 9 September with trade unions, Confindustria executives, and employer groups.

Economic damages and competing acquisition bids

Extraordinary commissioners estimated that shutting down the hot area would generate at least 2 billion euros in damage from suspended production and lost revenue. In total, approximately 15,000 jobs across direct staff and contractor personnel face elimination if operations cease. Industrial options remain under review as international and domestic bidders evaluate the asset. Jindal Steel International submitted a binding purchase offer to the government seeking to acquire the plant and maintain hot-area operations within court limits. In parallel, an Italian consortium led by Federacciai plans to submit a formal offer for the cold production area following the meetings in Rome.