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Italy's May 2001 general election resulted in victory for the centre-right coalition led by Silvio Berlusconi. The Confindustria employers' confederation has welcomed the political stability that the result will bring for the next five years, and restated the proposals that it considers necessary for the economic relaunch of the country. The Cisl and Uil trade union confederations are waiting for the government to announce its programme before reacting in detail, but are calling for the current system of social concertation and dialogue to be safeguarded. The third main union confederation, Cgil, believes that conflict may develop between the unions and the new government over health, education and the protection of workers' rights.
The general election held on 13 May 2001 resulted in a clear parliamentary majority for the House of Freedom (Casa delle Libertà), the centre-right coalition headed by the Prime Minister elect, Silvio Berlusconi, which obtained 366 seats out of 630 in the Chamber of Deputies and 177 out of 315 in the Senate.
The social partners reacted in different ways to the election results. At the annual assembly of Confindustria, held in Rome on 24 May 2001, its president, Antonio D'Amato, reiterated the employers' confederation's position– already presented at a meeting in May 2001 (IT0104185F) - on the economic and financial measures necessary to guarantee Italy's competitiveness and economic development, "even if this involves unpopular decisions". According to Confindustria, the government should above all reduce the tax burden on companies in order to foster investment. Taxation should be cut drastically and the fall in income compensated for through the reduction of public expenditure, in particular on social security. Within a more general reform of the whole social security system, Mr D'Amato said that he was willing to discuss the future of the end-of-service allowance (trattamento di fine rapporto, Tfr). The possible use of this allowance - whereby employers set aside a portion of a worker's pay, which is then paid as a lump sum at the end of the employment relationship - IT9906119N) - for other purposes has always been a controversial issue for Confindustria.
Mr D'Amato also underlined the importance of relaunching social dialogue and concertation with the social partners, focusing on flexibility in hiring and firing in order to reduce drastically both unemployment and the "underground" clandestine economy. Confindustria says that it a does not want a market without rules, but seeks more flexible rules in order to guarantee greater stability.
The Cisl and Uil trade union confederations appreciated the willingness of Mr D'Amato to discuss and relaunch social dialogue and concertation. However, the trade union organisations have again expressed their disagreement with the employers' proposal to amend Article 18 of law 300 of 1970 (the Workers' Statute), which provides for obligatory reinstatement where the dismissal of an employee by an employer has been judged by the courts to be invalid. Savino Pezzotta, the general secretary of Cisl, said that "it is not possible to modify Article 18 of the Workers' Statute", a position supported by Luigi Angeletti, the general secretary of Uil. Confindustria believes that this provision should be modified, giving the courts the possibility of sanctioning economically companies which dismiss workers without just cause. The right to be reinstated should be abolished completely or, as some Confindustria representatives assert, retained only in the case of discriminatory dismissals (due to sex, race, political views etc).
On the issue of pensions reform, which is due to be discussed in the coming months (IT0104184F), the leaders of Cisl and Uil prefer to wait for the assessment of the pensions agreement signed in 1996 by the unions and the government, which will take place later in 2001.
Sergio Cofferati, the general secretary of the Cgil union confederation, has stated that Confindustria's priorities, if taken up by the government, might cause a bitters social conflict.
Mr Berlusconi has stated that he agrees completely with Confindustria's priorities and is ready to "make unpopular choices". The agenda of the new government, said the Prime Minister elect, includes important plans such as: the interruption of the current reform of school cycles; a reform of the rules for public tenders; and the elimination of gift and inheritance taxes..
The discussions between the social partners on Confindustria's proposals and on those of the new government have overlapped, bringing the debate onto the political plane.
Cgil believes that the issues of healthcare system, the education system and the protection of workers' rights might be the possible causes of conflict between the trade union confederations and the new government, and accused Confindustria of working hand in hand with the centre-right coalition. Mr Angeletti of Uil has stated that at this early stage he does not want to judge the programme that the new government will present to parliament, but underlined that his main interest is to maintain the current social concertation policy "whose primary aim must be development and employment". For Cisl, Mr Pezzotta has also stressed concertation and believes that the attitude which the new government take towards this policy will be fundamental.
Confindustria has reacted positively to Mr Berlusconi's firm positions. Mr D'Amato said that the new government will probably achieve its long-term objectives, thanks to the political stability which the election results should guarantee for the next five years.