According to both the company and labor officials, Fiat’s talks concerning Italian workers wages came to a stall after the automaker said no hikes could be made this year due to market conditions.

After it managed to finally take full control of the US unit of Chrysler, Fiat SpA’s talks with the unions are also closely monitored by Italian government officials – the fear is that Fiat might forsake its promise to protect car manufacturing and jobs in its local market.

“Given that the EMEA region is loss-making, the European market is in difficulty and given that a series of investments have already been launched in Italy, it is difficult for the company to accept wage increase requests this year,” a Fiat spokesman said.

“If in the coming weeks there is no concrete answer on salaries from Fiat, we have to be ready to face a breakdown in our relationship with the company,” said Ferdinando Uliano, national secretary for the Fim union.

Italian unions seek a 90 euros (73.49 pounds) hike in monthly salaries for the 2014 – 2015 period. Now, negotiations between the company and the unions have been suspended until an unannounced date.


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