Chrysler 2009 Annual Report Download - page 56

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On 15 October 2009, negotiations were concluded on the national collective labour agreement for employees in the metalworking sector (excluding
managers), applicable to around 97% of all Fiat Group employees in Italy. Agreement was reached between Federmeccanica and the trade unions (with
the exception of Fiom-CGIL) based on the new contractual framework established in the Accordo Interconfederale signed on 15 April 2009 (again with
the exception of CGIL). The renewed agreement, whose content is mostly pay-related, is valid for three years beginning 1 January 2010. Provisions in
the October 15th agreement relating to employment conditions contained no substantial modifications to the national collective labour agreement dated
January 2008. On 25 November, the agreement for the renewal of the national collective labour agreement for managers of industrial companies was
signed. This agreement applies to the majority of Group managers in Italy. The new agreement is valid until 31 December 2013 and covers both pay and
employment conditions.
At Group level, on the basis of the Agreement of 17 July 2009 (applicable to the majority of employees of Group companies in the metalworking sector
in Italy) signed by Fim, Uilm, Fismic, and UGL and valid for 2009 only, a performance-related bonus was paid, which averaged €1,943 for employees in
categories 1 through 4. The amount was approximately €500 lower than the average bonus paid in 2008 as a result of the decrease in Group results
reflecting the impact of the global economic crisis. As an interim, experimental measure, in addition to the bonus referred to above, the agreement also
provides for a gross one-off payment of €200 to workers at plants which achieve WCM Silver Level in 2009 or 2010.
Outside Italy, the main company-level collective agreements established during 2009 include the annual negotiation in France which resulted in salary
increases, in line with inflation, of between 1% and 1.5% depending on the company.
In Germany, agreement for renewal of the metalworkers contract, signed in November 2008 and applied by most Group companies in Germany, provided
for salary increases of 2.1% in February and May 2009. A few Group companies exercised the option, provided for in the agreement, to defer the second
increase from May to December 2009.
In Poland, company-wide pay negotiations generally provided for one-off bonuses (rather than structural increases) which averaged around PLZ 2,500 and
were payable in two instalments, one of which was directly tied to and conditional upon the achievement of productivity objectives.
In Brazil, most Group companies applied collective bargaining agreements in place with the local industry associations for each industry sector (e.g.,
FIEMG for the companies in the Belo Horizonte, Betim, and Contagem areas). Others have stipulated analogous company-wide agreements. Overall,
increases under these collective agreements were higher than inflation, reflecting the country’s current economic growth and high production levels at
Group plants but were, however, in line with increases applied for the local industrial system as a whole. Variable annual bonuses were also paid on the
basis of company results.
The level of labour unrest experienced in Italy was higher than for 2008. Minor local labour action was also taken in defense of jobs - including strikes and
protests against the non-renewal of temporary employment contracts and agency contracts and as result of the use of flexible labour mechanisms (transfer
or secondment of workers from other locations or companies who would otherwise have been subject to temporary layoff; use of overtime; introduction
of additional shifts, etc.) at certain plants where there was a significant increase in production levels due to the jump in orders following the introduction of
government incentives to stimulate demand for the automotive sector.
In addition, in relation to the agreement for the Group performance bonus and the agreement for the renewal of the national collective labour agreement for
metalworkers, limited strikes were conducted by Fiom-CGIL, the only trade union organisation which was not a signatory to the agreements.
The overall level of labour unrest in other countries was once again negligible this year.