Industry News
Chance of strike at Fiat 500 factory
16th July 2007
CNN, quoting Dow Jones, reports that Fiat is working hard to prevent a strike at its Fiat 500 factory in Poland. Apparently unions are calling for a 100% increase in starting salaries.
Automotive workers in Eastern Europe have come to realise that they are in a strong position – helping to overcome skills shortages and operating at low costs. Consequently margins are much higher on vehicles produced in Eastern European and quality does not suffer. This came to the fore when Volkswagen recently paid a large, double figure, increase in pay to workers at Skoda.
Fiat has met with unions and offered a bonus to cover the launch of the Fiat 500 and a further Christmas bonus. But unions are apparently not in the mood for too many compromises at a time when Fiat’s future depends on the success of the 500 model.
Source: CNN/Dow Jones
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