Chrysler 2013 Annual Report Download - page 96

95
Report on
Operations
As in previous years, the CEO met with trade unions (signatories to the CCSL) to present the Group’s half-year financial results. At a meeting in
September, the Group and trade unions renewed their mutual commitment to strengthening the contractual relationship, which was recognized
as essential to Fiat’s continued commitment to an industrial presence in Italy. On the basis of that renewed commitment, the CEO announced
that the Group would commence the investment necessary to ensure future production and jobs at the Mirafiori plant in Turin.
The Ministry for Economic Development continued to examine solutions for maintaining industrial activities at the Termini Imerese plant where,
as announced in 2009, the Group ceased production in December 2011.
Collective Bargaining
Collective bargaining at various levels resulted in agreements with trade unions on both pay and work conditions in several countries.
In Italy, Fiat S.p.A. reached agreement with unions on renewal of pay conditions under the CCSL applicable to Group employees in Italy from
2012. The agreement provides for an average increase in basic pay of €40 gross per month, in addition to the introduction of an individual
productivity bonus, payable monthly, based on the actual number of hours worked. Also finalized during the year was the structure of the
FASIF supplementary healthcare scheme, which offers employees different contribution and service levels, in addition to free basic healthcare
cover automatically provided by the Company. As of January 2013, employees under the CCSL are also eligible for a Long-Term Care scheme
(covering long-term disabilities requiring care) and bi-annual checkups for cardiovascular conditions and metabolic syndrome.
The agreement applies for the 2013 calendar year and in November 2013 the Company and unions began negotiations for renewal of the
agreement.
In France and Poland, the results of the company-level collective wage bargaining reflected the negative earnings results in Europe which,
together with continuing negative market conditions, required that any collective wage increases be strictly limited.
In Serbia, the 3-year collective agreement applicable to employees of Fiat Automobiles Serbia d.o.o Kragujevaç was renewed. The negotiation
on wage conditions resulted in average increases in line with inflation. The agreement also provides for an individual “Christmas Bonus” based
on the actual number of hours worked.
In Canada, CpK Interior Products Inc. (owned by Chrysler Canada Inc.) and the United Steel Workers (USW) negotiated a new 4-year collective
agreement providing competitive labor cost provisions and work rules.
In Mexico, Chrysler Group and the Sindicato Nacional de Trabajadores de la Industria Automotriz Integrada Similares y Conexos de la
Republica Mexicana reached a new 3-year agreement, which terminates on 9 May 2016. The agreement represents the Mexican automotive
manufacturing sector’s first ever multi-year agreement.
In 2013, the level of labor unrest at Fiat Group companies in Italy was negligible, both in terms of the number of instances and the number of
employees taking part, despite appearances based on the level of public attention given to certain issues. Local labor action during the year
was also negligible.
Outside Italy, the overall level of labor unrest was again negligible this year, and mostly involved local issues at individual plants.
Management of Production Levels
In 2013, the Group’s earnings results once again reflected the benefits of geographic diversification.
The Group was able to respond to increased activity levels in some markets through the use of flexible labor mechanisms. Market conditions
also enabled conversion of the majority of fixed-term contracts into permanent contracts.