Turin

Fiat reaches deal with unions for Mirafiori investments

Marchionne says agreement guarantees future of Turin plant

Fiat reaches deal with unions for Mirafiori investments

Turin, September 4 - Fiat on Wednesday reached a deal with Italian trade unions that opens the doors to a major investment package for the Mirafiori plant in the carmaker's home city of Turin. Fiat CEO Sergio Marchionne said in a statement that the agreement made it possible to "immediately start the investment plan necessary to guarantee the production and employment future of the Mirafiori plant". The deal comes after a period of tension in which Fiat threatened that it could drop its commitments to investing in Italian plants due to problems in its industrial relations here. Fiat has been engaged in a long tussle with the left-wing FIOM union over its drive to introduce more flexible working practices in Italy to make the plants profitable. Marchionne told union representatives that workers at Mirafiori would be temporarily laid off in October and put on CIG benefits while production lines are made ready for it to produce a Maserati SUV model. Rocco Palombella, the secretary general of the UILM union, said Fiat had pledged to invest just under one billion euros in Mirafiori. Ferdinando Uliano of the FIM union said the carmaker also planned to produce another model at Mirafiori in addition to Maserati SUV, while stressing that the company had not said when this would happen. FIM Secretary General Giuseppe Farina, meanwhile, said Marchionne has also confirmed Fiat would maintain its commitments to invest in other Italian factories.

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