Detroit Free Press - Fiat and Chrysler CEO Sergio Marchionne got an early Christmas present Friday when Italy's labor unions ratified a new labor agreement.
Earlier this month, Marchionne called the tentative agreement "a historic turning point for Fiat and Fiat Industrial."
The agreement, Marchionne said, gives the two companies the ability to use its factories more efficiently with greater flexibility for overtime.
Fiat's labor talks took place against the backdrop of Italy's debt crisis and the growing recognition that the country must reform its economic and labor policies to compete globally.
On Friday, UILM (Unione Italiana Lavoratori Metalmeccanici) said 513 of 630 -- or 81% -- of union delegates that belong to about five unions voted in favor of the agreement.
"This means that ... from 1 January 2012, all employees of the group led by (Fiat Chairman John) Elkann and Marchionne will have a specific contract that protects them and improves economic and regulatory conditions," UILM said in a statement Friday. The new labor agreement covers 86,000 workers in 60 plants in Italy for Fiat and Fiat Industrial.
Leading up to the agreement Marchionne faced tough opposition as he sought more flexible terms in exchange for future investments in Italian plants.
At times, Marchionne suggested that Fiat could move production out of Italy if it could not reach a favorable agreement. Fiat owns 53.5% of Chrysler.
Fiom, Italy's largest and most militant union, did not sign the agreement, but its members will be covered by the agreement. Fiom represents 12.5% of Fiat's workers in Italy.
"Reaching an agreement was not easy, but everyone at the table understood perfectly that perpetuating the models of the past ... was no longer possible," Marchionne said Dec. 13 when the parties reached a tentative agreement.
