Chrysler 2004 Annual Report Download - page 26

for the years remaining (maximum of three) until they are
eligible for retirement benefits. In 2004, about 2,000 employees
became eligible for mobility allowances. About one-fourth of
these employees qualified for long-term mobility allowances.
These allowances, which are available in special cases under
a law that was enacted in April 2003 and remained in force
through the end of 2004, are provided over a longer period
than regular mobility allowances.
Situations that required temporary reductions in capacity
utilization were handled using the “Cassa Integrazione
Guadagni Ordinaria” (Regular Temporary Layoff Benefits Fund).
The “Cassa Integrazione Guadagni Straordinaria” (Special
Temporary Layoff Benefits Fund) was used only for 494
employees at the Arese plant.
Outside Italy, the occupational consequences of restructuring
initiatives were handled primarily through social impact plans
agreed with the unions. The most important agreements
involved CNH (decrease of combine-harvester production
capacity, which resulted in the closure of the Neustadt factory
in Germany); Magneti Marelli (closure of the M.M. Lighting plant
in Cannock, U.K., and grouping of the Motopropulsion facilities
in France, which required the transfer of certain operations from
Nanterre to Argentan); and Comau (social impact program
in connection with the downsizing of the Comau Systèmes
production facilities in France).
As required under the applicable EU Directive, issues
concerning the restructuring of the Group and its current
condition, especially those that have a transnational impact,
were the subject of information and consultations with the
members of the Fiat Group European Works Council at the
meeting of the Restricted Committee in April 2004 and at the
annual plenary meeting on November 8 and 9, 2004. On the
latter occasion, Sergio Marchionne, the Group’s Chief Executive
Officer, explained the key aspects of the strategy adopted by
the new management team and confirmed the commitment
and determination with which the Group is pursuing its stated
improvement objectives. More specifically, he focused on the
actions that must be undertaken, and which are largely already
underway, to ensure the renewal and recovery of Fiat Auto.
The policy of pursuing a dialog and holding discussions with
employee representatives was followed at the national level in
other countries as well, according to local practices and labor
agreements. In Italy in particular, the Group’s Chief Executive
Officer met with Italian union leaders on several occasions, while
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