Italy approves May Day labour package amid union criticism

MAY 3, 2023
By EU Reporter Correspondent

Italy's conservative government approved on Monday measures to increase job creation and worker pay. This was despite the hostile reaction of unions and opposition groups over welfare cuts that accompanied them and looser rules for short-term contracts.

Giorgia Mello has made it easier for companies to offer contracts of 12 to 24 months. She also reduced the "citizen's wage" scheme to combat poverty, in order to encourage people with a good education to find work.

Rome has also allocated around €3 billion, but only to those who earn less than €35,000 per year.

Meloni, in a video message, said that tax cuts could amount to as much as 100 euros a month.

Meloni, a former Italian Prime Minister who was elected partly on the promise to make Italy more friendly to business, said: "I am proud that the government chose to celebrate May 1, International Workers' Day (International Workers' Day), with facts rather than words."

Rome has waived taxes on fringe benefits to employees with children up to a maximum amount of 3,000 Euros per employee, as part of government commitments to combat a birth crisis.

'CITIZEN WAGE' SLIMMED DOWN

Maurizio landini, the head of Italy's main union CGIL criticized Meloni’s package. He said that wages in Italy are low because of high taxes, but also due to an unprecedented level of "job insecurity."

In an effort to relax labour market regulations, the government has increased the use of "job vouchers", a form of extreme flexibility in the labour market that is popular with businesses. However, critics claim this leaves plenty of room for abuse.

Spain, the other major economy in southern Europe, has taken a opposing path from labour reforms. A centre-left government is pushing legislation to increase permanent contracts for young workers.

According to a draft, the Italian government has also decided to cut subsidies for poor families aged 18-59 to €350 on a monthly average, down from a current amount of around €550 per family. The cuts will only be made to a maximum of 12 months, and are subject to participation in training programs.

Families with children, pensioners, or disabled persons will receive a slightly higher payment of 500 euros per month for up to 30 months.

Meloni has introduced an additional tax break for entrepreneurs who employ young people who do not work or study. This status in Italy is at record levels compared with other EU nations.