General Strike Threatened in Italty

Italian Unions Reject Changes in Pensions; General Strike Seen

Sept. 29 (Bloomberg) — Italy’s three largest trade unions, which represent more than 11 million people, rejected Prime Minister Silvio Berlusconi’s plan to change pension rules and threatened a general strike.

The government presented the plan to the unions today and offered to negotiate details with the labor leaders, but only until Friday when the cabinet muets to adopt the measures. The changes include requiring workers to stay on the job for 40 years or until they are 65 to collect a full pension and offering cash incentives to delay retirement.

The proposal is too rigid,'' Luigi Angeletti, head of the UIL, Italy's third-largest union.If our goal is that we must raise the retirement age, then the measures should be based on intelligent, flexible, and voluntary incentives. I doubt that we can come up with a new pension system in three days. The probability is zero.’’

Berlusconi has battled unions since coming to power more than two years ago. His plan to ease labor laws to make it easier for some companies to fire workers led to Italy’s biggest general strike in 20 years. The government modified those changes and pledged to work more closely with unions in adopting legislation that would affect workers rights.

The unions will meet Saturday morning and may announce a general strike in protest, Angeletti said.

Italy spends almost 14 percent of gross domestic product on pensions, the highest in Europe. The cost will balloon over the coming decades as the so-called baby boomers start to retire. Berlusconi’s government is trying to contain pension spending in a bid to control future budget deficits and reduce Italy’s debt, which is the largest in the EU and currently stands at almost 1.1 times gross domestic product.

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