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12 March 2012

Bloomberg: Monti targets labour revamp


Mr Monti said that Italy has to get away from a dual labour market where some are overly protected while others totally lack protection.

Monti’s labour plan may prove his toughest task since taking office in November, after helping to restore investor confidence in Italy with €20 billion of austerity measures and steps to boost competition and cut red tape. A decade ago, unions mobilised millions of workers to quash a similar labor law overhaul by former Premier, Silvio Berlusconi, after militants murdered two economists who sought to ease rigid firing rules.

Monti’s plan envisages boosting the prospects of young Italians and women by easing firing rules, encouraging the use of apprentice contracts, and increasing jobless benefits. The part of the labour code known as Article 18, which bans firing without just cause and forces employers to rehire and compensate workers deemed unfairly released, is the thorniest issue.

Full article



© Bloomberg


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