Chrysler 2007 Annual Report Download - page 30

bonus linked to profitability, since the “Trading Profit” target of
the Fiat Group was met and topped in 2006.
Outside Italy, the main collective bargaining negotiations held
at the Company level in 2007 included the Company-level
negotiations in France which, varying among the various
Group companies, resulted in wage increases of between 2 and
3%, and thus slightly above the inflation rate for the year.
The wage increases agreed to upon collective bargaining by
the Company in Poland were somewhat more substantial.
These reflected not only the inflation in this country, which is
higher than the average rate in eurozone countries, but also
the productive pressures at Group plants located there, and the
strong claim by trade unions for recovery of wage earners’
purchasing power.
In Germany, collective bargaining was conducted at the level of
each Land for renewal of the metalworking Sector agreement,
which is applied by most of the Group companies operating in
that country. The new agreement envisaged average wage
increases of approximately 6% over two years (4% in 2007 and
1.7% in 2008).
In Brazil, most Group companies have applied collective
bargaining agreements made between the local employers
associations in the sector (e.g. FIEMG for firms in the area of
Belo Horizonte, Betim, and Contagem), while others made
Company agreements at similar levels. Overall, the collective
pay increases were greater than the inflation rate, reflecting
economic growth in the country. Variable annual bonuses were
also paid according to Company results.
There was more labour unrest in Italy than in 2006, due to the
strikes called during negotiations for renewal of the National
Collective Labour Agreement for metallurgical and mechanical
industry workers. In contrast, labour unrest in other countries
was insignificant.
Report on Operations Human Resources 29