Government and unions opposed on development, employment and Southern Italy

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In September 1998, Italian trade unions drew up a joint unitary platform for negotiations with the government. Cgil, Cisl and Uil claimed that the government's economic policy did not promote development and employment and had not relaunched Southern Italy's economy. Cisl has proposed calling a general strike against the government.

On 8 September 1998, after many months of disappointing meetings (IT9806172N), the main trade union confederations - Cgil, Cisl and Uil- expressed their dissatisfaction with the outcome of their negotiations with the government on development, employment and the South of Italy (Mezzogiorno). The unions' negative evaluation is due to the gap that they perceive between "the capacity for intervention of the government and the dramatic social conditions present in the southern regions, but also the fact that the government did not respect some of the commitments taken in the Employment Pact signed in 1996" (IT9702201F)

The negotiations have been going on for months without positive results and the unions consider the current stage to be conclusive, because the government is soon to present the 1999 budget proposal to the Parliament. The unions have thus developed a joint "unitary platform" that should enable them to carry on the talks and to express a united judgment on their outcomes. The need to reach such a joint assessment is considered particularly urgent because of the different opinions that Cgil, Cisl and Uil have so far expressed on the negotiations.

Cisl seems to be more critical of the government, and its secretary general, Sergio D'Antoni, has proposed more than once calling a general strike against the government's policy. Cgil and Uil prefer to wait for the conclusion of the negotiations before making final evaluations on the results obtained. They say that they are worried about Cisl's proposal because, in their view, a general strike could lead to the fall of the centre-left government led by Prime Minister Romano Prodi. The new platform presented to the government therefore represents an important reference point for a joint assessment of relations between the unions and the government.

The proposals contained in the platform concern all aspects of the negotiations. In order to relaunch employment and economic growth, the unions consider as fundamental the use of taxation and social security contributions as a lever. The joint Cgil/Cisl/Uil platform proposes:

• an additional decrease in labour costs in order to foster entrepreneurial initiatives, through generalised tax cuts that should, within three years, reduce labour costs by 3%;

• a total exemption from social security contributions, for a certain number of years, in respect of every new worker employed by southern companies;

• a relaunch of investment in the South. The unions seek funds in order to implement, during the current year, 40 "territorial pacts" and "area agreements" (IT9704203F) between employers, unions and Mezzogiorno local authorities;

• investment in infrastructure in strategic sectors in order to promote territorial development and production activities (energy networks, transports, protection of the soil and of the environment, urban renewal, etc); and

• experiments in innovative processes for training young people and workers, financed by the government.

Furthermore, the unions consider that modernisation of the public administration is a necessary and prior condition for the relaunch of the economy. They want to streamline and speed up bureaucratic procedures relating to the promotion and support of entrepreneurial activities. They propose the setting up of a "single office" (sportello unico) to deal with all bureaucratic matters concerning the creation and support of new companies, and to offer consulting services on tax, credit, procedures and production activities.

The three union confederations call the attention of the government to the commitments taken through the signature of the tripartite Employment Pact in October 1996. They claim that there have been "delays and contradictions in the implementation of the fundamental aspects of the pact", such as the reform of "social shock absorbers" (IT9802319F) and the fight against clandestine employment. The unions also criticise regional administrations which have not respected the deadlines established by the Employment Pact for the reform of employment services.