S.O.S. Watchmakers - Letter to Minister Scajola

We receive in copy and publish herewith the letter sent on 22 July 2008 to the Minister for Economic Development, Hon. Claudio Scajola, by the relevant associations on the issue of the supply of spare parts to watch repairers. The letter is signed by the Presidents of CNA Unione Artistico e Tradizionale (Goldsmiths' Union) and Confartigianato Orafi (Goldsmiths' Section).

Rome, 22.07.2008

Hon. Claudio Scajola

Minister for Economic Development

Via Molise, 2

00187 ROME

Subject: Repair of watches.

Distinguished Minister,

As you know, our associations have been following the problems of Italian watchmakers, among others, for some time and it is as representatives of these companies that we draw your kind attention to a number of issues concerning the sector.

Watchmaking is a particular segment that today suffers the effects of a monopolistic trade policy by a few international groups.

The companies in the sector, which have opted for quality customer service, have invested energy and resources in improving their knowledge and skills, as well as in refining highly sophisticated repair techniques, including, at one time, in cooperation with Swiss watch manufacturers.

Today, the category can boast of high-level technicians who have worked for years in close contact with manufacturers, importers and traders in the sector.

Whereas until a few years ago, the industry had the raw material needed for watch repairs (original spare parts were sold by wholesalers or by the importers themselves), we are now witnessing a policy of 'selective distribution' of spare parts implemented by the most important Swiss manufacturers at the high end of the market.

This restriction has effectively cut repair companies out of the market, as they have had their supplies of spare parts blocked.

As can easily be imagined, the damage caused by this action is also reflected in the end consumer, who is now in the position of no longer being able to freely choose his trusted watchmaker.

On this subject, the Competition and Market Authority itself deemed it appropriate to proceed with an investigation, which unfortunately did not produce any incisive action.

At present, the situation for our handicraft enterprises has been further aggravated by the fact that even companies providing factory-authorised service have not been receiving spare parts for some time now.

The consequences of this attitude on the part of producers can only lead to the closure of companies with the consequent reduction in employment.

This situation worries our Organisations, both because it represents an obstacle to the natural generational change of entrepreneurs (no young person will apply himself in years of study without having a prospect of development in front of him), and because it constitutes an unfortunate setback in the process of professional qualification and retraining of our entrepreneurs, for whom technical updating is fundamental.

Our Associations have already taken steps to collect abundant documentary evidence in several EU Member States, as the manufacturers' behaviour is generalised across the European Union. The same documentation was submitted to the Competition and Market Authority on a confidential basis.

A delegation of us met several times with the Association of Wholesalers and Importers of Watches and Watch Parts in Italy, even going to Switzerland for a direct confrontation with the Manufacturers' Association.

All these meetings had no effect.

On the basis of the documentation collected in various EU Member States, our European Association of Watch Repairers (CEAHR), established within UEAPME, has prepared a report/complaint which has already been submitted to the Commission in Brussels.

In view of this, we are calling for an intervention by your ministry, precisely in light of the increase in the number of business closures that is taking place.

We remain at your disposal to provide copies of the above-mentioned documents, and look forward to a meeting to examine the topic more fully.

We take this opportunity, Distinguished Minister, to convey to you our deepest esteem.

THE PRESIDENT

Artistic Union and

Traditional - CNA

Goldsmiths Coordination

(F. to Nino Tagliamonte)

THE PRESIDENT

Confartigianato Orafi

Goldsmiths Section

(F. to Luciano Bigazzi)

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