Chrysler 2010 Annual Report Download - page 61

REPORT ON
OPERATIONS
60
HUMAN
RESOURCES
where a company crisis is due to sudden and unforeseeable events. Additionally, for some plants where this
scheme had already been utilized in 2009, the need to continue production stoppages and the absence of
the appropriate conditions for recourse to other mechanisms, made it necessary to activate the process for
application of the exceptional temporary layoff benefit scheme (provided for under emergency social welfare
legislation). At the end of December, approximately 7,500 workers were covered by this scheme at 8 plants
operated by FGA, Magneti Marelli and CNH.
Despite the continued challenging operating environment, the Group succeeded in converting 750 fixed-term
contracts and over 200 apprenticeship contracts into unlimited term employment contracts.
Outside Italy, recourse to production stoppages continued to be necessary in 2010, however, the use of
“Chômage partiel” in France, “Expediente de Regulacion de Empleo” in Spain and “Kurzarbeit” in Germany
fell approximately 40% over the prior year. Suspension of production, which took various forms, also involved
plants of certain sectors in other countries, such as Poland, Belgium, the UK and the United States.
In Brazil, although higher production levels in the first half led to the use of overtime and additional shifts, as
well as a considerable increase in headcount, the growth in net new hires slowed in the second half of the year.
In Poland, Fiat Group Automobiles had to resort to overtime during the first half, but production levels fell in the
latter part of the year, also impacting the Group’s suppliers, with production being suspended for several days.
In 2010, all principal sectors took steps to restructure and/or reorganize their activities in Italy. In agreement with
the unions, plans were initiated to reduce headcount by about 1,500 between 2010 and 2011. All employees
concerned would become eligible for retirement during the period covered by “mobilità” (a government benefit
scheme applicable to employees affected by collective redundancies for a duration of 3 years in northern Italy
and 4 years in the south). The number of employees leaving the Group during the year under the plans agreed
in 2010 and 2009 was about 1,000 and 400.
In Spain, the Barcelona plant of Componentes Mecanicos S.A. (COMESA) announced that production would
be discontinued as it was no longer economically sustainable due to the severe crisis in the trucks and
commercial vehicles industry, for which Comesa produced components, and the impact of the decision of
the partner (ZF Driveline Technology business) to withdraw from the company and transfer production to its
other plants. On December 27th, a majority of workers voted in favor of the agreement signed between the
company and trade unions relating to closure of the plant and redundancy packages for approximately 270
staff. Also in Spain, Iveco reached an agreement with unions concerning the reduction of at least 56 employees
at its Valladolid plant. A similar agreement was signed for the Barcelona plant, providing for a reduction of at
least 42 employees. The total headcount reduction of 116 employees was achieved through the departure of
employees qualifying for early retirement, the departure of employees with less time in service accompanied
by a commitment to rehire those employees (“relevo”) to replace personnel opting for early retirement, and
through voluntary redundancies.
In the United States, CNH initiated an incentivized voluntary redundancy scheme, pursuant to the agreement
with the UAW, for employees wanting to retire. During the year, approximately 58 workers adhered to the
scheme.
No significant restructuring or reorganization initiatives were implemented in other countries during the year.