By on October 17, 2013

fimuaw

The UAW has enlisted the help of the German IG Metall labor union in its effort to organize Volkswagen’s U.S. operations. Now Fiat has apparently gotten the union that represents its Italian workers, Fim Cisl, to reach out to UAW officials in an effort to resolve the issue of just how much Fiat is going to pay the UAW’s retiree health benefits trust for the 41.5% of Chrysler the VEBA owns. Fiat and Chrysler CEO Sergio Marchionne wants to merge the two companies and that can’t be done without buying that stock. Fiat and the VEBA sides are more than a billion dollars apart.

Marchionne would like to avoid an initial public offering of Chrysler stock, which would complicate his merger plans. Per the VEBA’s rights, the process for an IPO has been started. Also no doubt the Fiat CEO would like to come to an agreed price before a trial for the valuation of some of the VEBA’s shares begins next September.

In an interview with the Automotive News, Ferdinando Uliano, who is in charge of relations with Fiat for Fim Cisl, said, “We are concerned that a Chrysler initial public offering would harm a combination of the two carmakers. We’ll tell the UAW that only a merger of Fiat and Chrysler would grant a positive future for both companies’ workers.”

The Fim Cisl delegation plans to meet with UAW president Bob King and other UAW leaders in Detroit.

Merging the two companies would give Marchionne access to Chrysler’s $12 billion in cash to help finance Fiat’s turnaround in Europe. The Italian automaker is currently not profitable and it is losing market share in its home market of Europe. Fiat’s September sales in Europe were off by 3.4% as the overall market was up 5.5%.

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5 Comments on “Italian Autoworkers’ Union, Fim Cisl, Sends Delegation to Detroit to Lobby UAW on Chrysler Fiat Merger...”


  • avatar
    Big Al from Oz

    Well.

    Was I correct or was I correct.

  • avatar
    billfrombuckhead

    It was inevitable that labor unions go global. Imagine how much power Chinese labor unions could have over labor markets?

  • avatar
    Lou_BC

    @Big Al from Oz – don’t mention the chicken tax, tariffs or union conspiracies. We wouldn’t want Mikey from Canada or Denver or California giving us a tongue lashing.

    I do recall him slagging diesels for their need to be “plugged in”
    (block heaters)all of the time. That doesn’t sound like something a guy from sunny southern California would say. LOL

    • 0 avatar
      Big Al from Oz

      @Lou
      He may have thought he was in LA? or I think he stated once Arkansas?

      He also owns a number of pickups and brand new V10 F-650s, been to Espange over 36 times and think there’s a full size pickup market there. The M 5 was created to counter the SVT Mustang and on and on.

      Now he’s an authority on the CAW.

      The plugging in of the diesel was incorrect. The vehicle was actually an EV.

      He put the diesel in the window washer :)

  • avatar
    Lou_BC

    @Big Al – funny, did you notice that he popped up on the thread about Canadian tariffs and the EU?
    odd how he always shows up on diesel threads and tariff threads.


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