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In August 2005 the Italian Fiat group presented to the government and the trade unions the new industrial plan: investments for EUR 18 billion in three years, out of which EUR 7.5 for research and development and full employment of the current workforce in all Italian plants by the end of 2008.
The Italian Fiat group is one of the main European car manufacturers. Not only the Group includes the Fiat Auto brand but also it does include the Lancia, Alfa Romeo and Fiat commercial vehicles brands.
On 3 August 2005, the managing director of the group, Sergio Marchionne, presented to the government and to the trade unions the new three-year industrial plan (2005-2008) for the relauch of the entire group and for the recovery of the auto sector in particular. The plan provides investment for EUR 18 billion, the full employment of the current workforce by the end of 2008 and the production of new models.
Investments: EUR 9,550 million will be allocated to Fiat Auto out of which EUR 3,580 will be invested in research and development. The investment for the whole group is estimated at EUR 17,700 (EUR 7,470 for R&D). Moreover, to adapt the painting plants to the new regulations on environmental pollution the group envisaged investment for EUR 150 million.
New models: Twenty new car models will be produced 23 already existing mmodels will be re-styled. The cutting-edge model of Fiat Auto will be a new Grande Punto model which will be produced in Italy. The Group counts also on the production, in 2006, of new Lancia brand models: a new sport utility vehicle, a model belonging to class C or D which will replace the Lybra and a top model. The plan envisages also the production of a new Alfa Romeo top-cass model for the end of 2008.
Plants and production: Fiat managing director, Sergio Marchionne, underlined Fiat’s intention of keeping the entire productive plants open and of achieving the full employment of the current workforce by the end of 2008. Mr Marchionne declared also that the eventual cases of plant reorganisation would be managed through the recourse to the wage guarantee fund (cassa integrazione guadagni, cig) avoiding the use of measures having a more severe social impact.
As envisaged by the plan the full employment of the current workforce will be as follows:
Innovation: As regards Fiat Powertrain Technologies (production of engines and gears) Mr Marchionne announced the creation of new products: a gas engine Fire 1.4 16 v. Turbo, a 4-cylinder 1.6 diesel engine, a 6-gear change commercial vehicle and the study of a environmental-friendly very small twin-cylinder engine.
The implementation of the plan and the finding of the financial resources are based on the group’s capacities of generating the necessary profits and on the access to the state funds provided for by the Law on innovation, development and research (IT0503104F) . As underlined by the managing director of Fiat, Sergio Marchionne, 'in order to be up to competition it was necessary to adopt operative solutions for the plants to improve competitiveness in terms of cost reduction, flexibility in the use of the equipments and productivity. Mr Marchionne declared also that the support of the trade union is essential in the achievement of these objectives.'
The leaders of Italy’s main trade union confederations, the General Confederation of Italian Workers (Confederazione Generale Italiana del Lavoro, Cgil), the Italian Confederation of Workers’ Unions (Confederazione Italiana Sindacato Lavotori, Cisl), the Union of Italian Workers (Unione Italiana del Lavoro, Uil) expressed their positive opinion about Fiat industrial plan. According to the unions the plan contains many positive elements but also many points which should be discussed and verified. The plan will make in fact the object of two bargaining tables in September 2005: one between the company and the trade unions and the other one with the government which will discuss about: social shock absorbers, support to research and development and monitoring of the plan.
According to Savino Pezzotta, secretary general of Cisl, this is a 'concrete industrial plan even if there are some elements which must be clarified … one of the main company of the country took the path desired by the trade union.' Carla Cantone too, confederate secretary of Cgil, welcomed the novelties introduced by the plan and underlined the different approach taken by the Fiat group compared to two years ago. Mrs Cantone underlined 'that there is an inverted tendency with respect to the past but the methods and the objectives must be clarified'.
But, the issue of plant of Termini Imprese and the fact that it will probably not be able to employ its entire workforce during the course of the three years raised many polemics and criticisms especially on behalf of the political world.
The government seemed divided face to the plan presented by Fiat. The Sicilian component of the government majority and in particular the Minister for Development and Social Cohesion, Gianfranco Micciché, declared that the 'plan in not acceptable for Sicily and criticised the submissiveness of the trade union which, in other occasions, proved to be more attentive and sensitive to employment problems'. The trade unions have suddenly interpreted the accusations as a mere electoral campaign and ensured that their main concern is the protection of employment in all the plants of the Group.
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