Identifier
Created
Classification
Origin
03ROME294
2003-01-25 12:48:00
UNCLASSIFIED
Embassy Rome
Cable title:
CONSTITUTIONAL COURT APPROVES REFERENDUM ON KEY
how-toThis record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 02 ROME 000294
SIPDIS
DOL FOR ILAB/BRUMFIELD
DEPARTMENT FOR DRL/IL AND EUR/WE
E.O. 12958: N/A
TAGS: ELAB PGOV PGOV IT IT ELAB
SUBJECT: CONSTITUTIONAL COURT APPROVES REFERENDUM ON KEY
UNCLASSIFIED
PAGE 02 ROME 00294 01 OF 02 251318Z
LABOR LAW PROVISION
UNCLAS SECTION 01 OF 02 ROME 000294
SIPDIS
DOL FOR ILAB/BRUMFIELD
DEPARTMENT FOR DRL/IL AND EUR/WE
E.O. 12958: N/A
TAGS: ELAB PGOV PGOV IT IT ELAB
SUBJECT: CONSTITUTIONAL COURT APPROVES REFERENDUM ON KEY
UNCLASSIFIED
PAGE 02 ROME 00294 01 OF 02 251318Z
LABOR LAW PROVISION
1. SUMMARY: LABOR LAW REFORM HAS BEEN A TOP CAMPAIGN
ISSUE AND A MAJOR POLITICAL PRIORITY FOR ITALIAN PRIME
MINISTER BERLUSCONI, CONSUMING MUCH OF HIS AND THE GOI'S
TIME THROUGH 2002. ALTHOUGH THE GOVERNMENT MADE A DEAL
WITH TWO OF ITALY'S THREE MAJOR TRADE UNION
CONFEDERATIONS, REFORM LEGISLATION HAS NOT YET BEEN
CONSIDERED IN PARLIAMENT. NOW, THE SMALL, LEFT-WING
COMMUNIST RENEWAL PARTY HAS PROPOSED A REFERENDUM THAT
WOULD MOVE IN THE OPPOSITE DIRECTION. PARADOXICALLY,
APPROVAL BY THE CONSTITUTIONAL COURT OF THE REFERENDUM
PROPOSAL MAY PAVE THE WAY FOR GOI EFFORTS TO REFORM
ITALIAN LABOR LAW. THE REFERENDUM PROPOSAL, LIKE GOI
LABOR REFORM ITSELF, HAS AGAIN BROUGHT CENTER-LEFT
DIVISIONS TO THE FORE. END SUMMARY.
2. THE CONSTITUTIONAL COURT HAS APPROVED A REQUEST FOR A
REFERENDUM MADE BY THE LEFTIST COMMUNIST RENEWAL (RC)
PARTY TO MODIFY A KEY PROVISION OF NATIONAL LABOR LAW.
IF PASSED, THE REFERENDUM WOULD REINFORCE EXISTING LABOR
MARKET RIGIDITIES AND COMPLICATE FURTHER PM BERLUSCONI'S
EFFORTS TO INTRODUCE MORE FLEXIBILITY INTO ITALIAN LABOR
MARKETS. IF AT LEAST 50 PERCENT OF ELECTORS TAKE PART IN
THE REFERENDUM AND THE MAJORITY OF THEM APPROVE IT, THE
REFERENDUM PROPOSAL WOULD PASS. THE GOI WILL CHOOSE A
SUNDAY BETWEEN APRIL 15 AND JUNE 15 FOR THE REFERENDUM
VOTE. ALTHOUGH THE LEGAL PROVISION IN QUESTION WAS A
PRINCIPAL FOCAL POINT FOR POLITICAL CONFLICT IN 2002, FEW
APPEAR INTERESTED IN THE REMATCH BEING PROMOTED BY THE
RC. INSTEAD, WE EXPECT EFFORTS, AND DEBATE, TO FOCUS ON
UNCLASSIFIED
PAGE 03 ROME 00294 01 OF 02 251318Z
NEW LEGISLATION TO MODIFY THE PROVISION. PASSAGE OF A
NEW LAW WOULD ANNUL A REFERENDUM FEW ARE INTERESTED IN
CONTESTING.
