ATESSA, Italy (Reuters) -- Fiat CEO Sergio Marchionne said the automaker would put investments in new models on hold until there is clarity over the impact of a court ruling that cast doubt on the company's labor relations in Italy.
Italy's constitutional court ruled last week that a clause in the country's labor law from the 1970s that allows Fiat to bar the Fiom metalworkers' union from representing workers on its factory floor was unconstitutional.
"Before taking any further initiatives in Italy, we need a clear legal and normative framework," Marchionne said today.
He was speaking to workers at the carmaker's Sevelsud plant in central Italy.
Marchionne said he was open to meeting with Fiom leader Maurizio Landini to discuss what measures could be taken, based on a common understanding that Fiat's 2011 labor contract would not be revised.
Fiat has invested in several of its Italian factories in exchange for concessions from its labor unions for giving more flexible work conditions.
Fiat's investments are crucial to Italy's economy, which has been in recession for two years and has record unemployment.
Fiat has also promised billions of euros in new investments to build Jeeps and Alfa Romeos for export to the United States and elsewhere in Italy.
Fiat and its sister company Fiat Industrial have invested 23.5 billion euros ($30.23 billion) in Italy from 2004 to 2012, Marchionne said.