Fiat Panda production to start later than expected in Italy, union says

MILAN (Reuters) -- Fiat S.p.A. will not start making the next Panda model at its Naples plant until spring 2012, later than expected, a union leader said.Media reports have said Europe's top-selling minicar would be built at the Pomigliano plant near Naples in the second half of 2011.Fiom union secretary general Maurizio Landini said a labor deal that Fiat has offered unions indicated that Panda production would start in Pomigliano in spring 2012.Fiat has committed to invest 700 million euros (about $909 million) to upgrade the plant and move production of its next Panda model from Tychy, Poland, even though only 62 percent of workers voted to accept its radical changes to working conditions.Fiom was the only union to reject the deal, saying it breaks workers' rights.Landini said he expected the Pomigliano deal would be extended to other Fiat plants, which might lead to protests from workers.He also said Fiom would not reopen talks with Fiat unless the company revoked the firing of five workers at various plants which happened in the last 10 days.
"We will take legal action against Fiat to reintegrate the workers," Landini said.