3. THE PROVISION, ARTICLE 18 OF THE WORKERS' STATUTE,
GOVERNS WORKERS' ENTITLEMENT TO COMPENSATION WHEN
IMPROPERLY FIRED. CURRENT LAW ALLOWS EMPLOYERS AT SMALL
FIRMS (FEWER THAN 15 EMPLOYEES) TO CHOOSE WHETHER TO
REINSTATE OR COMPENSATE THOSE EMPLOYEES FOUND TO HAVE
BEEN IMPROPERLY FIRED; AT LARGER ENTERPRISES, THE CHOICE
REMAINS WITH THE WORKER. UNDER THE TERMS OF THE PROPOSED
REFERENDUM, THIS 15-EMPLOYEE THRESHOLD WOULD BE
ABOLISHED, EFFECTIVELY EXTENDING TO ALL EMPLOYEES THE
RIGHT ENJOYED BY WORKERS AT LARGER FIRMS TO CHOOSE THE
FORM OF COMPENSATION.
4. IN 2001, THE BERLUSCONI GOVERNMENT PRESENTED REFORM
OF ARTICLE 18 AS A CORNERSTONE OF EMPLOYMENT POLICIES
AIMED AT INTRODUCING MORE FLEXIBILITY INTO THE LABOR
MARKET. THE THREE MAIN TRADE UNION CONFEDERATIONS
EXPRESSED CONCERNS OVER THE PACKAGE PROPOSED AND
ORGANIZED A JOINT GENERAL STRIKE IN APRIL. AFTER THE
STRIKE, TWO OF THE CONFEDERATIONS, CISL AND UIL, RESUMED
NEGOTIATION WITH THE MINISTER OF LABOR AND EVENTUALLY
REACHED AGREEMENT FOR A FUTURE AMENDMENT OF ARTICLE 18.
(UNDER THE AGREEMENT, THE GOI WOULD HAVE PROPOSED THAT,
ON A TRIAL BASIS, COMPANIES CROSSING THE THRESHOLD OF 15
WORKERS BE EXEMPT FROM THE PROVISIONS OF ARTICLE 18.)
BUT CGIL, THE LARGEST AND FURTHEST LEFT OF THE
CONFEDERATIONS, CONSIDERED ARTICLE 18 A KEY SYMBOLIC
RIGHT THAT COULD NOT BE MODIFIED. THE ENSUING CONFLICT
UNCLASSIFIED
PAGE 04 ROME 00294 01 OF 02 251318Z
OVER THE PROVISION SPLIT BOTH THE CENTER-LEFT PARTIES AND
THE TRADE UNION CONFEDERATIONS. SERGIO COFFERATI, THE
FORMER SECRETARY GENERAL OF CGIL, USED THE DISAGREEMENT
OVER ARTICLE 18 TO GALVANIZE OPPOSITION TO THE BERLUSCONI
GOVERNMENT, BREAKING THE COMMON TRADE UNION STAND. AT
THE SAME TIME, COMMUNIST RENEWAL TOOK ADVANTAGE OF THE
POLITICAL DEBATE TO GATHER SIGNATURES FOR A REFERENDUM
DESIGNED TO EXTEND ARTICLE 18 TO ALL COMPANIES.
