Strike at Piazza Affari, the first in the history of the Stock Exchange: here’s what lies behind the protest
Today, June 27, 2024, is a historic day for Borsa Italiana employees: at 3.30 pm this afternoon the first strike on Piazza Affari will begin. For the first time, the group’s employees fold their arms and take to the streets. The trade unions Fabi, First Cisl and Fisac Cgil they decided in unison to mobilize for two hours, until the close of trading at 5.30pm. At the moment no reversal is foreseen although the Minister of Business and Made in ItalyAdolfo Urso, convened the unions on July 3rdto delve deeper into the matter. The initiative is part of a broader phase of mobilization.
This long-considered protest is motivated by concern over the move of the decision-making center to Paris by Euronext, the federation of European stock exchanges that manages various financial centres, including the one in Milan. Employees (approx 800 in the Italian economic capital) fear that this could undermine the historical importance of Piazza Affari.
What is being contested?
“Given the systemic importance of all the companies of the Borsa Italiana group, we denounce – this is the motivation put on the table about ten days ago by the unions – the constant, systematic and overall disinvestment from Italy of the Euronext Group, and the emptying of Italian structures from within”. But really, at the base there are four fundamental issues to resolve.
First of all, the unions’ concern for the “deep” concern employment retention in the area national. “While projects for the relocation and near shoring of entire areas of activity outside national borders are being outlined, the company continues to refuse to provide guarantees and to undertake shared paths to protect jobs and enhance existing professionalism”, the unions specified.
The second theme is related to salary question: “in the face of recent inflationary dynamics, the party’s choice not to pay the wage increases envisaged by the renewed Ccnl represents the latest in a series of episodes that highlight the group’s desire not to protect the purchasing power of Italian workers. “
The third point “of profound discomfort and concern” is linked to thework organization. “As a result of organizational structures that have become increasingly fragile over time, the recourse to overtime, Saturday, holiday and even night work, combined with unsustainable management of availability, has become systematic and now structural in the Borsa Italiana Group, putting the workers’ mental and physical health at risk”, the unions denounce.
The last element of claim is linked to theme of governance and the “progressive loss of managerial and strategic autonomy of the Italian companies of the Borsa Italiana group“. “Given the national relevance of the market infrastructure, we note a progressive transfer outside of Italy of the strategic direction of the Group, and a shift of top roles to other geographical areas of the Euronext group”, underline the unions according to which “all four points mentioned above we believe confirm the Euronext group’s desire to progressively disinvest from Italya choice which causes deep concern for the maintenance of the overall competitiveness of the country system, as well as for the obvious and potential repercussions on employment and impoverishment of the professionalism present on the Italian territory”.
The role of Euronext
Euronext acquired Borsa Italiana for 4.4 billion euros from the London Stock Exchange in April 2021. As a federation of European stock exchanges, it operates Milan together with Paris, Amsterdam, Brussels, Lisbon, Dublin and Oslo.
Cassa Depositi e Prestiti and Intesa Sanpaolo they entered the Euronext shareholding structure with a total investment of 579 million euros, Cdp with 7.3% and Intesa Sanpaolo with 1.2%. Other shareholders include BNP Paribas, ABN AMRO, Société Générale, Cassa Depositi e Prestiti France, Euroclear, GIC Singapore and BlackRock. To finance the acquisition, Euronext had planned a capital increase of 1.8 billion euros and the issuance of new long-term debt.
“Borsa Italiana has become part of a European group with 7 entities and has not taken Italy away. The numbers have grown both in terms of employment and wealth”. Says Claudia Parzani, president of the Italian Stock Exchange. According to the president, “not only are more people working for the stock exchange but investments have been made that have brought capital to Italy and led new companies to list in our country. The theme has been exploited.”
What to expect from the strike
At the moment the extent of the strike is not yet clear, much less the rate of participation. On the other hand, Euronext does not foresee significant disruptions in market operations, considering that the systems are automated and integrated on a unified trading platform, called Optic.
However, complications may arise in the event of server crashes or other technical problems. In addition to the suspension of work activities, the protest also involves the blocking of availability and overtime in the following days until 14 July.
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