The time has come to "sum up" the labor reform. With these words, a press release from Palazzo Chigi announces the convocation of the decisive summit between Prime Minister Mario Monti and the social partners. Appointment for next Tuesday at 15 pm. Also present will be the Minister of Economic Development, Corrado Passera, the Minister of Education, Francesco Profumo, the Deputy Minister of Economy, Vittorio Grilli, and the Undersecretary of the Prime Minister, Antonio Catricalà. But already tomorrow and after in Milan many of the protagonists of the confrontation between the Government and the social partners will have their say at the Confindustria conference "Change Italy: reforms to grow" at which Monti himself will intervene.
The Executive "considers positively the spirit of collaboration and the contribution of ideas offered right from the start by the social partners", but times remain tight: we need to "reach a conclusion, hopefully with a full agreement, by the end of March" .
Meanwhile, the contents of the reform are starting to become clear. Here's what's new after that yesterday's meeting between the Minister of Labour, Elsa Fornero, and the representatives of the trade unions:
ARTICLE 18 VALID ONLY FOR DISCRIMINATIONS
In the intentions of the Government, the much opposed article 18 - which obliges the reinstatement of workers dismissed without just cause - will remain in force only for cases of discrimination. Who gets kicked out of the company for economic reasons will receive an indemnity proportional to the duration of the employment relationship.
About layoffs for disciplinary reasons, however, the Executive intends to follow the German model (and this is the solution most opposed by the unions): the judge will decide whether the individual worker has the right to compensation or reinstatement. In this second case – regardless of how long the lawsuit lasted – the compensation for arrears of salaries cannot exceed 24 months. Pension contributions, on the other hand, will have to be paid in full.
SOCIAL SHOCK ABSORBERS: STARTING FROM 2016-17
Minister Fronero said he was willing to extend the deadline for the transition phase from 2015 to 2016-17. It also looks set to survive mobility allowance, which should accompany the worker once theunemployment benefits.
This will apply to all employees (private and public) with fixed-term contracts. Fornero has defined it as "social insurance for employment" and to be entitled to it, one must have at least two years of insurance seniority and 52 working weeks in the last two years.
The maximum allowance should be around 1.120 euros per month, but with a 15% cut after six months and another 15% after the second semester. The duration of the treatment may vary between 8 and 12 months. Alone for workers over the age of 55 it will be possible to reach 18 months. The contribution rate will be 1,3%, but will rise to 2,7% for precarious workers.
CONTRACTS: FROM APPRENTICESHIP TO RECRUITMENT
With a rate of 1,4% on fixed-term contracts, the precariousness of workers will become more expensive for companies, which will be driven to focus onapprenticeship. The latter form of contract will be strengthened and incentivized: the contributions to be paid will be very low or even zero for the first three years, but dismissal can only come "for just cause" and certified training of workers must be guaranteed. At the end of the three-year period, the crossroads: the company will be able to choose whether to close the relationship with the apprentice or stabilize it with a permanent contract.
Objection: Why should a company stabilize if it can continue to exploit apprentices? Corrective: the right to take on apprentices will only be guaranteed to companies that have hired a certain number of workers on a permanent basis in the recent past. The stabilization will also entail an economic premium for the companies, which will be able to recover the amount paid for the payment of the 1,4% rate on forward contracts.
CO.CO.PRO: MORE CONTRIBUTIONS
Revolution also coming for project contracts, which will be made less convenient with the increase in the INPS contribution rate, so as to bring it closer to that envisaged for employees. Furthermore, the co.co.pro can no longer be canceled prematurely and without just cause by the employer. Furthermore, the very concept of "project" will have to be defined with greater precision.
Attachments: shock absorbers.pdf http://firstonline-data.teleborsa.it/news/files/422.pdf
