“The reform represents a commitment of historical importance, which leads to a turning point“. This was stated by Prime Minister Mario Monti in a joint press conference at Palazzo Chigi with Welfare Minister Elsa Fornero on the new labor reform. “The prospect of growth characterizes every aspect of the reform – continued the Professor -. We intend to create an inclusive and dynamic labor market capable of contributing to job creation. It is a reform that intends to contribute to social and economic growth and the reduction of the unemployment rate. It makes it possible to counter the dualism of the Italian labor market, limiting precariousness and for the weakest categories and favoring good flexibility".
The professor last night he found an agreement with the leaders of the parties majority on the most controversial changes to article 18 (in particular, the reinstatement for economic dismissals deemed invalid by the judge). This morning Monti, together with Fornereo, met the President of the Republic, Giorgio Napolitano. Monti then quoted the president of the ECB, Mario Draghi, who spoke of countries characterized by labor markets divided between guaranteed and young people in difficulty. “Our reform – the Professor then said – aims at greater efficiency of the system: businesses will be able to find the best production configurations. But it also aims at equity: avoiding excessive protection for those included in the labor market which penalizes the young and the weak”.
The government also puts in place “a modernization of the safety net, which goes towards universality, making social safety nets more efficient”. In this way we intend to address problems such as "the scarcity of investments and the rigidity of the market", concluded Monti. “Flexibility emerges from this reform in a balanced and serene way – added the premier -. Outgoing flexibility has also been significantly increased, but safeguarding the need for the labor judge not to enter too much into the assessments that are due to the employers and on the other hand dutifully protect the workers. An attempt has also been made to combat forms of precariousness as regards entry flexibility”.
“It is obvious that the debate with the social partners also involves aspects of conflict, but we believe we have reached a point of equilibrium and we believe that in the future we will have a much more favorable Italian context. We not only want Italy to emerge from a phase of financial crisis, but also to emerge from a 10-12 year phase in which our country has grown at half the speed compared to the average of developed countries".
After the Premier, Minister Fornero took the floor, who explained the key points of the new reform, the second she signed after that of pensions. Between the two interventions, however, "there was a substantial difference in the methodology of intervention - the minister specified - the first was dictated by the seriousness of the financial crisis, which imposed extremely rapid times". On the job, "we didn't choose the path of consultation (actually Fornero had used the word 'concertation' here, but it was corrected by Monti, ed), but of dialogue with the social partners, with whom we discussed for six months".
"We we want a more productive market – continued Fornero -. Productivity comes from human capital, which in turn comes from training. But employment relationships also have to do with productivity. The assumption of stability is a virtuous assumption to encourage training and productivity on the part of the worker. And the entrepreneur has an incentive to associate wages with productivity. A market in which the worker is then thrown away does not encourage productivity".
The pillars of the Ddl are the following: contracts, outgoing flexibility, worker protection, special ritual for labor disputes, social safety nets, active policies and employment services.
CONTRACTS
“The goal is to do some permanent employee contract the dominant one – Fornero reiterated – which begins with the apprenticeship phase, to which we intend to give emphasis. On this yes, we follow the German model. Furthermore, apprentices can only be hired from those companies that have hired at least 50% of apprentices in the past. For the first three years, however, we will be satisfied with 30%. In the past, flexibility was not used well and created a dual labor market: the protected and the excluded”.
Il fixed-term contract “it has been maintained, because it doesn't necessarily mean bad flexibility – the minister explained -. We have eliminated the so-called 'causalone' for the first fixed-term contract, and it is an important liberalisation. But the fixed-term contract pays a little more than the permanent ones, a greater contribution which will partly go to finance ASPI. However, there is a bonus for stabilization: the repayment of that contribution for an amount equal to six months”.
Il insertion contract “basically disappears”. Disadvantaged workers, i.e. young people and women, "will enjoy a very small contribution relief for one year".
SOCIAL SHOCK ABSORBERS
Fornero argues that on this terrain “we are moving towards a form of universalism: the shock absorbers must concern all workers who lose their jobs. We got resources and created the Aspi, a social insurance that concerns every worker. The current configuration is relatively generous, not in amount but in duration, and concerns a potential audience of just four million workers out of 12. ASPI is not inferior to current mobility in terms of amount, but in terms of duration, in order to encourage the reintegration. There is also ua mini-Aspi for young people".
OUTPUT FLEXIBILITY: THE "UNPACKING OF 18"
Finally, the most awaited chapter. “We no longer lock down the worker to that particular workplace – said Fornero -. And this concerns the modification of article 18. All economies that have a low structural unemployment rate have much more relevant entry and exit flows. Article 18 was a great victory, but the world has changed. The goal is to encourage foreign investment in Italy and limit the outflow of Italian capital”.
To achieve this goal, the government has established “the unpacking of article 18 – explained Fornero -. We think that a settlement can also be reached, conciliation procedures: not all dismissals, which we hope are few, have to end up in front of the judge".
Regarding discriminatory dismissals, “we haven't touched anything – underlined the minister -. On the disciplinary ones, the judge can choose between reinstatement and compensation. Then let's talk about the economic causes. The business activity is not syndicated by the judge, but our Ddl provides that in the case of manifest non-existence the judge can decide the reinstatement, in the other cases instead the indemnity prevails".
If, on the other hand, the judge ascertains that economic reasons were used to disguise a discriminatory or disciplinary dismissal, the case falls into the respective category.
