Location of affected unit(s)
Milan and others Italian cities
Retail Trade, Except Of Motor Vehicles And Motorcycles
Retail Sale Of Other Goods In Specialised Stores
47.71 - Retail sale of clothing in specialised stores

175 - 445 jobs
Number of planned job losses
Job loss
Announcement Date
5 June 2006
Employment effect (start)
1 July 2006
Foreseen end date


Upim is a department store chain that has multiple shops in almost all the Italian regions. More specifically, it has 140 wholly-owned shops and 200 stores in franchising. Upim sells ready-to-wear clothes, cosmetics and household goods and has 2,500 employees. It belongs to the Rinascente group, the most important department stores’ owner in Italy.

In April, Upim announced a reorganisation plan that regards the closure of 15 shops throughout the country and the collective dismissal of the 445 workers employed in these shops through the activation of the so-called “mobility procedure”. In particular, the company decided to close the department store located in the centre of Milan - one of the group’s most prestigious and larger department stores - with the consequent loss of 100 jobs.

At national level, the trade unions reacted to the company’s decision by going out on strike on 3 June. In the department store located in the centre of Milan the workers’ representatives stationed in front of the entrances to the store during a week to protest against the company’s decision to close this point of sale.

On 28 July the company and the trade unions reached an agreement on recourse to the “social shock absorbers” to reduce the negative social impact of lay-offs. Of the 445 workers, who are currently employed in the 15 shops that should be closed, 175 will be placed on the “extraordinary” Wage Guarantee Fund (Cassa integrazione guadagni straordinaria). The Wage Guarantee Fund scheme will start from August 2006 and will last for one year. Moreover, these workers will benefit of other types of “social shock absorbers”, such as “mobility” with a view to early retirement and economic incentives for voluntary resignation.

For the other 270 redundant workers, the agreement provides economic incentives for retirement for those who are already eligible and the opportunity to move to other units belonging to the group, specifically in plants that are located in the same provinces of the shops involved in the reorganisation plan.


  • 28 July 2006: Il Diario del lavoro
  • 17 May 2006: Il Giornale
  • 6 June 2006: Telecittà


Eurofound (2006), Upim, Closure in Italy, factsheet number 63638, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/63638.