IMF-Fiat Council makes recommendations

GENEVA: The IMF-Fiat World Council, which held a two-day meeting in Turin, Italy, in April to discuss the outlook for the auto industry and specifically the situation at Fiat, has concluded that not only is economic globalisation and restructuring of the automotive industry continuing but intensifying competition and widespread production overcapacity are putting increasing pressures on auto manufacturers and their workers. In recent years, a wave of mergers, acquisitions and alliances have swept the industry, with the Fiat Group vehicle companies also caught up in this trend, particularly through the cross-shareholding arrangements between Fiat and General Motors. In view of these developments, the World Council has made the following recommendations:

• An IMF-Fiat World Steering Group (WSG) should be formed.
• The WSG should include representatives from all world regions in which IMF affiliates have members in Fiat Group operations.
• An internet/fax-based communications network for union representatives will be set up within the Fiat Group’s operations.
• WSG priorities should include:
  – ensuring solidarity support in collective bargaining struggles;
  – promoting effective information exchange and cooperation, especially in collective bargaining and union building;
  – working towards the implementation of a code of conduct for Fiat Group operations;
  – assisting in union building and organising projects within the Fiat Group’s operations around the world.