Italy's business leaders and trade unions signed an agreement Wednesday to boost flagging productivity in exchange for tax incentives as the government campaigns for growth in the recession-hit country. The agreement includes measures aimed at giving employers greater flexibility to alter contracts and working conditions, in exchange for 2.1 billion euros ($2.6 billion) in productivity tax incentives from the government until 2014. The CGIL, Italy's biggest union, was the only social partner to refuse to agree to the deal, warning that conditions for workers would suffer. "The deal is an important step in relaunching the economy and protecting workers' rights and social welfare," the government said in a statement. Among other things, it will see negotiations over labour contracts dealt with at a local level and not through sector-wide collective labour agreements. The signatories have until December 31 to outline the new rules on worker representatives to create "a more stable and efficient system". "Over the last few years, and particularly after the crisis, Italy's economy has developed more slowly than its European and international partners, with negative effects on employment," the government statement said. "Workers, businesses, families and young people have paid the price. Fewer jobs, lower wages, higher taxes. For this reason, productivity and modernisation are a crucial part of the government's agenda," it said. Italy has been hit by rapidly rising unemployment figures -- particularly among the young -- since it entered into recession at the end of last year. Prime Minister Mario Monti pushed hard for a deal to be brokered, urging business leaders and unions to do their part in boosting growth and citing a recent OECD report which has ranked Italy last out of the developed nations for productivity since 1995. He hailed the deal as "an important step" also in terms of attracting badly needed foreign investment to Italy. Economic Development Minister Corrado Passera said the deal would permit an increase in wages and jobs, while Luigi Angeletti, head of the UIL union, said it would "free us from the trap we've been in since the 1990s, with low salaries and low productivity".
GMT 12:09 2018 Monday ,26 November
Black Friday less wild as more Americans turn to online dealsGMT 15:07 2018 Sunday ,18 November
Refugee host countries discuss UNRWA's financial crisisGMT 17:22 2018 Wednesday ,31 October
Russia climbed to 31st place in Doing Business-2019 ratingGMT 16:53 2018 Wednesday ,17 October
"Putin" We need for collective restoration of Syria's economyGMT 14:02 2018 Friday ,12 October
Govt to announce incentives package for Overseas PakistanisGMT 18:26 2018 Saturday ,06 October
Dubai attracts Dh17.7 billion in foreign direct investmentGMT 09:02 2018 Friday ,21 September
Economy of Georgia demonstrates "strong signs of recovery"GMT 09:03 2018 Wednesday ,24 January
German investor confidence surges in JanuaryMaintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Send your comments
Your comment as a visitor