Just how long can Fiat’s largest union hold out against reforms, which the automaker is clearly determined to implement?
The FIOM union has called out its members on strike again today (21 July) and Friday in a bid to persuade Fiat to change its mind about planned factory closures and wage restructuring.
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King Canute like, FIOM is railing against what it says is “the undemocratic and intimidating atmosphere in Fiat” and has called a gathering of parliamentary groups, plant representatives and what it refers to as “political forces” in Rome next week.
For its part Fiat – which today unveiled second quarter figures showing a return to profit – is metaphorically rolling its eyes at FIOM’s latest antics.
Led by Sergio Marchionne its vocal CEO, the manufacturer seems determined to push its reforms through – including some plant closures such as the one at Termini Imerese and restructuring at its Pomigliano d’Arco site near Naples.
“It is just unfortunate, we are going through this period where we have to grin and bear it, but we are taking a firm view,” a Fiat spokesman told just-auto today and, indeed, the company does seem determined to have its way.
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By GlobalDataFiat may be prepared to take the short term pain in order to secure what it believes are essential reforms, but FIOM apparently seems determined to frustrate them.
Take the Pomigliano plant. Fiat has reportedly said it will invest EUR700m (US$897m) in the site, which will now receive new Panda production in exchange for more flexible working practices.
But FIOM has objected to some of those moves and has engaged today on the first of this week’s double walk outs.
It will be interesting to see what level of support FIOM garners in the next few days. Fiat says this morning’s strike attracted a 20% turnout, while Friday’s stoppage is as yet an unknown quantity.
So how can long FIOM rage against the machine?
