Chrysler 2008 Annual Report Download - page 34

Report on Operations Human Resources 33
There was also intense collective bargaining at various levels
resulting in major agreements being reached with the trade
unions in relation to pay and employment conditions in those
countries where the Group’s activities are located.
Social dialogue
At the European level, the Fiat Group European Works Council
(EWC), a representative body for Group employees in the
European Union, took part in information and consultation on
the Group’s activities, as provided under EU Directive 45/94/EC,
with particular reference to issues having a transnational
impact. The EWC, which has 30 members, was established in
1997 and its composition reflects the geographic distribution
of Group employees in Europe. A meeting was held with the
EWC’s select committee in May. At the annual plenary meeting,
held on 20 and 21 November 2008, management
representatives gave a presentation of Group results, the
principal areas of development, market evolution and
production trend in 2008, in addition to the outlook for 2009.
In Italy, dialogue with the trade unions continued at both
national and local level. At a meeting with the CEO on 23 July
2008, the General Secretaries of the Italian metalworkers
unions (Fim, Fiom, Uilm and Fismic), together with local
representatives from the Turin area, were updated on the
progress of Fiat’s relaunch and development plan and the
initiatives taken to achieve the Group’s stated targets. In
November, the trade unions (Fim, Fiom, Uilm and Fismic)
presented bargaining proposals for renewal of the Group’s
supplemental agreement which expired on 31 December 2008.
A meeting was held at the Employers’ Association of Turin on
16 December with the General Secretaries of the metalworkers
unions and representatives from the local coordinating bodies.
Union representatives presented their bargaining proposals at
the meeting and company representatives described the
current production and employment situation and outlook.
Discussion was also related to the current economic
environment and, in particular, the significant market
turbulence affecting the Group’s business activities, which
caused a sizeable drop in orders and, consequently, a
significant reduction in production levels in the latter part of
the year. At the conclusion of the meeting, the Company stated
its unwillingness to negotiate on the basis of the bargaining
proposals presented by the unions, which it considered
incompatible with current economic reality. However, the
Company did indicate its willingness to negotiate on
employment conditions and evaluate, together with the unions,
the most appropriate method for addressing the fall in
business volumes and the resulting under-utilisation of
production capacity.
Management of production demand
In Italy, the increase in production in the first half of the year
allowed the Group to convert more than 900 fixed-term
employment contracts to unlimited term contracts and to take
on about 370 youths under professional apprenticeship
contracts.
Conversely, to deal with the drop in business volumes
experienced in the second half, many plants reduced weekly
shifts and five-day work weeks were reinstated at most plants
which had previously been operating on a longer work week. A
six-day work week remains in effect only for certain areas of
activity and for a limited number of employees.
In addition to having reduced the number of employees with
fixed-term contracts and agency workers in most Group
companies, it was also necessary for the Group to make
utilisation of an ordinary temporary layoff benefit scheme in Italy
(
Cassa Integrazione Guadagni Ordinaria ). This procedure was
initiated in July at a limited number of plants and was gradually
extended to most of the Group’s Italian plants (with the exception
of CNH Agricultural Equipment and Comau). Production
stoppages reached the peak level in November and December.