5. THE CONSTITUTIONAL COURT'S RECENT RULING AND A NEW
GOI APPROACH HAVE TRANSFORMED THE REFORM OF ARTICLE 18
FROM A SYMBOLIC REFORM TO A PRAGMATIC ISSUE TO BE TACKLED
BY THE PARLIAMENT. EVEN COFFERATI RECENTLY ACKNOWLEDGED
THAT HOLDING THE REFERENDUM TODAY COULD LEAD TO A DEEP
SPLIT IN THE ALREADY-FRACTURED CENTER-LEFT. 1IN THE
DEMOCRATS OF THE LEFT (DS),AS WELL AS IN CGIL, THERE ARE
DIFFERENT OPINIONS ON THE EXTENSION OF ARTICLE 18. PIERO
FASSINO, THE LEADER OF DS, ANNOUNCED THAT HE WOULD
PROPOSE SOON A REVISION OF THE LAW THAT, IF APPROVED,
WOULD AUTOMATICALLY CANCEL THE REFERENDUM. THE STRATEGY
OF THE DAISY PARTY (PART OF THE OLIVE TREE COALITION WITH
DS),HOWEVER, WOULD BE TO HOLD THE REFERENDUM AND
ENCOURAGE ITS SUPPORTERS TO VOTE NO, IN ORDER TO
HIGHLIGHT ITS INTENTION NOT TO INTRODUCE NEW LEGAL
RESTRICTIONS FOR SMALL COMPANIES AND, CONSEQUENTLY, ITS
DISTINCTION FROM THE RADICAL LEFT, LIKE RC. THE
UNCLASSIFIED
UNCLASSIFIED PTQ4448
PAGE 01 ROME 00294 02 OF 02 251318Z
ACTION DRL-02
INFO LOG-00 NP-00 AID-00 CEA-01 CIAE-00 COME-00 CTME-00
DODE-00 ITCE-00 ANHR-00 SRPP-00 DS-00 EB-00 EXME-00
EUR-00 E-00 UTED-00 VC-00 FRB-00 H-01 TEDE-00
INR-00 ITC-01 LAB-01 L-00 VCE-00 AC-01 NSAE-00
NSCE-00 OMB-01 OPIC-01 PA-00 PM-00 PRS-00 ACE-00
P-00 SCT-00 SP-00 SSO-00 STR-00 TEST-00 TRSE-00
USIE-00 PMB-00 DSCC-00 PRM-00 G-00 NFAT-00 SAS-00
/009W
-------------- 2B8838 251319Z /38
P 251248Z JAN 03
FM AMEMBASSY ROME
TO SECSTATE WASHDC PRIORITY 7816
INFO DEPT OF LABOR WASHDC
EU MEMBER STATES COLLECTIVE
AMCONSUL MILAN
AMCONSUL FLORENCE
AMCONSUL NAPLES
UNCLAS SECTION 02 OF 02 ROME 000294
SIPDIS
DOL FOR ILAB/BRUMFIELD
DEPARTMENT FOR DRL/IL AND EUR/WE
E.O. 12958: N/A
TAGS: ELAB PGOV PGOV IT IT ELAB
SUBJECT: CONSTITUTIONAL COURT APPROVES REFERENDUM ON KEY
UNCLASSIFIED
PAGE 02 ROME 00294 02 OF 02 251318Z
LABOR LAW PROVISION
GOVERNMENT IS ALSO IN FAVOR OF THE REFERENDUM, SINCE IT
EXPECTS THAT THE MAJORITY OF ITALIANS WOULD VOTE AGAINST
THE PROPOSED REFORM AND THAT THE REFERENDUM COULD THUS
HIGHLIGHT AND EXACERBATE THE CENTER-LEFT'S INTERNAL
DISARRAY.
6. COMMENT: ALTHOUGH LARGELY UNWELCOME TO THE MORE
MAINSTREAM PARTIES ON THE LEFT, THE RC'S REFERENDUM
PROPOSAL ULTIMATELY MAY PROVE TO BE THE PUSH NEEDED TO
GET SERIOUS WORK STARTED ON LABOR MARKET REFORM AND A NEW
UNEMPLOYMENT BENEFITS SCHEME PROPOSED BY THE GOI.
SEMBLER
_______________________________
1THE REFORM OF ART. 18 INITIALLY PROPOSED BY THE GOI WAS
OPPOSED BY THE DAISY PARTY, THE DS, RC, CGIL, CISL AND
UIL. SO: IT "GAVE NEW STRENGTH TO THE CENTER-LEFT" AND
UNITY. TODAY IT SEEMS THAT THE REFERENDUM WOULD SPLIT THE
OPPOSITION: RC, A COMPONENT OF DS AND A COMPONENT OF CGIL
WOULD VOTE YES; THE DAISY, A COMPONENT OF DS AND A
COMPONENT OF CGIL WOULD VOTE NO. THE STATEMENT OF
COFFERATI HELPS UNDERSTANDING THE DIFFERENT POLITICAL
MEANINGS OF THE REFORMS OF ART. 18.
