Italy delays ex-Ilva steel decree after Supreme Court sets hearing on Taranto hot-end closure for 20 October

Court intervention halts cabinet decree

The Italian government halted the presentation of an emergency labor decree during a cabinet meeting on 16 September 2026 following a scheduling announcement from the Court of Cassation. Undersecretary to the Presidency of the Council Alfredo Mantovano informed trade union representatives at Palazzo Chigi that the measure will be reviewed once legal clarity is established. The Supreme Court convened an urgent public hearing before its United Sections for 20 October 2026 to review appeals against the shutdown of the primary hot-end facility at the Taranto steelworks. The meeting marked the fourth formal session between the executive and labor organizations in 2026, bringing the total number of negotiation rounds to 20 since the start of the current legislature.

Mantovano outlined the executive's stance on maintaining industrial operations at the Taranto complex.

“The government's intention is to allow the continuation of steel production in Taranto, pursuing the tender for the sale based on the offers submitted or those that will arrive. This while keeping in mind a future of steel that must necessarily be green.”

Legal timeline and appeal grounds

The legal dispute stems from a 27 July 2026 ruling by the Milan Court of Appeal, which ordered the complete shutdown of the Taranto hot-end area within 90 days due to environmental pollution and public health impacts. In response to a petition initially launched by local Taranto residents, special administrators for Ilva, Acciaierie d'Italia, and Adi Holding submitted appeals comprising 25 separate grounds of challenge. The special administrators plan to request an immediate stay of execution from the Milan court to keep the blast furnaces running in heating mode until the Supreme Court rules. The judicial timetable sets filing deadlines for the public prosecutor on 5 October, defendant parties on 14 October, and appellants on 17 October.

Subcontractors suspend 2,500 layoffs

The court's decision to intervene before the scheduled 26 October shutdown date prompted subcontractor businesses to freeze planned workforce reductions. Employer associations representing supply chain companies agreed to suspend 2,500 pending dismissals until the Court of Cassation delivers its verdict. Trade union delegates from Fim, Fiom, Uilm, Usb, and Federmanager had pressed the executive to halt job cuts during the talks. Aepi Confederation president Mino Dinoi described the collective decision to freeze termination procedures as an additional act of responsibility given the difficult operating climate.

Ahead of the Palazzo Chigi meeting, Fiom General Secretary Michele De Palma advocated for structural state intervention in the plant's operational model.

“Workers are mobilized for the freeze on layoffs. We believe that in our current situation, the proposal we put forward to the government was the only viable option. Namely, that of a public company that provides continuity to decarbonization and guarantees production and employment.”

Government transition strategy and commissioner appointment

The government's long-term framework focuses on converting the Taranto facility to direct reduced iron electric arc furnaces, a transition projected to require four years. Undersecretary Mantovano stated that dedicated funds are already available for electric furnace investments and will be supplemented if required. The executive also established the post of extraordinary commissioner for investments and reindustrialization, assigning the role to Dario Iaia, the sole manager of the Institutional Development Contract. For affected workers, the plan includes customized wage support mechanisms outside standard business cessation programs, alongside early retirement provisions for arduous labor. Negotiations between ministers and labor unions are scheduled to resume during the following week.