Vote count close in landmark Fiat plant ballot
Partial referendum results on a groundbreaking labour deal at Fiat SpA's money-losing Mirafiori plant pointed to a very close race early on Saturday, with the "no" vote slightly ahead.
January 15, 2011 / 10:24 IST
Partial referendum results on a groundbreaking labour deal at Fiat SpA's money-losing Mirafiori plant pointed to a very close race early on Saturday, with the "no" vote slightly ahead.
The accord limits strikes and absenteeism in exchange for Fiat's promise to keep investing in Italy. The 5,500-strong workforce at the Turin plant voted on Thursday and Friday on the deal, which has been approved by most unions at Mirafiori.Chief Executive Sergio Marchionne, who engineered the Italian carmaker's 25% stake in Chrysler and transformed Fiat from an ailing conglomerate, has threatened to deploy the cash abroad if workers reject the changes. The vote was seen a very close call. By 2330 GMT results from two of nine polling stations inside the plant gave a slight advantage to the 'no' camp, according to spokesmen for the FIOM, FISMI and FIM unions.But Turin consultancy Termometro Politico was predicting 52% of voters would eventually back the deal, based on exit polls and early results, according to its website.The contract is part of a Fiat-led unprecedented overhaul of Italian labour relations, which have been based on national deals rather than on a plant-by-plant basis."The Mirafiori accord ... is destined to be emblematic for the future, to keep factories open in Italy," Prime Minister Silvio Berlusconi told national television on Friday.If workers accept the new contract, the company has pledged to invest 1 billion euros (USD 1.3 billion) to build new, high-end Alfa Romeo and Chrysler models at Mirafiori, Fiat's oldest plant and a symbol of Italian industry.A simple majority is needed for approval. Turnout was heavy, with more than 96% of workers voting. The contract has already been agreed at another of Fiat's five Italian factories. All of them lose money.However, Fiat, Europe's No 6 carmaker by market share and Italy's biggest industrial group, also needs the deal to work in order to safeguard sales in its home market.Cuts breaksThe proposed deal is part of a 20 billion euro "Fabbrica Italia" plan to double domestic production by 2014. It targets widespread absenteeism by curbing pay for those who take repeated sick leave around holidays and by ending wildcat strikes.It cuts the number of breaks per eight-hour shift to three from four and raises the number of shifts to 18 a week from 15. Fiat can also call on each worker for 120 hours of overtime per year without union approval."This is an innovative deal that radically changes labour relationships in Italy and brings it closer to other western democracies," Roberto Di Maulo, secretary general of the FISMIC union, which backs Marchionne, told Reuters at the factory gate.But the leftist FIOM-Cigl union, which says it represents around 23 percent of Mirafiori workers, has resisted the changes.Mirafiori makes the Punto model and needs to roll out new models to survive. Fiat's European sales fell 17% last year and its market share dropped to 7.6% from 8.7% in 2009. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
