Fiat CEO Sergio Marchionne has sent an open letter to Italian manufacturing body Confindustria outlining why it is to withdraw from the organisation from 1 January next year.
The decision appears to have been provoked by what Marchionne refers to as an “interconfederate agreement” signed by the national trade unions and promoted by Confindustria, as well as a Parliamentary ‘Article 8’ labour reform deal and which seems not to have been implemented to Fiat’s liking.
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Marchionne said the new framework would have allowed Italian business to compete internationally in conditions that were “less disadvantageous” in comparison to those of its competitors.
But in the letter to Confindustria president Emma Marcegagli, Marchionne says: “However, the signing of the interconfederate agreement of 21 September sparked a heated debate that – as a result of the contradictory positions subsequently taken and even declarations by some of their intention not to apply those agreements in practice – has significantly diminished confidence in the effectiveness of Article 8.
“There is a risk, therefore, that the effectiveness of the mechanisms provided under the new legislation will be undermined and operating flexibility severely limited.
Fiat, which is engaged in the creation of a major international group with 181 plants in 30 countries, cannot afford to operate in Italy in an environment of uncertainty that is so incongruous with the conditions that exist elsewhere in the industrialized world.
“It is for these reasons, none of which are politically motivated or connected to our future investment plans, that I am hereby confirming that, as indicated in our letter of June 30 that Fiat and Fiat Industrial have decided to withdraw from Confindustria with effect January 1 2012.”
Despite the withdrawal, Marchionne added Fiat was evaluating the possibility of collaborating, in a form yet to be agreed, with several local or regional organisations belonging to Confindustria, including, in particular, the Unione Industriale di Torino.
The automaker also noted it would “exercise our freedom to rigorously apply the new legislative provisions,” while relations with employees and trade unions would be conducted in a manner that did not infringe on rights of workers and in “full respect of the roles of all concerned, consistent with the agreements already reached at Pomigliano, Mirafiori and Grugliasco.”
Marchionne said the move had been reached after long consideration, adding: “It is a decision that we cannot back away from because we are committed to playing a leading role in the industrial development of this nation.”
