Fiat Workers Go on Strike, Stage Demonstration in Rome

5:25 am ET

ROME March 11, 2005; The AP reported that thousands of Fiat SpA workers who fear for their jobs at the struggling Italian group went on strike Friday and held a demonstration in Rome, unions said.

The eight-hour strike was called at Fiat plants across the country. The protest in Rome drew as many as 10,000 people, according to Italian news agency Apcom, and disrupted traffic in the capital's center.

Fiat SpA is trying to restore itself to financial health after years of crisis. Its latest results showed the group's losses narrowed last year, including at its key Fiat Auto carmaking unit.

The company's turnaround plan -- which includes focusing on the core automaking business -- does not involve plant closures. But Fiat regularly uses temporary layoffs to cut production at its plants in line with demand. The workers are protesting that policy, fearing it might eventually lead to job losses.

The workers also demand that Fiat invest more in technology to develop new models, increase its market share, and eventually safeguard its labor force.