Premier Paolo Gentiloni on Friday hailed an accord between unions and US-owned electrical appliances manufacturer Embraco to halt the firing of 497 employees at its plant in northwest Italy.
"This is an important agreement for hundreds of workers. Very good job by industrial development minister Carlo Calenda,"Gentiloni said in a statement.
The leader of the ruling centre-left Democratic Party, Matteo Renzi also welcomed Friday's accord between Whirlpool unit Embraco and unions, which was reached during talks at the industrial development ministry in Rome.
"Great news. Well done Carlo," Renzi tweeted.
Embraco had been due sack the Italian workers this month as part of its plan to close the factory in Riva di Chieri near Turin and switch production to Slovakia.
The suspension of the firings is intended to give the Italian government time to find partners to redevelop the Riva di Chieri site.