UNCLASSIFIED
>
2003ROME00294 - Classification: UNCLASSIFIED
SIPDIS
DOL FOR ILAB/BRUMFIELD
DEPARTMENT FOR DRL/IL AND EUR/WE
E.O. 12958: N/A
TAGS: ELAB PGOV PGOV IT IT ELAB
SUBJECT: CONSTITUTIONAL COURT APPROVES REFERENDUM ON KEY
UNCLASSIFIED
PAGE 02 ROME 00294 01 OF 02 251318Z
LABOR LAW PROVISION
1. SUMMARY: LABOR LAW REFORM HAS BEEN A TOP CAMPAIGN
ISSUE AND A MAJOR POLITICAL PRIORITY FOR ITALIAN PRIME
MINISTER BERLUSCONI, CONSUMING MUCH OF HIS AND THE GOI'S
TIME THROUGH 2002. ALTHOUGH THE GOVERNMENT MADE A DEAL
WITH TWO OF ITALY'S THREE MAJOR TRADE UNION
CONFEDERATIONS, REFORM LEGISLATION HAS NOT YET BEEN
CONSIDERED IN PARLIAMENT. NOW, THE SMALL, LEFT-WING
COMMUNIST RENEWAL PARTY HAS PROPOSED A REFERENDUM THAT
WOULD MOVE IN THE OPPOSITE DIRECTION. PARADOXICALLY,
APPROVAL BY THE CONSTITUTIONAL COURT OF THE REFERENDUM
PROPOSAL MAY PAVE THE WAY FOR GOI EFFORTS TO REFORM
ITALIAN LABOR LAW. THE REFERENDUM PROPOSAL, LIKE GOI
LABOR REFORM ITSELF, HAS AGAIN BROUGHT CENTER-LEFT
DIVISIONS TO THE FORE. END SUMMARY.
2. THE CONSTITUTIONAL COURT HAS APPROVED A REQUEST FOR A
REFERENDUM MADE BY THE LEFTIST COMMUNIST RENEWAL (RC)
PARTY TO MODIFY A KEY PROVISION OF NATIONAL LABOR LAW.
IF PASSED, THE REFERENDUM WOULD REINFORCE EXISTING LABOR
MARKET RIGIDITIES AND COMPLICATE FURTHER PM BERLUSCONI'S
EFFORTS TO INTRODUCE MORE FLEXIBILITY INTO ITALIAN LABOR
MARKETS. IF AT LEAST 50 PERCENT OF ELECTORS TAKE PART IN
THE REFERENDUM AND THE MAJORITY OF THEM APPROVE IT, THE
REFERENDUM PROPOSAL WOULD PASS. THE GOI WILL CHOOSE A
SUNDAY BETWEEN APRIL 15 AND JUNE 15 FOR THE REFERENDUM
VOTE. ALTHOUGH THE LEGAL PROVISION IN QUESTION WAS A
PRINCIPAL FOCAL POINT FOR POLITICAL CONFLICT IN 2002, FEW
APPEAR INTERESTED IN THE REMATCH BEING PROMOTED BY THE
RC. INSTEAD, WE EXPECT EFFORTS, AND DEBATE, TO FOCUS ON
UNCLASSIFIED
PAGE 03 ROME 00294 01 OF 02 251318Z
NEW LEGISLATION TO MODIFY THE PROVISION. PASSAGE OF A
NEW LAW WOULD ANNUL A REFERENDUM FEW ARE INTERESTED IN
CONTESTING.
