Italy's PM Monti concedes to unions, ally on labor

Reuters News
Posted: Apr 04, 2012 12:05 PM
Italy's PM Monti concedes to unions, ally on labor

ROME (Reuters) - Italian Prime Minister Mario Monti on Wednesday made concessions to the country's biggest labor union and its key centre-left ally which had opposed labor reform plans that made it easier for companies to fire employees.

Under changes to proposals presented to cabinet last month, the measure will allow a judge to order the reinstatement of workers laid off when the business reasons advanced for the dismissal are "manifestly inexistent".

By contrast, the revised measures will also lower the maximum compensation payable to laid off workers to 24 months salary from a previous top limit of 27 months' salary.

Last month Monti proposed allowing companies to fire workers for business reasons without foreseeing the possibility of reinstatement, drawing protests from the CGIL labor union and the Democratic Party (PD), which backs his government.

"In cases where the economic motivations for firing are manifestly inexistent, a judge can decide to reinstate that worker," Labor Minister Elsa Fornero told reporters.

Monti said the package would be sent to parliament on Wednesday.

(Reporting By Steve Scherer)