The production of Fiat 500L is again stopped at the Kragujevac factory of Fiat Chrysler Automobili (FCA), following the earlier production break due to the Italian holiday of Ferragosto. The latest stoppage will last until Monday, 3rd September.
The current standstill in production is due to the usual harmonization of production with the market demands, since Fiat, like other major global companies, does not produce cars to stock.
The Independent Trade Union of FCA Serbia said yesterday that all of the company’s, apart from those working in security, financial sector and marketing, will be on paid leave by the end of this week, during which each working day, pursuant to the Collective Agreement, will be paid 65 percent of the average monthly earnings over the past twelve months.
Want to open a company in Serbia? Click here!
The employees and heads of both Fiat’s trade unions – Independent Trade Union and UGS Nezavisnost – consider these productions stoppages reality, although they do not approve of them. However, they are much more concerned about the fact that 29th September is getting closer since this is the date when the ten-year agreement between the state of Serbia and Fiat on the formation of a joint car company expires. Currently, there is no information from either side about the destiny of that agreement. They assume that the contract between the state and the Fiat will last until, as unofficially stated, one party withdraws from it, but they would also like to hear officially that this is the right assumption.
The trade unions would also like to know whether Fiat’s factory in Kragujevac will be entitled to state tax reliefs and other benefits even after 29th September.
They are also interested in finding out what are the plans of the Fiat Chrysler Group (FCA) in the factory in Kragujevac, which has capacity for almost three times bigger production compared to the current one. They are also worried about the recent change in the management of the FCA Group, caused by the sudden death of the former CEO of this multinational company, Sergio Marchionne, and the subsequent withdrawal of his deputy Alfredo Altavilla, who, among other things, was also responsible for the Kragujevac factory.
Before the Ferragosto production stoppage, the heads of the Independent Trade Union before asked the Serbian authorities for information about the position of the Serbian Government considering the contract with Fiat. However, there has been no response from the Government as yet, which is the reason why the employees are getting increasingly worried.
This post is also available in: Italiano