GRI-G4  11, LA8
This content was subject to assurance by SGS Italia S.p.A. (14 March 2014).

Collective bargaining

Collective bargaining at various levels resulted in major agreements being reached with trade unions on both wage and employment conditions in several countries.

Around 90% of the Group’s employees worldwide are covered by collective bargaining agreements.

 

Italy

In Italy, all Fiat Group employees are covered by such agreements. To this regard, the Fiat Supplementary Pension and Health Fund is particularly important, set up after negotiations between the company and the trade unions and ongoing dialogue between the two parties.

Italian managers are subject to the collective labor agreement for managers at Fiat S.p.A. and Fiat Industrial S.p.A., signed on 23 December 2011 with Federmanager. The contract remained in effect the entire year 2013, and on December 16th, the first meeting for renewal with Federmanager was held.

The agreement was anything but predictable, given the enduring market crisis that the automotive industry suffers and the country's deep economic crisis. It lasted for all of 2013, and on November 25th the company entered renewal negotiations with the trade unions.

Trade union agreement for renewal of the Fiat CCSL

In March 2013, Fiat S.p.A. and the trade unions FIM-CISL, UILM-UIL, FISMIC, UGL Metalmeccanici and Associazione Quadri and Capi Fiat reached an agreement on the renewal of the economic part of the first-level Collective Labor Agreement (Contratto Collettivo Specifico di Lavoro di primo livello - CCSL). It lasted the entire year of 2013.

The main points of the agreement can be summarized as follows:

  • Increase of the minimum wage (the minimum under the CCSL) by a gross average of 40 euros per month as of 1 February  2013
  • Introduction of the production bonus, paid monthly on an individual basis according to the actual number of hours worked. The agreement makes days off for hospital stays and serious illnesses - as well as mandatory maternity leave, trade union meetings and leaves of absence taken by Worker Safety Representatives (RLS) -  equal to full work days
  • Layout of the structure of the supplemental health care plan FASIF. Although it was already laid out in a trade union agreement signed on 11 October 2012 (integrated on 29 October 2013), it is an integral part of the contract renewal as required by a specific article of the CCSL. In addition to outlining the health care plan's different parts concerning contribution and services, the agreement includes the implementation of basic health care coverage for employees at the sole expense of the company. Starting January 2013, employees under the CCSL benefit from annual LTC (Long Term Care) coverage of not self-sufficient cases as well as a biannual cardiovascular/metabolic syndrome screening.

 

Outside Italy

Outside Italy, around 80% of employees are covered by collective bargaining agreements. This is an average figure based on local practice and regulations that vary from country to country. However, it should be noted that in non-unionized Group companies, the company grants 37% of the employees not covered by collective bargaining terms better than, or in addition to, those set by law.

In 2013(1), an analysis was carried out in those countries that have not ratified ILO Conventions on freedom of association and/or the right to organize and collective bargaining. It covered over 97% of the employees of Group companies in Brazil, the United States, Canada, Mexico, China and India, and showed that the application of these rights and principles is ensured through the implementation and application of national legislation.

(1) Data as of 31 October 2013.

  

Brazil

In Brazil, in December, FIEMG (Federaçao das Industrias do Estado de Minas Gerais) and metalworkers' trade unions renewed the economic and regulatory terms of the collective labor agreements in force in the sector for businesses operating in the State of Minas Gerais.

In 2013 company-level collective salary agreements in France and Poland were inevitably affected by the negative economic results in Europe, and the continuing negative market trends called for a strict policy curbing collective wage increases.

 

France

In France, Magneti Marelli Motopropulsion France SA signed an agreement with trade unions aimed at protecting jobs at the Argentan site and to improve competitiveness linked to the increase of production levels. The agreement, which will take effect in January 2014, provides for measures concerning work organization, working hours, and wages. The company confirmed the investment in a new production line and the adaptation of another production line to better suit differently-abled workers, as well as the commitment to maintain the same employment level for three years, also through new hires.

 

Serbia

In December, a three-year agreement was reached in Serbia for the renewal of the collective labor agreement in force at the Fiat Automobili Srbija d.o.o. plant in Kragujevac. The company and trade unions have also concluded collective negotiations on wages that resulted in average raises in line with inflation. The agreement also provides for a Christmas Bonus, the amount of which depends on the actual performance of the workers concerned.

 

Canada

In Canada, CpK Interior Products Inc. (a Chrysler Canada Inc. company) and the United Steel Workers (USW) negotiated a new 4-year Collective Agreement with competitive labor cost provisions and work rules. Major economic provisions of the new Agreement include annual Cdn $500 lump sum payments to employees and annual Cdn $500 lump sum payments to the defined contribution pension plan of each eligible employee.

 

Mexico

In Mexico, Chrysler Group and Sindicato Nacional de Trabajadores de la Industria Automotriz Integrada, Similares y Conexos de la República Mexicana completed the annual bargaining process. For the first time in their history and in the history of the Mexican automotive industry, the parties negotiated a multi-year agreement. The new 3-year agreement will end 9 May 2016. Covering approximately 8,200 employees, it ensures the competitiveness of the cost of labor, since the increase in wages is counterbalanced by savings arising from the implementation of better labor rules. The new agreement also provides for annual US $500 lump sum payments to employees in recognition of their contribution to the achievement of the Company’s plant-specific quality improvement targets. It provides additional bonus incentives for employees at facilities that achieve increasingly higher target audit scores within the Company’s World Class Manufacturing (WCM) system. For instance, employees at the Saltillo Assembly Plant qualified for total payments of US $625 in 2013.

Collective agreements signed during the year at company/plant level

Fiat Group worldwide (no.)

20132012
Collective agreements 384 372

Main issues covered under the agreements

Fiat Group worldwide (%)

  2013 2012
Wage issue 24.5 24.5
Operating issue 44.0 50.5
Restructuring 7.6 4.6
Occupational Health and Safety (1) 8.6 13.4
Equal opportunities 0.8 1.3
Training 7.8 6.5
Other 12.5 21.8

(1) Also includes prevention of work-related stress issues.