Fiat threatens to pull out of Italy’s main industry federation over labor rules

Article by Christian A., on June 30, 2011

Unless there is more progress in the discussions with unions over labor rules, Fiat S.p.A. will pull out of the main industry federation in Italy, the company’s Chief Executive Officer Sergio Marchionne disclosed on Thursday.

Marchionne also runs U.S. carmaker Chrysler. The threat by Italy's biggest industrial group is the latest update in a struggle between the unions and Marchionne on the new labor contracts that the CEO has introduced at the company’s three plants in the country that will boost productivity and reduce absenteeism.

Employers' federation Confindustria agreed on a deal with Italy’s three main unions groups this week to create contracts signed at the company level binding if they win the backing of a majority of labor groups or workers.

However, the agreement is not retroactive. Also, it says that those contracts cannot drastically distance themselves from collective labor rules discussed between the unions and the federation, which is a setback for Fiat.

The company is also facing legal action from a radical union which rejected the new rules at its plants. Marchionne also disclosed that unless more progress was made to meet Fiat demands on flexible contracts, it would leave the employers' group from Jan. 1, 2012. He added that the company wants only people who can work in an environment “where everybody accepts their duties and responsibilities.”

Marchionne has created plans for a 20 billion euros investment in Fiat's loss-making Italian plants conditional on the labor unions giving full backing to the new contracts at the ex-Bertone, Mirafiori and Pomigliano factories. Moreover, he threatened to move production overseas unless the plants accept tougher labor rules on strikes, working hours and sick pay.

Topics: fiat, italy

If you liked the article, share on:

Comments

Recommended

Audi’s intention to bring out the Renn Sport Racing version of the Q5 was made clear when it unveiled the Audi SQ5 at the 2017 Detroit Motor Show early this...
by - July 22, 2017
Kia’s Sorento midsize sports utility vehicle is reaching its mid-cycle for the 2018 model year. Thus, its fans, enthusiasts and satisfied customers are expecting the Sorento to receive an update...
by - July 22, 2017
The Lotus Evora Sport 410 astonished the world after arriving as the more powerful and lighter edition of the already impressive Evora 400. Now, Lotus Cars is throwing in another...
by - July 22, 2017
The Europe-bound WRC hatch developed by Toyota and Gazoo Racing team will be limited to just 400 examples as reported by AutoCar this week. Otherwise known as Gazoo Racing Masters...
by - July 21, 2017
Even cops get excited when they’re assigned to drive the best cars in the market. In Austria, police officers drive around in a Porsche 911 Carrera while in Milan, authorities...
by - July 21, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries