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Monday, 19 March 2012 - Tensions rise as Italy labor talks enter home stretch |
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      Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Technology Media Small Business Legal Deals Earnings Social Pulse Business Video The Freeland File Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia India Insight World Video Reuters Investigates Decoder Politics Politics Home Election 2012 Issues 2012 Candidates 2012 Tales from the Trail Political Punchlines Supreme Court Politics Video Tech Technology Home MediaFile Science Tech Video Tech Tonic Social Pulse Opinion Opinion Home Chrystia Freeland John Lloyd Felix Salmon Jack Shafer David Rohde Bernd Debusmann Nader Mousavizadeh Lucy P. 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Sat, Mar 17 2012 Kate celebrates St Patrick's Day with Irish Guards Sat, Mar 17 2012 Tensions rise as Italy labor talks enter home stretch Tweet Share this Email Print Factbox Factbox: Euro zone debt crisis: coming events Thu, Mar 1 2012 Related News Italy condemns botched British raid in Nigeria Fri, Mar 9 2012 UPDATE 5-Air Canada braces for March Break strike Wed, Mar 7 2012 Britain, Netherlands call for EU to focus on growth Mon, Feb 20 2012 Analysis & Opinion An eerie euro zone calm Hollande’s sins more those of omission Related Topics World » Italy » Italian Prime Minister Mario Monti (L) shakes hands with Fiat-Chrysler CEO Sergio Marchionne during a meeting at Chigi palace in Rome March 16, 2012. Credit: Reuters/Stringer By Gavin Jones ROME | Sun Mar 18, 2012 3:12pm EDT ROME (Reuters) - Prime Minister Mario Monti faces an arduous task this week to reconcile the demands of unions and employers and draft a labor reform aimed at boosting Italy's competitiveness and shielding it from the euro zone debt crisis. With a self-imposed deadline to get a deal by the end of this week the signs are not promising, with the largest trade union saying an accord at a key meeting on Tuesday is "impossible," and the biggest employers' lobby warning it will not sign any document that concedes too much to the unions. On Sunday, Monti played down the tensions, saying he still believed a deal could be struck at the meeting he will host on Tuesday. "If the positions weren't still quite far apart it would mean the conclusive meeting had already taken place successfully," he said at a ceremony in Turin. "Instead that (meeting) still has to happen." On Saturday, he had called for all sides to "give some ground" and indicated he was not entirely happy with the proposals drawn up so far by Welfare Minister Elsa Fornero. "On Tuesday I will ask (Fornero) to take even more account of the interests of the future and of young people," he told a conference in Milan. After the deal was done, he said he planned a "roadshow" around Europe to explain why it made Italy a more attractive place to invest, even though the trade unions continue to insist it may not have their backing. Monti has repeatedly stressed, however, that he will push ahead with reform even if he cannot reach agreement with the unions. He has said talks with unions and employers will end this week and that the reform will be presented by the end of March. SCEPTICAL UNIONS The three main union confederations, with varying degrees of vehemence, continue to resist government plans to ease firing restrictions, while small businesses are up in arms over a proposed hike in their contributions to fund welfare provisions. Susanna Camusso, the head of the largest union, the left-wing CGIL, said all sides were still far apart and ruled out a deal as early as Tuesday. The leaders of the smaller CISL and UIL unions also said they were pessimistic. Business groups say they also have serious concerns. Confindustria, the main employers' lobby, has threatened not to sign a deal if Monti gives too much ground to the unions, while the issue also divides the centre-right and centre-left parties that make up his parliamentary majority. Some economists say Monti's reform plans are still too timid to remedy a two-tier labor market that gives too much protection to regular salaried workers and no rights to hundreds of thousands of mostly young people on temporary contracts. Monti has been widely praised for improving market confidence in Italy, which was teetering on the brink of a Greek-style debt crisis when he took office four months ago. However, many analysts say a convincing labor reform is vital to consolidate the upturn in sentiment, as well as to improve Italy's dismal levels of employment, productivity and growth. Only around 57 percent of Italians work, the second lowest proportion in the euro zone after Malta. POSTURING? Some of the hardening of negotiating positions can be put down to posturing in the search for last minute concessions as weeks of talks draw to an end. But divergences between unions and employers on how to fix Italy's "dual" labor market remain real. While the unions stress the need to curb temporary contracts, employers emphasize the need to make it easier to fire workers with regular contracts. The issue is also widening the gap between the conservative and left-leaning parties supporting Monti. "Go On Elsa, be courageous," said Angelino Alfano, the national secretary of former prime minister Silvio Berlusconi's People of Freedom party on Saturday, urging the country's welfare minister to ignore the unions and push ahead with a business-friendly reform. The exhortation is guaranteed to annoy Pierluigi Bersani, the leader of the centre-left Democratic party, who risks losing votes if he withdraws all support from the CGIL, with which his party has strong historic ties. Monti is already drawing criticism from some economists for discarding radical proposals, such as eliminating dozens of different kinds of temporary contracts but reducing the job protection that regular contracts currently afford. Tito Boeri, economics professor at the same Bocconi university in Milan where Monti was rector, said the current reform draft, which leaves all temporary contracts in place, fell far short of what was required. He also said a planned overhaul of welfare benefits would still leave thousands of people with no income support and that it was "absurd" that the new system would only kick in from 2017, meaning it was almost sure to be changed by future governments. (Additional reporting by Lisa Jucca in Milan; Editing by Andrew Osborn) World Italy Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Advertise With Us Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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