ITALY / FILE: Union leaders say Fiat-Chrysler deal 'useful' but want protection of Fiat plants in Italy

Record ID: 721242

  • Title: ITALY / FILE: Union leaders say Fiat-Chrysler deal 'useful' but want protection of Fiat plants in Italy
  • Date: 30th April 2009
  • Summary: ROME, ITALY (APRIL 29, 2009) (REUTERS) (SOUNDBITE) (Italian) GIORGIO AIRAUDI, HEAD OF FIOM UNION IN TURIN SAYING: "We think that whilst Fiat is starting a big international operation to consolidate the automobile industry, we don't think they are giving any guarantees to the factories in Italy. We think the Italian government is behaving like a supporting fan, that is the Italian government is looking on from the sidelines watching what Fiat is doing, applauding international alliances but it is not asking Fiat for any commitment in our country. Now independantly from Chrysler we think Italian workers are at risk because we think there will be a reconstruction of the automobile industry and we think the only ones who will be saved will be those who have strong industrial and political backup from their governments.''
  • Embargoed: 15th May 2009 13:00
  • Keywords:
  • Topics: Industry,Employment
  • Reuters ID: LVA7K6CBAZAV35S78IIFBIEN95ON
  • Story Text: Fiat's alliance with Chrysler appears to be a "useful"
    business move that won't hurt Italian workers, but future consolidation in Europe might, an Italian labour leader said on Wednesday (April 29).
    Giorgio Airaudo, secretary general of the FIOM-CGIL union in FIAT's home-base of Turin, said that Italian workers would demand job guarantees going forward to protect them in case FIAT-Chrysler gobble up a big company in Europe.

    "We think that whilst Fiat is starting a big international operation to consolidate the automobile industry, we don't think they are giving any guarantees to the factories in Italy' Airaudo told Reuters.

    "Now independantly from Chrysler we think Italian workers are at risk because we think there will be a reconstruction of the automobile industry and we think the only ones who will be saved will be those who have strong industrial and political backup from their governments'' he said.
    FIAT Chief Executive Sergio Marchionne faces a Thursday (April 30) deadline to close a deal to form a partnership with the ailing U.S. car maker, which employs more than 40,000 factory and salaried employees.
    Under the terms of the proposed partnership with Chrysler, no money is changing hands. Fiat is offering technology to make small cars and access to foreign markets in exchange for entry into the U.S. market and a stake in Chrysler.
    More troubling would be a partnership closer to home. Marchionne has already shown an interest in Opel, the German unit of General Motors Corp.
    Combining Opel and Fiat, for example, would create the second-biggest car maker in Europe behind Volkswagen.

    "I think everything is still open regarding Opel, what is certain is that Fiat cannot stop with the Chrysler agreement' Airaudo said.

    "The Chrysler agreement is part of the road that (Fiat CEO Sergio) Marchionne has mapped out, that is 5-6 million cars to be produced in order to justify the investment but this is not sufficient. Chrysler and Fiat together will produce a little more than 4 million cars, so we are still missing an important partner and it is clear it will be either European or Asian,"
    he said.
    An announcement on the Fiat-Chrysler deal is expected some time on Thursday, a move the unions will not be fighting.

    "This deal with Chrysler doesn't hurt us, it gives us some hope because if Fiat becomes stronger it is more solid and if it is more solid there needs to be a guarantee that it stays in Italy. We don't want to see a strong Fiat in the world but disappears from Italy," Airaudo warned.
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