"Eventful autumn" for Italy

Italian unions expect that the next few months will see increasing conflict with the government on a number of fronts.

Morena Piccinini, responsible for welfare issues in the largest union confederation, CGIL, attacked the fact that the government had finally forced through pension changes by using a vote of confidence.

She promised a "hot September" and a long campaign against the new law, which, among other things, extends the length of time that most Italians must work before getting a full pension.

Savino Pezzotta, general secretary of the second largest confederation, CISL, was less willing to prophesy. But he told the Corriere della Sera newspaper last month: "Either the government changes direction or the autumn will certainly be eventful."

It is not just the pension changes that are the cause of union unhappiness. The government's recent inflation forecast - which under the terms of a 1993 agreement is used as the basis for pay increases - is considered by unions to be unacceptably low. It forecasts a 1.6% increase in 2005, but inflation is currently running at 2.3% (July).

Pezzotta said the forecast was "unrealistic". Giorgio Cremaschi, national secretary of the CGIL metalworkers' federation FIOM, whose negotiations start soon, said: "The government can write whatever number into its forecast but we'll pay no attention in terms of the agreement for the next two years."