REPORT□ COLLECTIVEBARGAINING INITALY Undermining collective bargaining: Fiat-Chrysler agreement I subordination benefits the for increased not in the productivity will Pomigliano the a employees start employment new again whole they year's be Such meantime and working to plant are in only is work year: time they that one will has the on of in if subordinationthat the employees of the new plantin Pomiglianowill notstartto work fora whole year: inthe meantime theyare on employment benefitsand they willbe working again onlyif productivity has increased inone year's time FEDERICA MICOLI, Labour lawyer, Italy/South Africa The eral (i.e. role source to all ofthe the of collective workers law applicable of agreement a same "erga industrial as omnes" a generalsourceoflaw applicable"ergaomnes" (i.e. to all theworkers ofa same industrial sector)has neverbeen questionedin Italysince ourConstitution cameinto effect in1945.Although theprocedure prescribed bytheItalian Constitution for therecognition ofthegeneral binding force of collective agreements wasnever enacted, theunity oftheunions,on one side,and thedecisionsof thejurisprudence, on theother, havealwaysreinforced andconfirmed thecommonacceptanceof thisprinciple. Thefewepisodesof"contrattazione separata" in the 1980s and 1990s (Separate Collective Bargaining), often stimulated andsupported bya complacentGovernment, wherea fewunions wouldsigna separate agreement withone orfew employers, werealwaysovercome bytherenewal ofthemaincollective agreement for thesector. Eventheagreement between Confindustra (The Industrial Employers Confederation) andtheUnions in 2009 ("Accordointerconfederale"), thatsanctionedthedecentralisation ofcollective bargainingallowing fordeviations from thenational collectiveagreement (by singleemployers, or local agreements), although anomalous becausesigned with the abstentionof CGIL (Italian General Confederation ofLabour),was also restrained in increasing peripheral contractual power. Recently, however, theeventssurrounding Fiat havedefinitely compromised thepositionofthe trade unions within theItalian legalsystem andtheir legitimacy in producing generally binding rules, bringing theItaliancollective bargaining pattern closertotheAmerican one ina worrisome way. Andthisnotbychance. Fiat-Chrysler Agreement Thebackground tothesechangescanbe found in recent agreements between FiatandtheAmerican firm Chrysler. In 2009 Chrysler was technically bankrupt. Thebankruptcy, ifdeclared, wouldhave cost30thousand jobs.President Obamaidentified Fiatas thesaviour.MrSergioMarchionne (Fiat CEO) promisedObama he would transfer to Chrysler thetechnologies andtheknow-how developed byFiatto producesmalland less polluting cars.Fiatborrowed from thebankstobuya quota inChrysler. Thequotawas21percent atthebeginning , nowitis53-5 percent, after Fiat bought shares from theUS Treasury andCanada. Ithasalready beenannounced that theFiatheadquarters willbe movedtoDetroit, whileitisinthe airthat soonFiat-Chrysler willbe quotedon Wall Street. Asa consequence, theproduction system in theItalian Fiatplants neededtobe rearranged and reorganised. Unfortunately, asMsSusanna Camusso, President ofCGIL,argues, apart from theintroductionof the new production systems Wemand ErgoUas, basedonthetheories andmethods ofthe renowned MrFrederick Taylor andMrHenry Ford, no economic planhasbeendevelopedbyFiatfor theItalian branches. From nowon they willoperateinsubordination towhathappensintheStates, no matter ifthisgoes to thedetriment ofItalian workers' rights andofthewholeItalian system of industrial relations. Suchis thesubordination that theemployees ofthenewplant inPomigliano will notstart toworkfor a wholeyear: inthemeantime they areon employment benefits (so called"Cassa Integrazione Guadagni") andthey willbe working againonlyiftheproductivity andthesalesofthe wholemultinational haveincreased inone year's time;otherwise theywillbe maderedundant. It appearsthatMrMarchionne demandedfrom the workers an immediate sacrifice butthereward he promised inexchange canobviously wait, andmay nevercome. AsI mentioned, thecollective agreements signed byFiatwiththetwoItalian plants contain a numberofviolations ofemployment rights, butthisis nottheplacefor that kindofanalysis, orfor considerations onthemerits ofMrMarchionne's strategicchoices .Thefirst willcertainly be a matter for thealready cloggedItalian Labour Courts, thesecondbelongstoother areasofexpertise. Inthis context, itismoreimportant tounderline how,in thenameofproductivity and underthe menaceofrelocation ifthey didnotagreetoFiat's proposal,theunionshavebeen forced to accept a setofruleswhichpatently anddeliberately violatetheir Constitutional rights. BetweenJuly and December2010Fiatformed twonewcompanies, bothassociatedcompanies, in orderfortheseto buythetwoFiatplantsof Pomigliano d'Arco(Naples)andMirafiori (Turin). Thesetwocompanies willapplya brandnewcollective agreement (which arbitrarily Fiatcalls"contratto di primo livello"first tier agreement, toset freefrompreviousobligationsand reaffirm its autonomyfromthelegal systemin force)and employonlytheworkerswho willtotally and unconditionally adheretoit.Thenewcompanies willnotbe members ofConfindustria, becausethe latter, byStatute, does notacceptas itsmembers businesses thathave not signed the National Collective Agreement. Federmeccanica (subsection of Confindustria) signedthenationalcollective agreement forthemechanic industrial sector just a fewmonths beforeFiat'smoveand theagreementis still validforthree years. Before reviewing thecontents ofthenewagreement , let'sobservehowthesituation that brought toitssignature isbyitself a constitutional blunder: ■ thecompany disregards unilaterally a collective agreement justsignedbyallthe INTERNATIONAL union tights Page 16Volume 18Issue 3201 1 REPORT□ COLLECTIVE BARGAINING INITALY mainunions, andforthisreasonstill valid, andenters intoa newagreement withonly someofthem (FIOM-CGIL refused tobe party tothisagreement); ■ inorder nottoapplytheruleson thetransfer ofundertakings andthespecialprotection they afford toworkers, thelegalinstrument usedisthe"cessionedel contratto" (Employment contract assignment/transfer), whichrequires theprevious acceptanceofthe assignment bytheassignee, inthiscase the individual worker, whoisforced toacceptif he doesn't wanttolose his/her job. In terms ofthecontent oftheagreement, constitutional violations emergefrom a wholeseries ofclauses: ■ theagreement deniesunionrights (tocallan assembly, touse theplantpremises for assembly, tounionpermits, tocontributions from theworkers) totheunionswhohavenot signedtheagreement, unlawfully depriving one ofthemainnational unionsandits members oftheir...