Now the reasons why Matteo Renzi called his job plan with the English term of jobs act and not with the usual Italian terminology of labor market reform should be clear to everyone: in fact, the rules on the labor market and on trade union representation are only part of the overall plan which is much more ambitious and focuses decisively on reducing the tax burden on businesses and simplifying bureaucracy. A correct approach even if, at a first reading of the still generic indications disseminated by the secretariat of the Democratic Party, there is no lack of perplexity both on the extent of the proposed measures which our political-bureaucratic system will hardly be able to implement and implement in a short time, and, for on the other hand, on the shortcomings which, despite the many topics touched upon, are manifested in some crucial points.
Starting with the most positive aspects, it can be said that the inspiring principle of all the measures which decisively focuses on increasing the competitiveness of the production system, totally setting aside the old illusion that it may be the public sector that creates new jobs, truly marks a break with the old ideologies of the left (still confirmed in these days by sen Arnaudo di Sel), but also of many populist right. The insistence on reducing the tax burden on companies is therefore positive, even if to obtain it we rely on new taxes on capital gains and on financial transactions and on the proceeds of an indeterminate spending review. Interesting is the indication of the need for a growth plan for some sectors from tourism to food, from the green economy to technological innovation. Even in this case, however, it is necessary to understand well with which instruments one intends to operate to support these sectors. It is desirable that we do not resort to the same old financial incentives but that we want to understand which changes to the rules and bureaucratic procedures are necessary to facilitate the expansion of these sectors. In general, it is probable that Italy, rather than detailed sectoral plans, needs a complete renewal of the policy of the factors, i.e. to reduce the costs of energy, those of transport and those of services and bureaucracy for all producers, which together with those of money (also from the point of view of the low willingness of the banks to disburse new loans) are the ones that are slowing down Italian competitiveness and therefore preventing a real recovery of growth and therefore of employment.
In this sense, the cost of labor acquires importance, understood not so much as a unit cost but as a clup, ie cost per unit of product in which the trend of productivity weighs heavily. Therefore, it is not a question of cutting the current salaries, even if something must continue to be done especially in the public sector where, as we have seen with the increases in the seniority of teachers, beyond the bad impression made by the Government, it must be noted that various blocks have been circumvented by individual administrations in various ways. To boost productivity and lower the clup, Renzi is betting on some changes to the labor market regulations (simplification and reduction in the number of contracts, a single contract for new hires with increasing protections, the universal unemployment allowance and a review of training ) on the definition by law of the rules of representation of trade unions, and on the dismissal of public managers as happens in the private sector.
Of course the details in all these cases are essential to assess the extent of these innovations. For example, the universal unemployment allowance with the end of the extraordinary redundancy fund and that in derogation, implies a good functioning of the employment centers and truly effective training and not like the current one which above all seems a comfortable refuge for unemployed teachers or for crafty organizers of fake retraining courses. But the central criticism of the measures proposed by Renzi in this field lies in the fact that they do not seem sufficient to give new impetus to labor productivity which, together with the other external factors mentioned above, is a fundamental ingredient for a recovery in the competitiveness of the Italian system.
Look at the reforms of the labor market made by Spain judged positively by international investors and which contributed to a good revival of Spanish exports during 2012. The Spanish reforms are based on two fundamental points: a prevalence given to company contracts over national ones and a reduction in the cost of layoffs for companies with an efficient, but also severe, unemployment protection system. Well, the reforms proposed by Renzi do not move in this direction. Indeed, the single integration contract seems to go in the opposite direction by further reducing the flexibility of the labor market, while the question of company bargaining as the best way to try to recover productivity within companies is totally neglected. It is true that after the rule approved two years ago by Minister Sacconi, more than one glimmer has opened up that it would be up to Confindustria and the trade unions to expand and regulate, but the Government would have the obligation to explicitly declare its general guidelines in favor of this innovation whose effectiveness is beyond any doubt.
Ultimately Renzi's move appears important not only from a purely political point of view to demonstrate that the Democratic Party has the initiative to renew politics and the country in hand, but also from the point of view of the effects of economic policy. Certainly many details need to be well focused and we will have to be very careful of parliamentary ambushes, but overall it is a good step forward compared to the stagnant and malodorous swamp we have been in for too long.
