Miracolo Marzotto

Towering above the quaint tile roofs of Valdagno. a village in Northern Italy, are two imposing structures--a huge textile mill, now being enlarged into Europe's biggest spinning and weaving plant, and an eight-story grey marble mansion. Both belong to the Marzotto family. So do the village's hospitals, orphanages, parks, cafes, hotels, shops and just about everything else, including the railroad station and the 20-mile electric railway that links Valdagno with the outside world.

As feudal as such a family fief may seem, the Marzottos' benevolent paternalism is based on the modern conviction that prosperous workers are more productive. The Marzottos are rarely struck, enjoy intense worker loyalty, have forced much of Italian industry to pay higher wages by frequently raising the wages and benefits of their own workers. Valdagno's 32,000 inhabitants are so satisfied with the way things are that the village has the lowest percentage of Communist voters of any Italian industrial community --8%, v. 40% in Turin and 50% in a village only seven miles away.

Marauding Bedbugs. Valdagno is only one part of what Italians respectfully call "Il Miracolo Marzotto." The Marzottos own textile plants in six other Italian towns, are Europe's largest producer of woolens. They own huge farms, 60 low-priced Jolly Hotels scattered throughout Sicily and Italy, and ten clothing shops that handle their Fuso d'Oro (golden spindle) readymade clothing, which they pioneered in tailor-ridden Italy. Revenues last year from the Marzotto enterprises exceeded $100 million.

Descended from a long line of weavers who set up looms in Valdagno nearly 200 years ago, the clan is headed by hardheaded, domineering Count Gaetano Marzotto, 68, who added hotels to his business after being bitten by marauding bedbugs during a stop in a hotel in Southern Italy. Made a noble in 1930 by King Victor Emmanuel chiefly for his exemplary treatment of his workers, Count Gaetano has five sons to carry on his title and the family business: Vittorio Emanuele, 40, a Liberal Deputy; Umberto, 36, who runs the farms; Paolo, 32, a sales executive with the retail outlets; Pietro, 25. a law student, and Giannino, 34, who has been handed the prize assignment--running the textile company. As a youth, handsome, soft-spoken Giannino became an Italian national hero by twice (in 1950 and 1953) winning the Mille Miglia road race. Says Giannino: "Racing was a good preparation for the future."

In the Moon Race. Giannino steers the textile company as deftly as he did his Ferraris. Though he has raised wages 250% since taking over in 1958, he has automated so rapidly that increased productivity has offset higher labor costs. As a result of more efficient methods, Giannino this year will eliminate 1,000 of the 8,000 jobs in the Valdagno mill. To keep from firing anyone, he will shift the displaced workers to new Marzotto plants near by, where blankets and high-fashion clothes will be turned out.

Like his father, Giannino feels responsible for providing more than just jobs. "My father gave our people material assistance," he says. "I want to give them intellectual assistance." He has organized an Incontro Club that sends Valdagno's citizens on trips abroad at prices they can afford. Last year 84 workers toured Russia ; this year tours are planned to Sweden, the Balkans and the U.S. The Valdagno travelers, armed with tape recorders, meet local workers, visit their plants and homes. Cost to the average worker for a 14-day trip to the U.S. : $150. The Marzottos make up the difference. By helping his workers learn more about the world, Giannino hopes to win the race against political ignorance and apathy. "Our aim," he says, "is to send every person in Valdagno abroad before America or Russia puts a man on the moon."

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