The gulf in the
relationship between Fiat and its Italian workforce
widened further this week after the carmaker announced
it won't honour existing employment contracts and
collective agreements when it quits the national
employers' body Confindustria at the
end of the year.
Fiat perceives that its domestic staff aren't as
productive as its external workforce, such as at the
Tychy plant in Poland, and believes that competitiveness
needs to be improved if it is to turn a profit in Italy.
It has already imposed sweeping new contacts at three
factories (Pomigliano d'Arco, Mirafiori and Bertone's
former contract manufacturing plant at Grugliasco in
Turin) in exchange for new assembly work being offered.
The unions meanwhile
have been fighting a rearguard action to prevent the
gradual erosion of its members rights, although in
reality only the combative Federazione Impiegati Operai
Metallurgici (Fiom) union has been prepared to try to
force the issue, campaigning unequivocally against the
new agreements and calling out its members.
Fiat's relationship with its domestic staff is never far
from controversy these days and this sudden and
unexpected decision to cancel employment contracts once
Fiat has stepped outside the broad framework of national
collective agreements that come with Confindustria
membership, has sparked widespread concerns in Italy,
and immediate talk of strike action.
Those concerns have bounced Fiat CEO Sergio Marchionne
into issuing a detailed statement yesterday, although
perhaps surprisingly considering the wide potential
impact these changes could have on the stability of his
workforce, the tone contains less gravity. "The
letter sent yesterday to trade unions in Italy was
purely a technical formality to terminate existing
company agreements, some of which had been in place
since the 1970s," reads the statement issued by Fiat in
Turin and attributed to Marchionne. "This results from
our decision to leave Confindustria and, as such, was
fully expected.
"Over the past few weeks, I
announced publicly that all of our auto plants in Italy,
with the exception of Termini Imerese, will have a
precise mission and new product allocations and that,
having avoided workforce reductions even during the
worst point of the crisis, we have no intention of doing
so now that we are working to achieve the conditions
necessary to ensure future growth," continues
Marchionne. "I reiterate that our sole objective is to
bring our manufacturing activities in Italy in line with
standards necessary to compete internationally and
ensure they are capable of competing with the best.
"Yesterday’s formal
notification of our termination of existing company
agreements sent to the Italian trade unions forms an
integral part of the initiatives we are undertaking to
improve the competitiveness and efficiency of our
Italian manufacturing activities. First of all, it is
necessary to replace long-standing agreements that are
obsolete and incongruous with modern operating
requirements and, at the same time, confirm Fiat’s
commitment to establishing as rapidly as possible more
up-to-date agreements with the trade unions that will
ensure the flexibility and governability of our plants,
as well as guaranteeing workers a better working
environment and appropriate financial conditions. Our
long-term objective is the Group’s development and we
are moving in the only direction that will ensure the
necessary competitive capabilities. We believe that
continuing along this path is a very clear demonstration
of our responsibility toward Fiat employees and toward
the nation," the statement concludes.
