Fiat’s national labour agreement inked with the majority of its unions has provoked the ire of its most hardline labour body, which has denounced the deal as ‘worsening working conditions’ for its members.
The Italian automaker confirmed to just-auto today (14 December) it had agreed a 5.2% pay rise, a EUR600 (US$778) bonus and 10% extra for overtime working, in a one-year contract applicable to its 86,000 employees.
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Fiat has extracted in return a ten minute reduction in breaks to 30 minutes thrice-daily and the flexibility of its staff to work up to 120h extra per year on Saturdays should the market demand it.
The breaks are in addition to a standard lunchtime across an eight hour shift, but should employees be required to work Saturdays, this will attract a 60% extra overtime rate.
“The agreement represents an historic turning point for Fiat and Fiat Industrial and
our workers,” said Fiat CEO Sergio Marchionne. “The new contract provides us a modern instrument that reflects international standards for the industry and will enable both groups to operate more efficiently and create the conditions essential for continued investment in Italy.
“Reaching an agreement was not easy but everyone at the table understood perfectly that perpetuating the models of the past – the models responsible for our plants in Italy falling so far behind standards in the rest of the world – was no longer possible. The unions that embraced this challenge alongside us deserve recognition for their courage to change things. It is also a demonstration of the will of the majority within society to say no to the professional critics, to roll up their sleeves and resolve the problems and, above all, do the work necessary to find the solutions.
Four of Fiat’s five unions have signed up to the deal – namely FIM, UILM, FISMIC and UGL as well as the Capi and Quadri white collar labour body.
But the agreement has infuriated the FIOM union, representing around 12% of Fiat workers, which has lambasted both the new contract and its fellow labour bodies.
“The agreement with Fiat worse [ns] working conditions and limits the freedom of association for workers in the group,” said FIOM-CGIL secretary general Maurizio Landini.
“In addition, Fim and Uilm have succumbed to the blackmail of Fiat agreeing to be reduced to the role of trade unions and corporate business, so abdicating their history of union confederations.”
“We think the government can not stand by and watch because the separate agreement says nothing of the investments in the largest industrial group in our country.”
Fiat declined to be drawn on speculation it could invest up to EUR20bn as a result of the new agreement.
