Giorgio Armani SpA is reorganizing part of its company, Giorgio Armani Operations, in Italy’s area between Reggio Emilia and Modena, almost two hours away from Milan — a move that is causing some friction, negotiations with local unions and possibly government-funded wage subsidy, according to Il Sole 24 Ore.

The daily said Friday that Armani plans to close its manufacturing plant in San Martino in Rio, moving 134 employees, with the exception of around 20 units, to a site in Baggiovara, about 12 miles away. In this town, Armani is whittling down its commercial division, cutting employees from 50 to 30, as several have been relocated to Milan, where, the paper says, all commercial activities are being concentrated.

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The plan is allegedly to shut down the commercial division in Baggiovara, which works on the Giorgio Armani Jeans and Giorgio Armani Junior brands, by the first half of next year. These issues are not affecting the industrial division in Baggiovara, which counts around 300 employees, and which is expected to incorporate the San Martino workers. In light of the positive performance of the group, unions are asking for a solution for both sites. The Armani company declined to comment.

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