analysis: fiat's marchionne fights for new car industry rules - new car alarm system
ROME (Reuters)-Fiat FIA.
MI boss Sergio Marchionne will be showdown with a strong industrial lobby group as he pushes for more flexible work practices that could lead to broader rule adjustments in the Italian auto industry.
Marchionne is concerned that Fiat's opposition to one of the five unions at a poorly performing factory in pomino Arco near Naples could undermine a landmark productivity agreement and demand it be in September.
If he could not find a deal, he threatened to withdraw from Confindustria, an employer lobby group representing large Italian companies in the past 100, which is equivalent to withdrawing from the system that supports Italian labor relations.
"Fiat is Italy's largest industrial company and other companies will soon follow suit," said Giuliano kazora, vice chairman of the parliamentary Labor Committee.
A new company has been created to operate the Pomigliano plant, which will be outside of Confindustria and therefore not subject to the national contract rules currently applicable.
But if Fiat is lost, it will weaken Confindustria, dig a hole in a system that has been praised for its stability in the economic crisis, and possibly boost the volume of local deals
Charming Canadian Marchionne
The Italian management star has played an important role in reversing Fiat and the troubled US market. S.
Chrysler says the issue will determine Fiat's future in Italy.
Juergen Pieper said: "for Fiat, restructuring the Italian production base and improving efficiency is the key, otherwise the whole recovery will collapse soon if Marchionne leaves . " Analyst at Metzler Equities in Frankfurt.
"In order to make Fiat truly competitive, it is very important to get new working conditions, because Italy is not a cheap place to produce cars, and Fiat is now too dependent on the energy and motivation of the CEO.
New car sales in Italy have fallen by 19, according to recent data.
2% in June, the challenges faced by an industry that was being forced to rethink the way it worked were highlighted.
"The only thing we are asking for is more reliability inside the factory," Marchionne wrote in an article last month at Fiat-owned Torino daily La Stampa.
Although 62% of the four and 4,800 employees of the five unions have approved the plan, which introduces a new Saturday night shift and limits the right to strike, FIOM-
CGIL, the union of major Italian engineering departments, refused to sign the agreement. FIOM-
CGIL said that the agreement violated the national wage and conditions agreement and even violated the constitutional right to strike, which raised concerns about possible legal challenges.
Marchionne bet € 20 billion$25. 60 billion)
It plans to increase Fiat's production in Italy to one.
By the end of 2014, sales of 4 million cars had reached the current 650,000, but he said his hands were tied to the current system.
The productivity of the Italian Fiat plant is significantly behind the cheaper places in Eastern Europe, and the managers of Pomigliano also have to deal with local problems, including the attendance rate sometimes as high as 30%.
Many analysts believe that Marchionne's goal is to sign a new labor contract for the automotive industry, which will break with the current agreement, with some narrow exceptions, set Standard conditions for workers in the Italian metal industry.
The contract imposes restrictions on working hours rules, limits shifts throughout Saturday afternoon and evening, and limits additional hours of work that the company can prescribe.
"The working hours conditions set out in the metal workers contract are a big obstacle for Fiat," said Giorgio Santini, a CISL union official supporting the Pomigliano agreement.
The possibility of Fiat leaving Confindustria raises an alarm among business lobby groups and unions, and may find that a transaction will increase the scope of more precisely tailored departmental transactions in the current system.
"I think they will get it and Fiat will stay in Confindustria," said former Labor minister Tiziano Treu . ".
"If there are no broader exceptions to national contracts, the whole system will collapse.
"One possibility is that Confindustria will meet with the union in September to agree on broader exceptions to the automotive industry.
More moderate unions such as CISL and UIL, which support the Pomigliano agreement, I am particularly keen to reach an agreement to maintain the overall structure of central country transactions while allowing more flexibility.
They support more lenient restrictions, but hope that transactions anywhere will be supervised and approved by the National Federation, believing that this will prevent abuse and exploitation while still allowing flexibility required by fiat.
But the more difficult thing is
It is expected that the CGIL group will oppose any changes to the old rules, and supporters of the Pomigliano deal want to find a way to weaken its resistance or face a potentially lengthy struggle in the workshop.