Chrysler 2015 Annual Report Download - page 228

228 2015 | ANNUAL REPORT
Consolidated
Financial Statements
Notes to the Consolidated
Financial Statements
Italian labor agreement
In April 2015, a new four-year compensation agreement was signed by FCA companies in Italy within the automobiles
business. The new compensation agreement was subsequently included into the new labor agreement and was
extended to all FCA companies in Italy on July 7, 2015.
The compensation arrangement was effective retrospectively from January 1, 2015 through to December 31, 2018
and incentivizes all employees toward achievement of the productivity, quality and profitability targets established
in the 2015-2018 period of the 2014-2018 business plan developed in May 2014 by adding two variable additional
elements to base pay:
an annual bonus calculated on the basis of production efficiencies achieved and the plant’s World Class
Manufacturing (“WCM”) audit status, and
a component linked to achievement of the financial targets established in the 2015-2018 period of the 2014-2018
business plan (“Business Plan Bonus”) for the EMEA region, including the activities of the premium brands Alfa
Romeo and Maserati. A portion of the Business Plan Bonus is a guaranteed amount based on employees’ base
salaries and is paid over four years in quarterly installments, while the remaining portion is to be paid in March 2019
to active employees as of December 31, 2018, with at least two years of service during 2015 through 2018.
During the year ended December31, 2015, €115 million was recorded as an expense in respect of the compensation
agreement.
The Group has commitments and rights deriving from outstanding agreements which are summarized below.
Canada labor agreement
The collective bargaining labor agreement between FCA Canada and Unifor will expire September 2016.
Mercurio
In January 2015, the Group granted Mercurio a put option as a result of the merger agreement described above within
the section —Changes in the Scope of Consolidation.
Sevel S.p.A.
As part of the Sevel cooperation agreement with Peugeot-Citroen SA (“PSA”), the Group is party to a call agreement
with PSA whereby, from July1, 2017 to September30, 2017, the Group will have the right to acquire the residual
interest in the joint operation Sevel with effect from December31, 2017.