Chrysler 2012 Annual Report Download - page 100

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Report on Operations
Industrial Relations and Social Dialogue
As stated in the Fiat S.p.A. Code of Conduct, the Group recognizes and respects the right of its employees to be
represented by trade unions or other representatives elected in accordance with local legislation and practice.
Fiat Group maintains relationships with trade unions and employee representatives that are based on mutual
respect, dialog and constructive engagement with trade union organizations and employee representatives.
During 2012, the dialogue continued with trade unions to achieve shared solutions to attain high standards of
competitiveness and reduce the impact on workers of measures adopted in response to market conditions in
Europe, which were particularly critical in Italy.
In Italy, Fiat Group companies applied the new contractual system (CCSL) signed at the end of 2011 with
FIM-CISL, UILM-UIL, FISMIC, UGL Metalmeccanici and the Associazione Quadri e Capi Fiat. Negotiations for
renewal of the contract began in October 2012.
The Fiat CCSL represents a change in the collective bargaining system in Italy with Fiat S.p.A.’s withdrawal
from Confindustria opening the way for direct negotiations between the company and trade unions, effectively
replacing the national collective bargaining agreement. The structure of the contract more adequately reflects
the characteristics of a major multinational industrial group such as Fiat.
The Group CEO met with the signatory trade unions during the year to present the interim results. Despite the
extremely challenging economic conditions in Europe which have had grave consequences for the auto market,
particularly in Italy, the Group gave unions confirmation of its commitment to maintain existing production
capacity in Italy and its intention not to reduce headcount, as long as there is continued availability of the
temporary layoff benefits provided under law. Fiat also confirmed that it would resume investments at all Italian
plants where production based on the Group’s global platforms is to be allocated. At the SATA Melfi plant on
December 20th, Fiat Chairman John Elkann and CEO
Sergio Marchionne presented plans for the production
of a Jeep brand Utility vehicle and the new Fiat 500X
beginning in 2014. Following an investment program
of more than €1 billion, Melfi will be one of the most
advanced car assembly plants in the world equipped
with the very latest technologies and managed according
to World Class Manufacturing standards. Activities to
ready the plant for production of the two new models
have already begun.
The plan selected by Invitalia (advisor to the Ministry
for Economic Development) to ensure continuation
of industrial activities at the Termini Imerese plant
(Italy) – where, as announced in 2009, production
ceased at year-end 2011 – did not go ahead. The
Ministry for Economic Development is still seeking an
alternative solution. At the European level, European
Works Councils (EWCs) function as a supranational
representative body whose purpose is to inform and
consult workers at Community-scale undertakings.
The Fiat Group EWC was established in 1997, on the
basis of the implementing agreement signed in 1996
and subsequently revised and amended. The latest
agreement renewing Fiat S.p.A.’s EWC was signed on
28 June 2011, although the membership of the EWC
has not yet been fully appointed.