Social dialogue 

The new first-level collective labor agreement (Contratto Collettivo Specifico di Lavoro di primo livello – CCSL), replacing the national collective bargaining agreement and other arrangements formerly in place, was signed on 13 December 2011 by Fiat S.p.A. and Fiat Industrial, and by the FIM, UILM, FISMIC, UGL Metalmeccanici and the Associazione Quadri e Capi Fiat. The agreement applies to salaried and hourly Fiat S.p.A. companies’ employees in Italy, and expires on 31 December 2012. The key points of the agreement are:

• the definition of a new base pay, which replaces and exceeds the contractual minimum pay levels formerly applied. The new base pay incorporates allowances that were previously distinct from the applicable minimum wage, which is advantageous for employees who work shifts and/or overtime, as the increased rates will be calculated on a higher minimum wage

• the awarding of a lump-sum €600 Competitive Bonus for 2011

• the introduction of greater flexibility in plant capacity utilization, based on 17/18 shifts per week

• the organization of work week schedules on an average 40-hour basis

• the option of working 120 hours per year overtime, without the need for prior trade union approval

• the introduction of new employee classifications, based on five professional groups, replacing the seven professional categories outlined by the national collective bargaining agreement for metalworkers

• the election of union representatives at the company directly by workers to represent each of the signatories to the collective labor agreement

Finally, the agreement includes a section on employee welfare benefits provided by the company, such as supplementary health care plans, pension funds and benefits for long-term sick leave.

Starting from December 2011, Fiat S.p.A. planned a number of communication initiatives designed to help its Italian employees understand the changes introduced by the new labor agreement. All employees received a paper copy of the new agreement, together with an information leaflet highlighting the key changes introduced and providing practical explanations of, for example, the main items printed on their pay stubs.
The information has been published in digital format on the Group Intranet and is also available on the website.

In October 2011, Chrysler Group and the UAW reached an agreement on a new four-year contract covering about 26,000¹ hourly and salaried-represented employees.
The key points of the agreement are:

• commitment by the company to invest an additional $1.3 billion through the term of the new agreement to retool and upgrade plants for the production of new products, bringing the company’s total US investment to $4.5 billion
• the possibility to add as many as 2,100 new jobs in addition to the more than 2,500 jobs previously added since exiting bankruptcy in June 2009
• rewards for employees for the current and potential future success of the company, while ensuring the continued competitiveness of Chrysler Group
• a new, simpler and more transparent profit-sharing plan that directly aligns with the company’s performance
• implementation of a new quality performance-based bonus that will give employees an opportunity to benefit from improvements in the initial quality of Chrysler Group vehicles
• establishment of an annual upside bonus following the achievement of World Class Manufacturing metrics

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.
Legislation relating to the freedom of association varies from country to country. In some countries, such as 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 most European countries, the law provides for representative bodies elected directly by the workers. Surveys are conducted regularly across the Group to map union membership. In Italy, it was found that 38.9% of metalworkers were trade union members in 2011 (compared with 40.6% in 2010). In the United States, around 72% of Fiat 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 US, the UAW¹ represents approximately 23,000 hourly production workers and 3,000 salaried office workers.

In Canada, the Canadian Auto Workers’ union¹ (CAW) represents approximately 8,000 hourly production workers and 115 salaried office workers. In Mexico, the Sindicato Nacional de Trabajadores de la Industria Automotriz Integrada, Similares y Conexos de la República Mexicana represents approximately 6,135 hourly production workers at eight different facilities. In Venezuela, the Sindicato de Trabajadores de Chrysler de Venezuela represents approximately 825 hourly production workers.