Identifier
Created
Classification
Origin
03ROME4533
2003-10-03 08:42:00
UNCLASSIFIED
Embassy Rome
Cable title:  

CONTINENTAL AIRLINES RECEIVES GOI LABOR SOLIDARITY

Tags:  EAIR ECON ELAB ETRD IT FAA AVIATION 
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UNCLAS ROME 004533 

SIPDIS


E.O. 12958: N/A
TAGS: EAIR ECON ELAB ETRD IT FAA AVIATION
SUBJECT: CONTINENTAL AIRLINES RECEIVES GOI LABOR SOLIDARITY
PAYOUT

UNCLAS ROME 004533

SIPDIS


E.O. 12958: N/A
TAGS: EAIR ECON ELAB ETRD IT FAA AVIATION
SUBJECT: CONTINENTAL AIRLINES RECEIVES GOI LABOR SOLIDARITY
PAYOUT


1. SUMMARY: THE GOI MINISTRY OF LABOR HAS CONFIRMED THAT
CONTINENTAL AIRLINES IS RECEIVING A PAYMENT OF 82,509 EUROS
(APPROXIMATELY USD 96,500) UNDER THE SOLIDARITY FUND
ADMINISTERED BY ITALIAN REGIONAL LABOR MONITORING
AUTHORITIES. IN COOPERATION WITH LABOR MINISTRY ADVISOR
LINDA D'URSO, EMBOFFS HELPED SECURE FINAL APPROVAL AND
ISSUANCE OF THE PAYMENT. END SUMMARY.


2. IN 2002, CONTINENTAL REDUCED EMPLOYEE WORKING HOURS AND
THUS BECAME ELIGIBLE FOR THE SOLIDARITY FUND BENEFITS. THE
FUND WAS ESTABLISHED IN DECEMBER 2001 AND WILL REMAIN ACTIVE
UNTIL DECEMBER 2003.


3. ITALIAN LAW 236 OF JULY 1993 PERMITS A FIRM EXPERIENCING
FINANCIAL DIFFICULTIES TO BENEFIT FROM A "SOLIDARITY FUND" IF
THAT FIRM PRESERVES JOBS BY REDUCING EMPLOYEE WORKING HOURS
RATHER THAN THE SIZE OF ITS WORKFORCE. TO COMPENSATE FOR THE
RESULTING EXPENSE INCURRED, THE MINISTRY OF LABOR PAYS THE
FIRM HALF THE LABOR COST OF THE REDUCED EMPLOYEE WORKING
HOURS. OF THE MONEY PAID FROM THIS FUND, HALF IS EARMARKED
DIRECTLY FOR WORKERS. THE COMPANY RECEIVES THE OTHER HALF,
BUT CAN CHOOSE TO GIVE THE ENTIRE AMOUNT TO ITS EMPLOYEES. A
COMPANY CAN BENEFIT FROM THE SOLIDARITY FUND FOR A MAXIMUM OF
TWO YEARS.


4. CONTINENTAL SUBMITTED ITS CORRECTED DOCUMENTS SUPPORTING
ITS REQUEST FOR SOLIDARITY FUNDS IN NOVEMBER 2002, ALTHOUGH
THE REQUEST WAS NOT PROCESSED AND APPROVED UNTIL THE END OF
THAT FISCAL YEAR. AS A RESULT, THE PAYMENT WAS REISSUED FOR
FY 03 AND HAD TO CONFORM TO FY 03 BUDGET LIMITS.
SEMBLER




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2003ROME04533 - Classification: UNCLASSIFIED