Italy Government to Meet Unions

Italy

March 14, 2007

The Italian government will meet union leaders and employers' association Confindustria March 22 to discuss among other things the pension reform and the the renewal of the labour contract for the public administration, daily Il Sole 24 Ore reported.

'It is good that we start, finally the social parties have been called (to talk). The objective is of a great social pact in which each party has to give something and receive something in return. We are ready,' the daily quoted Raffaele Bonanni, secretary general of the CISL union.

Unions are asking not to hike the retirement age from 57 to 60 in 2008 and the government is willing to consider it as long as it is raised to 62 before 2014, the deadline set in the previous pension reform, with incentive measures to be decided upon with the social parties.

In exchange for anticipating the rise in the retirement age to 62 the government could freeze for a few years talks on the reduction of coefficients with which it calculates pension payments.

'We are willing to face the increase in the retirement age keeping in mind that there is a longer life expectancy, giving incentives to people to keep working, leaving them free to choose,' the daily quoted UIL union secretary general Luigi Angeletti as saying.

The daily said the other hurdle the government has to overcome with unions is the signing of the 2006-2008 labour contract for the public administration, that if not renewed could bring to extended strikes.

yael.schrage@thomson.com