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| Tuesday, 16 April, 2002, 20:12 GMT 21:12 UK Italy's thorny labour law ![]() Cofferati's CGIL union is least likely to compromise At the root of the dispute between the Italian Government and the unions is one article - Article 18 - of the country's labour law. This says that any worker in a company of 15 or more employees who is fired can seek immediate recourse to an independent tribunal which will decide if he or she was dismissed with "just cause". If the dismissal was without just cause, the employer must reinstate the worker and pay the full salary since dismissal. The government wants to free certain companies from the restraints Article 18 imposes, giving them greater freedom to hire and fire. More specifically, it wants to suspend the law:
The government says this will encourage companies to hire more staff, and thus reduce unemployment. Under its proposals, workers who are dismissed without just cause - a definition open to interpretation - would get two years' salary compensation but not their job back. Rigid labour market The change would not affect those who are already in full-time jobs.
This is one reason why the unions have taken a stand on Article 18. They see the government's plans to change it as the start of a slippery slope which could see other rights and guarantees gradually eroded. The country's three main unions have a history of poor relations but this issue has united them. Despite six months of negotiations, neither side has shown signs of any willingness to budge. The government, with a comfortable majority in both houses of parliament, has threatened to implement the changes without union agreement. Bargaining chip However, a few days before Tuesday's general strike, Mr Berlusconi held out the prospect of talks, which two of the three big unions have agreed to attend. The government is expected to propose, in return for agreement to its changes to Article 18, the creation of a proper unemployment benefit fund, to provide protection for workers who lose jobs with small and medium-sized companies. A benefit system funded by employers' and employees' contributions exists to help people laid off from large Italian companies, but not the millions who work for smaller employers. Correspondents say at least one of the big unions is likely to be interested in agreeing a deal with the government along these lines. |
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