Fiat talks with unions reach a crucial point as deadline approaches

The talks between Fiat S.p.A. and unions about plans to produce Jeep and Alfa Romeo models at its Mirafiori plant in Turin are at a crucial stage. What Fiat plans for Mirafiori is to set up a joint venture with Chrysler, in which Fiat has a 20% stake, to build up to 280,000 vehicles a year. It also plans to launch new Jeep and Alfa cars and SUV models by the fourth quarter of 2012. There has to be a decision soon as Mirafiori is slated to halt production of all models at the plant except for the Alfa Romeo Mito.

Talks had stalled over the issue on more flexible shift working. The company has imposed a Christmas deadline to determine if it will stick to its plan to invest over 1 billion euros ($1.3 billion) in Mirafiori. Unions are divided among those who want to sign the deal, the left-leaning Fiom union who oppose it, and those who want more time.

During a meeting between Fiat and union representatives last Monday, Luigi Angeletti, secretary general of moderate trade union Uil, said that they are “not against” a separate contract for the car sector but drafting requires some time and there has to be deal reached by the end of the week. [via autonews - sub. required]