Trade unions in Italy worry about working after the redundancy ban ends

Trade unions in Italy warn of a "social tsunami" and left-wing parties against an "employment massacre" in connection with the imminent end of the redundancy ban during the new coronavirus pandemic in the country. This proposal is also causing tension in the government of Prime Minister Mario Draghi's national unity. Proponents of the ban say it saved thousands of jobs after the pandemic plunged Italy into a deep recession. However, the European Union does not recognize this measure and employers are working to end it. The companies received the first ban on redundancies during the reign of former Prime Minister Giuseppe Conte in February 2020, when Italy, the first country in Europe, was hit by a COVID-19 pandemic, forcing the government to declare the first nationwide blockade, the so-called lockdown. The ban was later extended. When Draghi took office in February this year, he said the government "should protect workers, but it would be a mistake to protect all economic activities in the same way," saying that there must be an "election." The European Commission entered the fight this month, condemning the ban on redundancies as "counterproductive" because it protects workers with long-term contracts, but not those with more precarious jobs, which are mainly women and young people. It pointed out to Rome that France and Germany had instead offered financial support under the so-called kurzarbeit to people whose companies had reduced their working hours while fighting the consequences of the pandemic. The negative impact of the pandemic on employment in these countries was thus less severe than in Italy. The number of new coronavirus cases is currently declining and the ban on redundancies in Italy is due to expire at the end of June for the largest companies, especially in industry and construction. Small and medium-sized companies, especially in services, have until the end of October. Members of the coalition government and parliamentary parties have differing views on the matter. The largest parliamentary party, the Five Stars Movement, is similarly calling for an extension of the ban. On the contrary, the leader of the far-right League of the North, Matteo Salvini, wants the companies to return "freedom of employment". Last month, Labor Minister Andrea Orlando suggested the possibility of extending the ban under certain conditions until August. Instead, the Minister for Economic Development, Giancarlo Giorgetti, proposed extending the ban only for the most affected sectors, such as the textile industry. There are concerns that Italy could face a wave of redundancies once the ban ends. The most realistic estimates put the release of 70,000 to 100,000 people. However, unions fear that their numbers may be much higher and warn of "a million unemployed." However, despite the ban, 550,000 employees were made redundant in Italy in 2020 due to discipline problems or company closures. And hundreds of thousands of other people with fixed-term employment contracts have not been renewed by companies. In total, almost one million jobs were lost in Italy last year. The unemployment rate reached 10.4% in the first quarter of this year, which is the highest level since the beginning of 2019. In the age group from 15 to 24 years, it increased to 39.2% for women and 32.7% for men. However, the Italian economy is picking up again and some sectors, such as manufacturing and construction, are finding it difficult to find workers due to a lack of skilled labor. Confindustria, Italy's main employers' organization, predicted economic growth of around 5% in 2021, as did the Italian central bank. David Benassi, a professor of sociology at Bicocca University in Milan, believes that "the signs of economic recovery are so encouraging that lifting the ban on redundancies may have less dramatic effects than some fear".