Chrysler 2002 Annual Report Download - page 18

16 Report on Operations
At December 31, 2002, the Group had 186,492 employees,
compared with 198,764 at the end of 2001.
The Group hired 17,600 new employees in 2002 — 4,700 in Italy
and 12,900 in other countries.
A total of 25,572 employees (10,300 in Italy and 15,272 in other
countries) left the Company.
Business acquisitions and divestitures resulted in a net decrease
of 3,900 employees. An additional 400 employees left as a result
of outsourcing arrangements.
The geographical distribution of the Group’s staff shows that
the number of employees working outside Italy has increased
slightly to 53% of the total workforce, broken down as follows:
28% in Europe and 25% in the rest of the world.
Organizational Changes.Fiat Auto completed the
development of an organizational model based on Business
Units, defining the applicable operating procedures. CNH has
adopted a new organization for Manufacturing and Sales of its
Agriculture Equipment operations with separate responsibility
on the basis of three geographical areas: North America, Australia
and New Zealand; Europe, Africa and Asia; and Latin America.
ENHANCING THE VALUE OF HUMAN RESOURCES
The skill level possessed by the Group’s staff is demonstrated
by the high number of professionals it includes (27,800 in total,
40% of whom work outside Italy).
Hiring Qualified Resources. The Group is devoting increasing
attention to recruiting, selecting, hiring and developing recent
college graduates. To that end, it continued to provide support
for the Automotive Engineering School at Turin’s Politecnico
University. This School, which was in its fourth year of operation
in 2002, is now offering a specialized degree program.
In 2002, the Group hired about 900 recent college graduates
from all over the world. These new employees are being offered
special programs designed to encourage their career and
professional development.
Leadership. The process of assessing the leadership skills
of the top managers of the Fiat Group was completed in 2002.
In 2003, this program will be gradually expanded to include all
senior managers.
Management Review. In 2002, about 6,000 employees went
through the management review process, which is designed
to assess both quantitatively and qualitatively their ability to
deal effectively with business issues.
People Satisfaction. Over 36,000 employees participated
in the People Satisfaction Survey, which was offered in 31
countries and 13 languages. The satisfaction index decreased
one percentage point from the previous year.
Professional Development and Training. In 2002, the Group
invested a total of 121 million euros in training programs
designed to support professional development and the
operations of its companies around the world.
Isvor Fiat, which acts as the corporate university of the Fiat
Group, also sells its services to noncaptive clients. In 2002,
Isvor Fiat was especially active, offering 2,400 training,
consulting and professional support programs representing
atotal of 530,000 man days.
An additional 32,000 employees received a total of 79,000
hours of distance- and open-learning support.
Grants and Scholarships. The Fiat Grants and Scholarships
Program, which is available to the children of active Group
employees both in Italy and abroad, is continuing with
considerable success.
Grants and scholarships
2002
Number of grants and scholarships awarded 826
Italy 298
Other countries (*) 528
Total funds disbursed (in thousands of euros) 1,927
(*) The other countries are: Belgium, Brazil, France, Germany, Great Britain, Mexico,
Poland, Spain and the United States.
INDUSTRIAL RELATIONS
Collective Bargaining and Labor Cost Trends. In 2002, average
labor cost increases were in line with the rates of inflation
prevailing in the various countries where the Group operates.
In Italy, basic wages increased according to industrywide
collective contracts, and employees received their annual
performance bonus, computed in accordance with supplemental
company agreements. In 2002, the annual bonus given to Group
employees averaged 1,395 euros (before withholding) per
person, about the same as in 2001.
Discussions with the Unions and Involvement of the
Employee Representatives. On November 11 and 12, 2002,
the Fiat Group European Works Council (EWC) held its annual
meeting in Turin. The Council, which was established in 1997,
comprises 30 representatives from the various European
countries where Group facilities are located. At a meeting in
mid-March 2003, the EWC’s restricted committee received an
update on the progress of the Group’s relaunching effort and
on the outlook for the restructuring program in Europe, such
as the forthcoming restructuring of CNH’s Construction
Equipment operations.
As in the past, the discussions with employee representatives
also continued at country level.
Restructuring and Crisis Management Plans. In Italy, the
restructuring plans primarily concerned Fiat Auto. Initially,
persistent market difficulties and the need to lower overhead
forced the Company to develop long-term unemployment
benefit program (mobility allowance) for about 3,000 employees
Human Resources