This content was subject to assurance by SGS Italia S.p.A. (14 March 2014).

Restructring and reorganization

In Italy, use of extraordinary temporary lay-off benefits schemes during 2013 enabled drops in production to be managed, and restructuring and reorganizing programs linked to Group investments to begin or continue.

Redundancy plans launched during the year as a result of an agreement with trade unions affected a very small number of workers - a total of 34 people - and the relevant procedures will be completed by 2015. All the affected employees will become eligible for retirement during the period covered by the collective redundancy scheme (mobilità)(1).  As a result of this scheme implemented following agreements signed with trade unions in previous years, in 2013, about 650 left the Group. As in previous years, the Company granted them an additional redundancy payment set by the corresponding trade union agreements. These included the workers to whom the scheme was applied in 2012: of the 81 workers initially involved, thirty were relocated within the Group.

In Italy, in 2013 the Ministry for Economic Development continued its efforts to find a solution for maintaining industrial activities at the plant in Termini Imerese (which, as announced by Fiat in 2009, ceased production in December 2011). During the year, lay-offs under "mobilità" continued for those workers at the Termini Imerese plant(2) who became eligible for retirement, according to union agreements signed in 2011. An agreement on extraordinary temporary lay-off benefits (Cassa Integrazione Guadagni “in deroga”(3)) was signed in October. Considering the forthcoming completion of the review of reindustrialization projects by the relevant authorities, the benefits were extended until 30 June 2014 for the remaining workers for whom the deadline of the previous scheme was in December 2013.

Also in 2013, the Group took steps to reduce the impact of reorganization on employees. In Italy, at the Fiat Group Automobiles Avv. Giovanni Agnelli plant (formerly Officine Maserati Grugliasco) work was halted for restructuring and extraordinary temporary lay-off benefits were paid to workers. During the year, employees continued to receive training to update their skills for when production activities resume. The training program addressed various contents such as the World Class Manufacturing (WCM) system, ergonomics and work metrics. In 2013, a total of 637 people attended the training courses with the objective of updating and adding basic skills, as well as raising awareness and spreading the use of WCM methodologies for workers placed on the extraordinary temporary lay-off benefits scheme.

As planned, the current production volume of premium range vehicles has allowed employees to return to work.

Outside Italy, stoppages were negligible and there were no significant restructuring and reorganization measures. The reorganization process at the Fiat Auto Poland plant in Tychy, announced in December 2012, was completed in the early months of the year.

 

(1) Government benefit scheme, financed by companies, and applicable to employees affected by collective redundancies for a duration of three years in Northern Italy and four years in the South.
(2) Those employees are included in the data referred to those who left the Group during the year.
(3) Extraordinary scheme to protect workers' income