Bonus Marchionne: how it changes the base salary of the employees FCA – ForexInfo.it

New pay system for employees of Fiat promoted by CEO Sergio Marchionne. The new plan was signed by the unions Fim, Uilm Fismic, UGL and Quadri, but agitates the Fiom.

The leader, Typhoid , claimed that this news is not only

“deletes the role of the union by reducing it to a spectator notary”

but

“pretends participation of workers to the company on whose destinies rather have no chance of speech.”

What Marchionne expects the bonus?

The new pay system, already dubbed bonus Marchionne, provides that employees participate in the profits of the company; their wages will be tied to the results based on productivity targets set out in the business plan for the next four-year period 2015/2018.

What’s new? How to change the basic salaries of employees FCA?

• the one hand there will be a yearly bonus, calculated based on the efficiency results production of various plants , which will be paid at the beginning of the following year and will have an average value equal to 5% of the base salary (percentage may be as high as 7.2% in If brilliant performance);
• the other there will be a variable element linked to the achievement of economic goals for Europe and the Middle East . For the period 2015-2018 the estimated total compensation is equal to 12% of basic pay , apotrà even reach 20% in the case of over performance.

What therefore changes for employees? Marchionne explained that part of the bonus (6% of base salary) will be paid each quarter since 2015.

According to preliminary estimates a skilled worker, with an average level of contract could receive:

• 1,400 euro per year in the three years from 2015 to 2017 and up to 2,800 Euros for 2018, for a total of 7,000 total in the four (in case the results economic conform objectives);
• 1,900 euro per year in the three years from 2015 to 2017 and 5000 Euros in 2018, for a total of 10,700 total over the four (for superior results expectations).

In the event of failure to achieve each goal is provided a ‘ minimum flow of 330 euro per year .

The outlay for FCA will exceed 600 million euro.

The revolution of Marchionne

Although there is a large group that identifies the maneuver Marchionne the desire to weaken the unions, the CEO explained in these terms his “revolution”:

“In recent years Fca has had to accounts with an industrial relations system based on stagnant sterile opposition between capital and labor. Those days are finally over. What we have proposed is a system that recognizes the centrality of our workers to achieve the objectives of the business plan. “

Our employees in Italy, continues,

“will have economic benefits of absolute importance, which will be derived directly from their work and their commitment. Without the contribution and commitment of workers, the objectives of our business plan would be unattainable. For this reason we believe that they should receive significant economic benefits to achieving results. “