16.01.2011 FIAT NARROWLY WINS VOTE TO DETERMINE MIRAFIORI FUTURE

ALFA ROMEO MITO

Fiat's senior management has narrowly won a vote that will safeguard the future of the historic Mirafiori factory in the carmaker's hometown of Turin, with workers voting 54.1 percent in a referendum in favour of applying sweeping new contracts which will strip away many long-established rights but which Fiat believes are necessary to introduce to make the plant more competitive.

The news that the vote had gone Fiat's way came from the Fim-Cisl union, one of the five unions involved in the count. Only one of the five unions, Fiom-Cgil, that represent workers at the plant was set against the new contracts - which will spin Mirafiori onto a new entity and remove it from the umbrella protection of nationally recognised Italian labour laws - with the other four unions coming to agreement with Fiat in late December.

The majority outcome of the vote, which took place at the Mirafiori factory on Thursday, was considerably less that the almost two-thirds majority during last year's voting on the future of the Pomigliano d'Arco plant near Naples, although this time Fiat CEO Sergio Marchionne had realistically said beforehand that new would be happy with a simple majority.

Workers came under huge pressure to accept the new contract proposals - which will increase annual working hours and shifts, provide stiffer penalties for absenteeism and striking, and alter the timetables for taking breaks - and a stream of threats from Fiat's top management that production would be transferred away from Italy if the vote went against the company's wishes left workers feeling they had little choice. The carrot dangled was the prospect of building a raft of new models for both Fiat and the Chrysler Group. The vote had caused a national debate in Italy as it is seen by many as opening the way to a fundamental change in the perceived rigidity of Italian employment contracts and the protection that workers enjoy.
 

© 2011 Interfuture Media/Italiaspeed