Italy faces major labour law changes

The Italian centre-left government, now led by Matteo Renzi, seems determined to press ahead with major changes in labour law, despite the opposition of Italy’s largest union confederation, CGIL.

Renzi, who became Italian prime minister in February this year, has committed his government to major reforms which he hopes will boost the country’s lagging economy. Output in Italy dropped by 0.2% in the last quarter and has been falling more or less steadily since 2011.

Changes in employment law are a key part of Renzi’s plans and have been brought together in a “Jobs Act”. This includes plans to reduce the number of short-term contracts as well as extending unemployment benefit.

However, CGIL’s main concern is that it will also remove the so-called Article 18 right of employees to be reinstated if a court rules they have been unfairly dismissed. Defence of Article 18 was at the heart of CGIL’s major national demonstration in Rome on 25 October. CGIL general secretary Susanna Camusso hopes that continued pressure, including a general strike, will turn the tide.

The Jobs Act was approved as a framework measure in the Italian senate last month when Renzi made its approval a vote of confidence in the government.

However, many details are still to be worked out, so the final form of the changes remains to be decided.