Revision of contracts, limitation of article 18, simplification and strengthening of social safety nets. These are the three pillars on which the new labor reform is based. And while the government accelerates approval - green light expected between 21 and 23 March – the possibility of an agreement with the unions is receding. From today the Minister of Labour, Elsa Fornero, begins a rush of bilateral meetings on the most controversial chapter of the reform, outgoing flexibility. But the decisive turning point in the negotiations will probably be next Monday, when the representatives of the social partners will meet Prime Minister Mario Monti at Palazzo Chigi.
As for resources to find for the new social shock absorbers, there is still no certainty. “I can't tell you where the resources will be found, the Government is committed to looking for them”, Fornero said at the end of yesterday's last meeting. In any case, the funds will not be taken away “from the other chapters of welfare. The government undertakes to find resources outside the chapters of social expenditure".
But in the afternoon Fornero launched the challenge to the unions: "It is it is clear that if there is a more advanced agreement, I am committed to finding more adequate resources and making sure that this mechanism of social safety nets and this job market work quite well”. But it is also clearthat if one begins by saying no, why should we put a handful of billions there and then say: do you say yes? It would be very difficult for me to understand the sindacactus Italian if you don't agree with a reform that works for the inclusion and universality of social shock absorbers".
Finally, the times: the new shock absorbers will start this year and will be fully operational in 2015, not in 2017 as was said in the last meeting. An acceleration that the secretary of the CGIL, Susanna Camusso, considers "a step backwards", because "in the short term, during the crisis, it translates into a reduction in coverage".
Now let's see what reform scheme the Executive is focusing on:
SOCIAL SHOCK ABSORBERS
1) Extraordinary redundancy fund. it can no longer be granted in the event of closure of the company, but only in the event of restructuring.
2) Ordinary redundancy fund. It survives in its current form.
3) Unemployment benefit. It replaces all allowances and applies 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. It should start in 2015.
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 can vary between 12 months. Only for workers over the age of 58 is it possible to reach 18 months. The contribution rate is 1,3%, but rises to 2,7% for precarious workers.
CONTRACTS
With a rate of 1,4% on fixed-term contracts, the precariousness of workers becomes more expensive for companies, which are driven to focus onapprenticeship. The latter form of contract is 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 the workers must be guaranteed. At the end of the three-year period, a crossroads is reached: the company can choose whether to end the relationship with the apprentice or stabilize it with a permanent contract.
ARTICLE 18
As we know it today – right to reinstatement for the worker dismissed without just cause – Article 18 survives only for dismissals based on serious discrimination. When the employment relationship is interrupted for reasons economic o disciplinary, the company (by decision of a judge or arbitrator) is simply required to pay an indemnity proportional to length of service. There is discussion about new possible protections for those who work in companies with fewer than 15 employees, on which article 18 is not valid today.
