Chrysler 2011 Annual Report Download - page 68

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On 1 January 2012, Fiat replaced the CCNL with the new Group-level agreement, which under Article 8 of Law 148/2011 has full validity
given that the majority of metalworking sector trade unions are signatories.
As a result of the departure from Confindustria, national collective bargaining in relation to employee representation is no longer
applicable. Therefore, representation is based on statute, under which only trade unions that are signatories to the agreement can run
in elections for employee representatives.
Indirectly connected to the new agreement was the establishment of a joint Health & Safety board on 4 April 2011. The role of this bilateral
board – composed of representatives from Fiat and Fiat Industrial as well as FIM, UILM and FISMIC – is to define training programs, as well
as proposing and developing joint initiatives relating to health and safety in the workplace, in line with initiatives first implemented in 2009
under the Health and Safety First project. Formally instituted in the agreement of December 13th, this board provides a model for bilateral
development of training initiatives and will work alongside the analogous joint board for training and apprenticeships.
Fiat completed the process for closure of the Termini Imerese plant by year end – as first announced on 18 June 2009 at a meeting
between Fiat Group and the Italian government, local authorities and trade unions – in accordance with the original intent of ensuring
a continuation of industrial activities at the site. From the outset, the Group had declared its willingness to work with government and
unions in supporting any viable proposals for conversion of the site put forward by the Region of Sicily, or other public or private sector
entities. At the technical roundtable initiated on 29 January 2010 at the Ministry for Economic Development – involving representatives
from the national government, the Region of Sicily, trade unions, Confindustria Sicily and Fiat – Invitalia (advisor to the Ministry for
Economic Development) selected the plan put forward by DR Motor Company, which committed to hiring all Fiat Group employees in
the area, with the exception of those that would qualify for retirement during the periods covered by the temporary and permanent layoff
benefit schemes, paving the way for finalization of the investment plan presented on 16 February 2011. On this basis, an agreement
was concluded at the Ministry for Economic Development on 1 December 2011, under which Fiat will also transfer ownership of
the plant to DR Motor Company at no cost once the company has satisfied its commitments relating to employment. Finally, on 5
December 2011 an agreement was reached with trade unions to place 629 workers on a redundancy scheme who will become eligible
for retirement during the scheme period.
Management of production levels
During 2011, conditions remained extremely varied from market to market, with North America being the only region to demonstrate
signs of a recovery from the dramatic contraction in demand first evidenced at the end of 2008. In Italy, the auto sector underwent
a further contraction and all Group companies, with the exception of Comau and Ferrari, increased utilization of temporary benefit
schemes to manage the impacts of reduced production levels. Where funds available under ordinary layoff benefit schemes were
exhausted, companies made recourse to extraordinary schemes applicable for company restructuring or crisis.
For Officine Automobilistiche Grugliasco (part of FGA) the existing extraordinary scheme for company restructuring was extended for a
further 12 months, until November 2012, in consideration of the Group’s significant commitment to invest in production of the new Maserati.
“New collective agreement:
the courage to change together”
Report on Operations