GRI-G4  DMA, HR4
This content was subject to assurance by SGS Italia S.p.A. (14 March 2014).

Freedom of association and representative bodies

Under the Fiat S.p.A. Code of Conduct, employees are free to join a trade union in accordance with local law and the rules of the various trade union organizations.

The Group recognizes and respects the right of its employees to be represented by trade unions or other representatives in accordance with local applicable legislation and practice.

In 2013, an analysis was carried out in 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 local legislation.  At Magneti Marelli plants in Mexico, the right to representation is also ensured through company practices that support existing legislation.

A survey of workers belonging to trade unions in the Group's various companies is not possible in all countries, since legislation on the freedom of association varies from country to country. For example, in France and Germany the decision to join a union is considered a personal matter for employees, who are not required to inform the company. In countries with a greater presence of Group operations where such data is not considered sensitive, surveys are conducted regularly to map trade union membership.

 

Italy

In Italy(1), it was found that 32.8% of workers were trade union members in 2013 (compared with 33.5% in 2012). In addition to the rights granted to all Italian trade unions and workers concerning freedom of association, the company provides an additional service to its employees by paying trade union dues on behalf of those employees who are members of trade unions that are signatories to the Fiat first-level Collective Labor Agreement (CCSL). Trade union dues for employees who are members of trade unions that are not signatories to the Fiat CCSL are paid either directly by employees or via deductions from employee’ wages(2)  through the company.

Union membership Italy 

Fiat Group in Italy (% of total workforce to whom ccsl applies, excluding managers)

(1) The survey covered a sample of  98.2% of workers under the Fiat CCSL.
(2) Cessione del credito retributivo.
(3) Other trade unions includes independent trade unions

United States

In the United States(1), over 74% of Group employees are union members, almost all of them with the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW). More specifically, with reference to Chrysler Group in the United States, the UAW represents over 36,000 hourly production workers and more than 3,000 salaried office workers.

 Union membership US 

 Fiat Group in US(2) (% of total workforce excluding managers)

(1) The survey covered 99.8% of the US workforce, excluding temporary part-time workers.
(2) The survey covered 99.8% of the workforce, managers excluded.


Canada

In Canada(1),Unifor, the trade union that emerged from the merger of National Automobile, Aerospace, Transportation and General Workers Union of Canada, or the CAW, and the Communications, Energy and Paperworkers Union in September 2013 represents about 9,700 hourly production workers and over 100 salaried office workers.

 Union membership Canada 

 Fiat Group in Canada(2) (% of total workforce excluding managers)

(1) The survey covered all Canadian employees.
(2) The survey covered 100% of the workforce, managers excluded.


Mexico

In Mexico, the Sindicato Nacional de Trabajadores de la Industria Automotriz Integrada, Similares y Conexos de la República Mexicana represents over 8,200 hourly production workers at eight Chrysler Group facilities.

 Union membership Mexico 

 Fiat Group in Mexico(2) (% of total workforce excluding managers)

(1) The survey covered 84% of the workforce, managers excluded.

 

Venezuela

In Venezuela the Sindicato de Trabajadores de Chrysler de Venezuela, L.L.C. represents about 900 hourly production workers.

 

China

Fiat companies in China comply in all material respects with all applicable Chinese laws and regulations. In particular, these companies take measures permitted by applicable laws and regulations to implement advanced practices in terms of labor contracts, working conditions, work safety, establishment of a labor union and participation of the union in the company’s decision-making process. Where provided for under applicable laws and regulations, a labor union is established and provided with the condition of operating inside the company. Where a union is not established (usually in small companies where unions are neither required by regulations nor by the employees), the Human Resources Departments implement the relevant laws and regulations and proactively adopt advanced practices in China, actively communicating with employees on relevant labor and other issues.

 

Representative bodies, generally elected by workers of the site concerned, are entitled to be informed and/or consulted and/or to negotiate matters defined by law or collective agreements in force. In the countries of the European Union, the law provides for the setting-up of representative bodies at companies and/or sites employing a number of workers exceeding the specific minimum limits, while in North America these bodies are present only at sites where there is a trade union. In China, laws and regulations do not provide for the obligation to establish employee representative councils. However, workers are free to set them up in accordance with national labor legislation and based on specific regulations implemented by several provinces and cities. In China, there are currently no national laws or regulations mandating that companies must have an employee representative council, however employees are free to form an employee representative council in accordance with relevant PRC labor laws (mainly: Labor Law, Labor Contract Law and Trade Union Law). Based on PRC labor laws, several provinces and cities have further issued their own rules to regulate the employee representative councils which shall only apply on such provinces and cities.

In Italy, under the Workers’ Statute (Law 300/1970), worker representation in Fiat Group companies takes place through plant-level union representatives (RSA). As of 31 December 2013, there were 887 RSA at the plants of Group companies. The data includes FIOM-CGIL RSAs that are present in Group companies and/or sites as a result of the ruling of the Italian Constitutional Court in July. FIOM's plant-level union representatives were appointed according to the numerical terms set by law and are entitled to the rights provided for by existing law.

The RSAs of trade unions, which are signatories to the Fiat CCSL benefit from more hours of paid leave for trade union-related activities than required by Italian law, as well as from offices and personal computers, made available according to law. In addition, notice boards are provided at sites where the trade unions may display announcements, accessible to all Fiat Group employees.

The participation system set up by the Fiat CCSL fosters dialogue between the signatories and is organized into joint commissions that operate at company and plant level. The issues addressed by these commissions include equal opportunities, occupational health and safety, organization and production systems, company services and absentee monitoring. This last commission tracks the rate of absenteeism due to illness.

At the national level, the participation system provided for by the CCSL sets forth the establishment of the Bilateral Welfare Commission and the Joint Conciliation Commission, whose task is to examine any unresolved conflicts at individual plants.