Italian local government workers finally settle for 2002-03

Twenty-two months after their previous contract ran out and following four strikes and a demonstration in Rome, Italy's 600,000 local government workers have finally settled.

The agreement signed last month for the two years 2002 and 2003 provides for an average increase of €106 a month, backdated to 1 January 2003. This is equivalent to a 6.16% increase over two years. Authorities in "financial health" pay out a further increase of 0.2%. This compares with the current level of inflation of 2.6% (October 2003).

The agreement also guarantees that terms of the local government contract will continue to apply where services are privatised or out-sourced.