Chrysler 2008 Annual Report Download - page 35

Report on Operations Human Resources34
Outside Italy, during the first half of the year there was an
increase in production at plants located in Brazil and Poland in
particular. This involved extensive use of overtime, which in
certain cases exceeded 10% of normal working hours, an
increase in the number of shifts, and the use of fixed-term
workers.
CNH plants applied flexible work-time agreements to meet
fluctuations in production requirements in Belgium and Poland,
which is standard practice given the seasonal nature of the
business.
Also outside Italy, various measures were necessary to deal
with the significant drop in volumes in the latter part of the
year, including production stoppages and a reduction in the
number of fixed-term and agency workers. More specifically,
chômage partiel was utilised in France at CNH, FPT, Teksid and,
to a lesser extent, Magneti Marelli;
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procedures were approved and implemented in
Spain at FPT Componentes Mecanicos, Iveco and Magneti
Marelli; Iveco Magirus made use of the hour-bank system at its
plant in Ulm, Germany; in the United States, CNH instituted
lay-offs lasting some weeks at its Wichita, Burlington and
Calhoun plants, all of which are part of the construction
equipment business.
A limited degree of restructuring and reorganisation was
carried out during 2008. In Europe, this mainly involved the
use of social plans to streamline the parts distribution activities
of Fiat Group Automobiles (Germany) and down-size
operations at Comau and at the Components Sector’s Plastic
Components and Modules business line (France). In North
America, CNH’s also rationalised its financial services
activities.
In Italy, a collective lay-off plan (
mobilità ordinaria ) was
initiated at the Components Sector’s Cassino plant.
World Class Manufacturing (WCM)
Rollout of the World Class Manufacturing programme
continued throughout 2008 at all Fiat Group Automobiles
facilities and several other plants. The programme will
gradually be implemented at all Group plants.
Where WCM is already in place, it has achieved considerable
success in terms of standard performance criteria such as
plant effectiveness and efficiency, waste reduction and
customer service levels, in addition to improving working
methods and the ergonomics of work stations. This
programme also generates innovation and change by
encouraging the full involvement of and contribution from
workers. During the year, the application of WCM
methodologies was also discussed extensively with trade
unions at all levels, building on the existing foundation to
create a constructive atmosphere of sharing and
accountability for common goals.
Collective bargaining
With regard to collective bargaining, the agreements reached
during 2008 provided salary increases in line with or slightly
higher than cost of living increases, enabling employees to
maintain their current level of purchasing power and linking
any additional increases to the achievement of company-wide
performance targets.
In Italy, on 20 January 2008, negotiations were concluded for
the national collective labour agreement applicable to
employees in the metalworking sector (excluding managers).
This agreement applies to about 97% of Group employees in
Italy. The agreement reached between the parties will be valid
until 31 December 2009 (30 months) for the wage-related
provisions and until 31 December 2011 for the provisions
related to employment conditions.