annual report - FIAT SpA

There was also intensive collective bargaining at various levels, resulting in major agreements being reached with
trade unions on pay and employment conditions in most countries where Group companies operate.
Social dialog
At the European level, the Fiat Group European Works Council (EWC), a representative body for employees of Group
companies located in the European Union, took part in information and consultation on the Group's activities, as
provided under EU Directive 2009/38/EC, with particular reference to issues having a transnational impact. Established
in 1997, the EWC is composed of 30 representatives and its membership reflects the geographic distribution of Group
employees in Europe. On April 22nd, the day after Fiat Group presented its 2010-2014 Business Plan to the financial
community, there was an extraordinary meeting of the EWC during which management provided a detailed plan for
each sector, together with an explanation of the rationale behind the demerger announced the previous day. The Plan
also highlighted Fiat's strategy to prepare for the recovery. Concrete and detailed information was also provided on the
Group's overall strategy and there was an opportunity for a mutually beneficial exchange of views. The annual plenary
session (held in Turin on December 10th) was primarily dedicated to providing additional information and a status
update on the demerger of the capital goods activities, in addition to the October 28th agreement on amendments to
the existing EWC agreement made necessary by the demerger. That agreement – signed by FIM, FIOM, UILM,
including in the name and on behalf of the European Metalworkers Federation (EMF) and affiliated trade unions, and
FISMIC, and adhered to by ANQUI, in the name and on behalf of the Fédération Européenne de l’Encadrement de la
Métallurgie (FEDEM), and SNI Fiat France – provides for the establishment, once the demerger takes effect, of
separate European Works Councils for Fiat and Fiat Industrial consisting of 20 and 18 members, respectively, and
each governed by a specific agreement based on the Fiat Group agreement established in 1996. During the course of
the meeting, however, the representative from EMF took the position (speaking also on behalf of the members of the
EWC) that the agreement was not valid, in particular the provisions relating to the Fiat Industrial EWC, stating that the
Italian trade unions did not have the mandate to sign the agreement. Expressing surprise at this position, management
stated that it considered the agreement fully valid, having negotiated in good faith with those whom it believed to be
legitimate counter-parties, and asked EMF to formalize its position taking into consideration the consequences of
decisions made and reserved its right to undertake the appropriate review of the situation, with legal counsel if
appropriate, once such formal communication is received. As of the date of the report, no such communication had yet
been received. In contrast with the request of the Company, during the first half of February 2011, employee
representatives from two Group companies outside Italy sent requests to Fiat Industrial to start negotiations for the
establishment of an EWC.
In Italy, dialog continued with the trade unions at both national and local level and focused primarily on management of
low production volumes and the consequent under-utilization of production capacity. An important element laying the
foundation for the social dialog going forward was the meeting between the Group's CEO and numerous
representatives of the Italian trade unions following the Investor Day presentation on April 21st. With reference to the
2010-2014 Business Plan, the CEO reiterated that a pre-requisite for implementation of the Plan – and, therefore, for
launch of the associated program of investments – would be full willingness and agreement to implement conditions for
its success, including those that would ensure the governability of plants. Several meetings to discuss implementation
of the Plan in Italy, included a meeting organized by the Minister for Labor and Social Policy in collaboration with the
President of the Region of Piedmont – attended by all national and sector trade union organizations – which was held
in Turin on 28 July 2010 to discuss FGA's industrial development strategy and the impact on jobs. During that meeting,
the Group CEO confirmed the Plan’s scope and objectives and reiterated that, before proceeding, Fiat needed
certainty, through specific agreements with the unions, as to normal operating conditions at plants and the ability to
respond to the demands of the market with the speed and in the manner needed to be able to compete internationally.
The first plant where negotiations relative to the Plan were conducted was the G.B. Vico plant in Pomigliano.
Discussions focused on methods for proceeding with production of the future Panda (as announced by the Group CEO
at Palazzo Chigi in Rome on 22 December 2009) and for creating the operating conditions necessary to initiate the
€700 million investment program, by overcoming certain local issues whose continued existence could jeopardize the
end result. On 15 June 2010, after 3 months of complex negotiations, an agreement was reached with FIM, UILM,
FISMIC and UGL Metalmeccanici and approved by 63.3% of workers in a referendum held on June 22nd. That
agreement, which received significant media coverage, was the subject of vigorous debate at local and national level
and was interpreted variously by a wide range of commentators who, in many cases, for propaganda purposes have
assigned value and meaning to clauses in the agreement that do not reflect their real content. On 29 December 2010,
a specific national agreement was established with FIM, UILM, FISMIC and UGL Metalmeccanici (both national
representatives and those for the Province of Naples), and the Association of Fiat Middle Managers, based on the
preliminary agreement of June 15th. That collective labor agreement will apply to Società Fabbrica Italia Pomigliano
from 1 January 2011, which does not adhere to the Confindustria system and, therefore, does not apply the
Confindustria agreements.
With reference to the Mirafiori plant, discussions were held with government and trade unions on July 28th and again
with trade unions on July 29th and October 5th. Negotiations to define conditions and operating methods necessary for
Report on Operations Human Resources
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