Pensions: Italy faces general strike

Despite their ongoing differences, Italy's three main union confederations have threatened a general strike unless the government of Silvio Berlusconi changes course on pensions by 8 June.

The government is proposing legislation which includes a number of changes which are of great concern to the unions. These include: lower employer contributions for new employees, who would then get lower pensions; the obligatory use of the lump sums, which employees receive in Italy at the end of their contracts, for pensions; and the plan to give general pension funds the same tax benefits as occupational funds, even though they are not subject to the same control.

In addition there are also suggestions within the government that the package should be strengthened by cutting pensions for those who retire before 65 and increasing them for those who work longer.

For the unions this is unacceptable. Pierpaolo Baretta of the generally more moderate confederation, CISL, said that, if the government did not change course", there will inevitably be a recourse to a strike".

As in France, the union threat of a general strike on the issue has an echo of the past. In 1994 a general strike and a mass demonstration on pensions led to the fall of the first Berlusconi government.