Summary
Italian Labor law is so inflexible about layoffs and forget the future of the plant in Imola if it invovles permanent closure. Italy, behind Spain , is one of the most socialistic countries when it come to labor law giving no flexibility whatsoever to industry in manoeuvering during difficult times, that is while Fiat CEO is scanning the globe and is in bed with Chrysler , not only for high cost production , but also for labor inflexibility.
Analysis
CNH and Fiat have doing all they can to have agile and flexible facilities in America and Asia and around the Globe, because of the European, but mainly Italian labor law inflexibility when it comes to layoffs, permanent or temporary. But if the question involves the future of the plant and other CNH and Fiat plants in Italy and the possibility of plant closure, you may as well forget it for the time as it could happen or may not in the next three years. This is a dilemma for European manufacturing companies and their governments must act and enact laws that are business friendly , notwithstanding, workers rights , but workers cannot and should not dictate the future of a company , if not Europe can expect continued migration of manufacturing operations to other parts of the world of European as well as Multinationals, where a company has the flexibility to do the right business decisions without hindrance and handcuffs.and without having the Union representatives taking Board seats. ..until then all CNH and Fiat existing plants in Italy and Europe is doomed during downturns.
George Dorkhom consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
