Fiat and unions have suspended talks over a plan to relaunch firm’s main plant

Article by Christian Andrei, on December 6, 2010

So far, no agreement has been reached between Fiat S.p.A. and unions with regards to a plan to relaunch Mirafiori, the group's main carmaking plant in Italy as a joint venture with Chrysler Group. Talks between the parties were suspended because “the conditions are not there” for a deal to take place, according to a Fiat spokesman.

To get more labor flexibility at the plant, Fiat and Chrysler have said that they will invest over 1 billion euros ($1.32 billion) in the Mirafiori factory in Turin to build top-range Alfa Romeo and Jeep SUVs to be sold in Europe and North America.

The union members were split on whether to sign the deal or ask for more time. Not hiding its opposition is the left-leaning Fiom union. Bruno Vitali, who attended talks for the Fim Cisl union, said that a “stalemate” has been reached.

He pointed to the national contract as the key issue. Fiat doesn’t want to execute this national contract and would rather use an ad hoc contract.

Italian Welfare Minister Maurizio Sacconi has asked Fiat and unions to resume talks. In a statement, Sacconi said that he hopes that all parties will be responsible “so that intelligence and experience can help the common good prevail.” [via autonews - sub. required]

Topics: fiat, factory, italy

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