Italian unions keep up pressure on pensions

The Italian government and the three major union confederations were meeting as Labour Research went to press to discuss the government's proposals on pensions. But it already seems clear that, although the government will step back from its original proposals, the unions are determined to keep up the pressure.

The government has indicated that it will make concessions on the use of the lump sum, the so-called Tfr, which Italian workers get at the end of their employment.

The Tfr will now not necessarily be used just to fund occupational pensions as previously proposed. And employers' pensions contributions will not be cut for new employees, despite the protests of the employers' association, Confindustria.

On the central issue of the retirement age, the position is much less clear, partly because there are differences in the coalition led by Silvio Berlusconi. The government is unlikely to proceed with its initial proposal - to require 40 years of contributions rather than 35 for a full pension - but some increase in the effective retirement age seems probable.

The government's concessions follow continuing union pressure on the issue, including a general strike in October and a massive march in December 2003.