Gaggio Tech: the CIGS scheme has ended; it’s time for redundancies

For Gaggio Tech, the former Saga Coffee, a long-established coffee machine manufacturer based in Gaggio Montano in the Bolognese Apennines, is entering the final phase of its reorganisation following the industrial restructuring that transformed it into a plastics and metals manufacturer, with further redundancies and the closure of its plastics division. The bringing forward of the expiry date for the extraordinary redundancy scheme, from 30 September to 31 August, means that the social safety net will come to an end on Monday, as agreed in a deal with the Ministry of Labour following lengthy negotiations that also involved local authorities and institutions. Redundancies will begin, affecting 79 workers who will then be eligible for Naspi unemployment benefit. Forty of them will remain in the metalworking division and will be re-employed by Minifaber.

At Gaggio Tech, very little remains of the company from which the whole story began: Saeco. It was founded in the early 1980s in Gaggio Montano, in the Bolognese Apennines – a location that was anything but easy to reach. The 1990s were a period of significant growth, first with the acquisition of Gaggia, then the merger with Philips. Following a period of continuous expansion – including in terms of employment, to the extent that by the start of the new millennium the coffee machine manufacturer had grown to employ almost 2,000 people – the company began its decline. The group was broken up, giving rise to Saga Coffee, but the relaunch was short-lived. By the end of 2021, Saga Coffee – which employed 220 staff, predominantly women – was going through a very difficult period and announced its closure. A sit-in outside the factory gates followed, attracting significant media attention. It lasted three months, day and night, in the cold of the Apennines, and became a veritable parade of politicians and trade union representatives. In 2022, two potential buyers came forward: Minifaber and Tecnostamp. This led to the creation of Gaggio Tech and a new production line centred on plastics and metal. In March 2025, a new crisis was announced due to a lack of orders, leading to the closure of the plastics division and the start of a dispute that was resolved with an agreement last July. From the start of September, around 40 workers will remain in employment, having been re-employed by Minifaber, whilst the others will begin receiving Naspi benefits.