Analysis of the Effects on Employees, Supply Chains, and the Territory
On March 18, in Turin, at the FIOM Cgil headquarters, the research study “Evaluation of the Social Impact of the Possible Closure of Two Manufacturing Plants in Piedmont” was presented.
This innovative analytical work, strongly supported by CGIL and FIOM, was funded by the Turin Chamber of Commerce as part of Torino Social Impact and carried out by CeVIS – the Competence Center for the Measurement and Evaluation of Social Impact.
The study focuses on the potential consequences of the closure of the LEAR Corporation and TE Connectivity industrial plants, analyzing the negative impacts on employees, supply chains, and the local territory. It demonstrates how social impact assessment could become a useful tool not only for ex post evaluation but also for ex ante decision-making, resource allocation, and strategic territorial development.
The research was conducted using an integrated methodology that combined desk research, employee and former employee surveys, and interviews with key stakeholders.
The study examined the effects of the closure of two industrial plants in Piedmont, assessing the consequences for internal stakeholders—employees and their families—as well as external ones, including supply chains, the labor market, institutions, and the community. Based on the theory of change, the study delved into the dynamics of social impact and possible strategies to address them.
For affected workers and their families, five main areas of impact emerged: economic status and capacity, psychological and physical health, social capital and cohesion, trust, self-awareness, and self-determination. Job loss caused immediate financial difficulties and uncertain future prospects, directly affecting psychological well-being and family stability. Additionally, plant closures negatively impacted social cohesion, weakening support networks and trust in the industrial system and institutions.
Regarding external stakeholders, the interviews highlighted a complex scenario with both challenges and potential opportunities. On the one hand, the closures had significant repercussions on the local supply chain and labor market dynamics, increasing pressure on employment support services and local institutions. On the other hand, intervention opportunities were identified to develop more effective mitigation strategies, such as professional retraining programs, incentives for industrial conversion, and more proactive governance models for managing industrial crises.
The study’s findings highlight the urgency of a paradigm shift in industrial crisis management: rather than responding in an emergency phase, a preventive approach should be developed, based on dialogue between companies, institutions, and communities, to minimize negative impacts and support a more sustainable transition for workers and territories.
“The LEAR and TE crises have once again demonstrated how the effects on workers are the result of interconnected actions and reactions from different actors within a territory,” stated Federico Bellono, General Secretary of CGIL Turin, adding: “This research on social impact is an experimental approach that could become a tool for trade union action.”
Dario Gallina, President of the Turin Chamber of Commerce, explained: “The Chamber of Commerce responded to CGIL’s initiative, through the Social Entrepreneurship Committee, to experiment with impact assessment in the context of ongoing industrial shutdowns in our region. As part of Torino Social Impact, CeVIS developed a unique model in Italy for this study—an assessment method for negative impacts that can be replicated in similar cases. The initiative is also unique for the institutional and collaborative dynamics that made it possible, demonstrating an open dialogue on such delicate processes affecting workers, supply chains, and the local economy.”
“Using an innovative research method, we developed a model to measure the negative impact of an industrial plant closure,” commented Marella Caramazza, responsible for CeVIS’ strategic direction. “The data revealed that plant closures not only cause economic, psychological, and existential damage to those involved but also foster increasing skepticism about the possibility of re-entering the workforce and reigniting a positive cycle of growth and development. The result is a depletion of the system’s resources.”
