25.06.2010 FIAT LIKELY TO RETAIN POMIGLIANO PLANT AFTER TWO THIRDS VOTE FOR NEW DEAL

FIAT LOGO

Fiat says it intends to move ahead with plans to boost productivity at its Pomigliano plant after an ample majority of workers voted in favor of changes to labour practices there - reports the ANSA news agency.

Turnout for Tuesday's vote was 95% with 63% of Pomigliano's employees voting in favor of the accord and 36% opposed and although this was outstanding by Italian standards, CEO Sergio Marchionne is reported to be unhappy with the high percentage who opposed his plan.

Marchionne made it clear from the start that without an accord he would close Pomigliano, which he referred to as 'plan B', and before the vote he was quoted as saying that without an approval rating of 80% or more 'that would remain an option. Going into Tuesday's vote all unions except one, the left-wing Fiom, had agreed to Fiat's proposals to boost productivity at the plant near Naples and thus make it feasible to move the production of Fiat's top-selling Panda city car there from Poland.

On Wednesday Fiat issued a statement to say it intended to work with "the unions which assumed responsibility for the accord in order to create the conditions necessary to carry out future projects".

"We appreciate the approach of these unions and workers who share our commitment and understood the importance of the initiative Fiat Group Automobiles has assumed to give a future to its plant in Pomigliano," the statement said. However, the automaker added that it "recognises the impossibility of finding common ground with those who, with arguments which we view as just pretexts, seek to block our plan for Pomigliano."

Observers noted that the Fiat statement was vague and the term 'future projects' left open a number of options, including the so-called 'plan C' which would involve shutting Pomigliano down and then reopening it as a new enterprise and hiring back only workers who accepted its conditions. Fiat is is ready to invest 700 million euros in Pomigliano as part of the automaker's overall 20 billion-euro five-year plan to boost annual auto production in Italy from its current level of 650,00 cars to over one million. In order to do this Fiat demanded concession from unions to boost productivity at Pomigliano where last year its 5,133 workers produced 35,000 vehicles, working 15 shifts a week, while in Poland some 6,000 workers in 18 weekly shifts turned out 600,000 Pandas.

In its proposal, Fiat said Pomigliano would operate 24 hours a day, six days a week with 18 eight-hour shifts which would allow the plant to produce 280,000 cars a year. The accord also shortens work breaks while increasing their number, moves meal breaks to the last 30 minutes of each shift, cracks down on absenteeism and places limits on strike actions. Fiom claimed the accord is unconstitutional because it infringes on workers' right to strike and said it would not accept the outcome of a vote it considers illegal. There were also fears that the 'Pomigliano model' would be imposed on other Fiat plants in Italy. These fears were based on Marchionne's opinion that "flexibility is not something that you apply at one plant and not at another. There needs to be a standard accord for all factories."

Although the outcome fell short of the landslide Fiat wanted, the unions which agreed to the plan called on the automaker to respect its end of the bargain. Speaking before Fiat issued its statement, the head of Italy's second biggest union Cisl, Raffaele Bonanni, warned: "Fiat better not fool around and move ahead with its investments. Workers voted in favor of the accord and so there are no excuses". After the statement Bonanni said: "the great news today is that Fiat has confirmed its investment in Pomigliano. This is a major success. Let this be a lesson to all those who worked against the accord, those who expected a disaster." According to the leader of the UIL union, Luigi Angeletti, "workers in Pomigliano understood and accepted the logic behind our accord." Now it is up to Fiat to confirm its validity by investing there in the coming months. In regard to Fiat's disappointment over the vote, Angeletti said, "if in Italy things could only be done by unanimous consent, then nothing would ever get done."

According to Labor Minister Maurizio Sacconi, Tuesday's vote was not a defeat for Fiom but "a victory for Pomigliano's future", he said. "The accord must now move forward also involving those who did not sign it. I am convinced that no one would want to sabotage the only plan which would allow the investment needed to bring the Panda here," the minister said. Fiom found reason to celebrate from the fact there was no landslide and saw this as a victory for defending workers rights. Union leader Maurizio Landinon Wednesday called on Fiat to reopen the negotiating table because "finding common ground is better than imposing something by force. We are ready to assume all our responsibilities, but consent cannot be imposed". He also ruled out that his union would in anyway seek to sabotage the Fiat plan because "we try to reach agreements in the light of day. If we don't like something, we strike. Other actions are not part of our vocabulary nor the way we do things".

Report courtesy of ANSA
 

© 2010 Interfuture Media/Italiaspeed