3. THE PROVISION, ARTICLE 18 OF THE WORKERS' STATUTE,
GOVERNS WORKERS' ENTITLEMENT TO COMPENSATION WHEN
IMPROPERLY FIRED. CURRENT LAW ALLOWS EMPLOYERS AT SMALL
FIRMS (FEWER THAN 15 EMPLOYEES) TO CHOOSE WHETHER TO
REINSTATE OR COMPENSATE THOSE EMPLOYEES FOUND TO HAVE
BEEN IMPROPERLY FIRED; AT LARGER ENTERPRISES, THE CHOICE
REMAINS WITH THE WORKER. UNDER THE TERMS OF THE PROPOSED
REFERENDUM, THIS 15-EMPLOYEE THRESHOLD WOULD BE
ABOLISHED, EFFECTIVELY EXTENDING TO ALL EMPLOYEES THE
RIGHT ENJOYED BY WORKERS AT LARGER FIRMS TO CHOOSE THE
FORM OF COMPENSATION.
4. IN 2001, THE BERLUSCONI GOVERNMENT PRESENTED REFORM
OF ARTICLE 18 AS A CORNERSTONE OF EMPLOYMENT POLICIES
AIMED AT INTRODUCING MORE FLEXIBILITY INTO THE LABOR
MARKET. THE THREE MAIN TRADE UNION CONFEDERATIONS
EXPRESSED CONCERNS OVER THE PACKAGE PROPOSED AND
ORGANIZED A JOINT GENERAL STRIKE IN APRIL. AFTER THE
STRIKE, TWO OF THE CONFEDERATIONS, CISL AND UIL, RESUMED
NEGOTIATION WITH THE MINISTER OF LABOR AND EVENTUALLY
REACHED AGREEMENT FOR A FUTURE AMENDMENT OF ARTICLE 18.
(UNDER THE AGREEMENT, THE GOI WOULD HAVE PROPOSED THAT,
ON A TRIAL BASIS, COMPANIES CROSSING THE THRESHOLD OF 15
WORKERS BE EXEMPT FROM THE PROVISIONS OF ARTICLE 18.)
BUT CGIL, THE LARGEST AND FURTHEST LEFT OF THE
CONFEDERATIONS, CONSIDERED ARTICLE 18 A KEY SYMBOLIC
RIGHT THAT COULD NOT BE MODIFIED. THE ENSUING CONFLICT
UNCLASSIFIED
PAGE 04 ROME 00294 01 OF 02 251318Z
OVER THE PROVISION SPLIT BOTH THE CENTER-LEFT PARTIES AND
THE TRADE UNION CONFEDERATIONS. SERGIO COFFERATI, THE
FORMER SECRETARY GENERAL OF CGIL, USED THE DISAGREEMENT
OVER ARTICLE 18 TO GALVANIZE OPPOSITION TO THE BERLUSCONI
GOVERNMENT, BREAKING THE COMMON TRADE UNION STAND. AT
THE SAME TIME, COMMUNIST RENEWAL TOOK ADVANTAGE OF THE
POLITICAL DEBATE TO GATHER SIGNATURES FOR A REFERENDUM
DESIGNED TO EXTEND ARTICLE 18 TO ALL COMPANIES.
