The Italian automaker Fiat has recently agreed with the labor unions to put 2,000 employee at the Pomigliano D’Arco plant on solidarity contracts until the end of the year.
Working on solidarity contracts means that workers will work the same amount of time but be paid less. The good part of this agreement is that no one will be fired. Fiat said that this agreement will affect only the service workers and not employees operating on the assembly lines
According to the labor unions, workers prefer the solidarity contracts rather than being laid off. During the solidarity contracts employees will receive 60% of their salaries, while 20% will be covered by the government.
In 2012, Fiat’s Pomigliano d’Arco plant has received a silver World Class Manufacturing medal for its outstanding production and management. Still, last year rumors that Audi would buy the plant spread quickly. According to anonymous sources CEO Marchionne would have considered back then to sell Alfa Romeo and the Pomigliano d’Arco to raise money and buy Chrysler to create the Fiat-Chrysler automaker.
Fortunately that was not the case and although Fiat has to deal with the crisis in Italy, a solution has been found: the solidarity contracts which have never before been applied in the auto industry, except for Iveco.