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						Italian Premier Silvio 
						Berlusconi said he hoped Fiat's new production plans do 
						not come with a high cost for the nation after the 
						carmaker decided to shift production of a new model to 
						Serbia, causing a major stir, reports the ANSA 
						news agency. 
						 
						Fiat said Wednesday that a new vehicle that will replace 
						its Multipla and Lancia Musa models, the L0, will be 
						made in Serbia and not, as had been expected, at the 
						Mirafiori factory in its home city Turin. The move comes 
						after Fiat CEO Sergio Marchionne said a plan agreed last 
						year to increase the group's production in Italy will be 
						slowed following tensions with the FIOM trade union, 
						which is linked to the nation's biggest union CGIL. 
						 
						''In a free economy, an industrial group is free to 
						place production where it is most suitable,'' Berlusconi 
						told a press conference after a meeting with Russian 
						President Dmitry Medvedev. ''However, I hope that this 
						does not take place at the expense of Italy and of the 
						(Italian) workers Fiat employs''. Earlier on Friday the 
						government warned Fiat not to make such decisions 
						without consulting labour leaders. 
					
						  
					
						''We call on Marchionne 
						not to act unilaterally, but to have talks with the 
						unions,'' Labour Minister Maurizio Sacconi said. 
						''Marchionne said he was ready to invest in Italian 
						plants and increase their capacity to the degree in 
						which he had normal, non-conflictual industrial 
						relations, without wildcat strikes and hold-ups from 
						individual workers. 
						 
						''These issues must be taken back to the negotiating 
						table to encourage investments, and not provide alibis 
						for making different choices''. FIOM irked Fiat by 
						opposing a flexible working practices deal designed to 
						boost productivity that the company proposed at the 
						Pomigliano d'Arco plant near Naples in exchange for a 
						pledge to invest 700 million euros to make Panda cars 
						there. FIOM claimed the accord is against the Italian 
						constitutional because it infringes on workers' right to 
						strike. In the end Fiat decided to press ahead with the 
						programme this month after other unions agreed to it, 
						despite being disappointed that only around 62% of 
						Pomigliano workers supported it in a vote. 
						 
						CGIL has described the decision to make the L0 in Serbia 
						as part of Fiat's strategy of allegedly bullying its 
						Italian workers into accepting whatever conditions it 
						offers them. FIOM ordered a two-hour strike by its 
						members at Fiat's Italian plants Friday to protest at 
						the recent sacking of five workers at different 
						factories, dismissals which unions have also described 
						as intimidatory. Administrative Simplification Minister 
						Roberto Calderoli, meanwhile, described the L0 move as 
						''outrageous'' Thursday. ''You cannot turn up at the 
						dinner table, eat thanks to government incentives to buy 
						cars and state aid, and then take off without even 
						paying the bill,'' Calderoli said. 
						 
						The decision to shift the new model's production to 
						Serbia also caused dismay among opposition parties. Pier 
						Luigi Bersani, who heads Italy's largest centre-left 
						opposition group, the Democratic Party (PD), said Friday 
						that rather than calling for negotiations, the 
						government should directly summon Fiat and the unions to 
						talks. However, Turin Mayor Sergio Chiamparino, a PD 
						member, said he was confident the Mirafiori plant's 
						future was not in danger after speaking to Marchionne on 
						the telephone. ''I asked Marchionne if it was possible 
						to tackle the issue of Mirafiori and it seemed to me 
						that there was great willingness on his part and a 
						desire not to prejudice the T in Fiat,'' Chiamparino 
						said. Fiat is an acronym for Fabbrica Italiana 
						Automobili Torino - Italian Automobile Factory of Turin. 
						Chiamparino also called on trade unions to do their bit 
						with a ''turning point in reliability''. 
						 
						Fiat also came under heavy fire from unions and 
						politicians last year when it announced plans to shut 
						down its Termini Imerese plant in Sicily. The company's 
						share price rose over 6 percent Wednesday when it 
						announced better-than-expected profit figures for the 
						second quarter and confirmed plans to spin off its auto 
						businesses from other parts of the group. 
					
						  
					
						Report courtesy of 
						ANSA 
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