5. THE CONSTITUTIONAL COURT'S RECENT RULING AND A NEW
GOI APPROACH HAVE TRANSFORMED THE REFORM OF ARTICLE 18
FROM A SYMBOLIC REFORM TO A PRAGMATIC ISSUE TO BE TACKLED
BY THE PARLIAMENT. EVEN COFFERATI RECENTLY ACKNOWLEDGED
THAT HOLDING THE REFERENDUM TODAY COULD LEAD TO A DEEP
SPLIT IN THE ALREADY-FRACTURED CENTER-LEFT. 1IN THE
DEMOCRATS OF THE LEFT (DS),AS WELL AS IN CGIL, THERE ARE
DIFFERENT OPINIONS ON THE EXTENSION OF ARTICLE 18. PIERO
FASSINO, THE LEADER OF DS, ANNOUNCED THAT HE WOULD
PROPOSE SOON A REVISION OF THE LAW THAT, IF APPROVED,
WOULD AUTOMATICALLY CANCEL THE REFERENDUM. THE STRATEGY
OF THE DAISY PARTY (PART OF THE OLIVE TREE COALITION WITH
DS),HOWEVER, WOULD BE TO HOLD THE REFERENDUM AND
ENCOURAGE ITS SUPPORTERS TO VOTE NO, IN ORDER TO
HIGHLIGHT ITS INTENTION NOT TO INTRODUCE NEW LEGAL
RESTRICTIONS FOR SMALL COMPANIES AND, CONSEQUENTLY, ITS
DISTINCTION FROM THE RADICAL LEFT, LIKE RC. THE
UNCLASSIFIED
UNCLASSIFIED PTQ4448
PAGE 01 ROME 00294 02 OF 02 251318Z
ACTION DRL-02
INFO LOG-00 NP-00 AID-00 CEA-01 CIAE-00 COME-00 CTME-00
DODE-00 ITCE-00 ANHR-00 SRPP-00 DS-00 EB-00 EXME-00
EUR-00 E-00 UTED-00 VC-00 FRB-00 H-01 TEDE-00
INR-00 ITC-01 LAB-01 L-00 VCE-00 AC-01 NSAE-00
NSCE-00 OMB-01 OPIC-01 PA-00 PM-00 PRS-00 ACE-00
P-00 SCT-00 SP-00 SSO-00 STR-00 TEST-00 TRSE-00
USIE-00 PMB-00 DSCC-00 PRM-00 G-00 NFAT-00 SAS-00
/009W
-------------- 2B8838 251319Z /38
P 251248Z JAN 03
FM AMEMBASSY ROME
TO SECSTATE WASHDC PRIORITY 7816
INFO DEPT OF LABOR WASHDC
EU MEMBER STATES COLLECTIVE
AMCONSUL MILAN
AMCONSUL FLORENCE
AMCONSUL NAPLES
UNCLAS SECTION 02 OF 02 ROME 000294
SIPDIS
DOL FOR ILAB/BRUMFIELD
DEPARTMENT FOR DRL/IL AND EUR/WE
E.O. 12958: N/A
TAGS: ELAB PGOV PGOV IT IT ELAB
SUBJECT: CONSTITUTIONAL COURT APPROVES REFERENDUM ON KEY
UNCLASSIFIED
PAGE 02 ROME 00294 02 OF 02 251318Z
LABOR LAW PROVISION
GOVERNMENT IS ALSO IN FAVOR OF THE REFERENDUM, SINCE IT
EXPECTS THAT THE MAJORITY OF ITALIANS WOULD VOTE AGAINST
THE PROPOSED REFORM AND THAT THE REFERENDUM COULD THUS
HIGHLIGHT AND EXACERBATE THE CENTER-LEFT'S INTERNAL
DISARRAY.
6. COMMENT: ALTHOUGH LARGELY UNWELCOME TO THE MORE
MAINSTREAM PARTIES ON THE LEFT, THE RC'S REFERENDUM
PROPOSAL ULTIMATELY MAY PROVE TO BE THE PUSH NEEDED TO
GET SERIOUS WORK STARTED ON LABOR MARKET REFORM AND A NEW
UNEMPLOYMENT BENEFITS SCHEME PROPOSED BY THE GOI.
SEMBLER
_______________________________
1THE REFORM OF ART. 18 INITIALLY PROPOSED BY THE GOI WAS
OPPOSED BY THE DAISY PARTY, THE DS, RC, CGIL, CISL AND
UIL. SO: IT "GAVE NEW STRENGTH TO THE CENTER-LEFT" AND
UNITY. TODAY IT SEEMS THAT THE REFERENDUM WOULD SPLIT THE
OPPOSITION: RC, A COMPONENT OF DS AND A COMPONENT OF CGIL
WOULD VOTE YES; THE DAISY, A COMPONENT OF DS AND A
COMPONENT OF CGIL WOULD VOTE NO. THE STATEMENT OF
COFFERATI HELPS UNDERSTANDING THE DIFFERENT POLITICAL
MEANINGS OF THE REFORMS OF ART. 18.
UNCLASSIFIED
>
2003ROME00294 - Classification: UNCLASSIFIED