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 12:46:42 PM Vendredi, 19 Avril 2024 | 
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Italian industry minister reaffirms auto giant Fiat not to shift production abroad

Italie - Economie et Finances
Fiat will not shift its production abroad, Italian Industry Minister Flavio Zanonato assured on Thursday after the Italian Constitutional Court pressed the automaker to reduce its production or move it out of the country.
The Italian automaker said in a statement released Wednesday that the Constitutional Court's judgment on FIOM-Fiat quarrel could affect the automaker's industrial strategies in Italy, pressing it to downsize the production or move it out of Italy.

Zanonato explained that the auto giant's Chief Executive Sergio Marchionne showed "availability to deal with the issue to keep Fiat on Italy". "The auto industry needs to recover ... and I will fight to keep Fiat in the country," he was quoted as saying in his second attempt since last May to ask Fiat not to leave.

Earlier this month, the court ruled in favor of FIOM, the metalworkers' arm of Italy's biggest trade-union confederation CGIL, after it complained its exclusion from Fiat's union representative body (RSA) for not having signed labor agreements.

At the time, Marchionne asked the Italian government to take the necessary decisions to fill the legislative gap created by the constitutional court's decision, adding that Fiat's labor contracts are based on the rules that have been found unconstitutional.

The frictions between Fiat and FIOM have quite a long history. The carmaker did not assume any of its former FIOM members when it set up a special subsidiary to run the Pomigliano d'Arco plant in 2010, after a dispute with the union over the implementation of flexible labor practices.

Last year, FIOM successfully petitioned for the company to take on 19 of its workers at its Pomigliano factory , but in February Fiat told 18 of the workers to stay at home, pledging they would still receive their salaries, according to Ansa news agency. The union reacted reporting the issue to prosecutors, who started investigations into allegation of discrimination.

It is widely believed that Marchionne could play on the court battle with FIOM to move the automaker's production out of Italy to get tax benefits.