5 Jun 2018 Ferado

Italy’s new leaders to ‘review’ Renzi labour reforms

Italy: The legislation, introduced in 2015, made it easier for large companies to fire people and offered fiscal incentives for companies that hired permanent workers on new, less-protected terms.
Italy’s government was finally sworn in on Friday, ending months of political turmoil and the threat of a repeat election. But investors remain nervous, since the coalition promises to increase spending, slash taxes and challenge EU fiscal rules, which would add to Italy’s debt pile .
“People not only don’t have any (job) security to get married, they don’t even have any (job) security to book their holidays,” Di Maio, the 5-Star Movement’s leader, said in a Facebook post.
Di Maio was appointed as deputy prime minister and head of the newly merged labour and industry ministry.
Former Prime Minister Matteo Renzi pushed through the so-called Jobs Act in 2015, promising it would create jobs and end a situation where the vast majority of young people were employed via insecure short-term contracts.
But the reform was controversial. Big business cheered the tax breaks and the easing of firing restrictions. Unions said easier dismissal undermined basic workers’ rights.
Its results were also disputed. Employment has increased, but in the last two years most new jobs created have been the kind of temporary work the Jobs Act was supposed to deter.
Moreover, the rise in overall employment has been driven mainly by pension reforms by previous governments, which raised the retirement age, rather than more jobs for the young.
Italy’s unemployment rate stood at 11.2% in April.
“If we want to strengthen the economy, we need to reduce the uncertainties and one of the reasons for the uncertainties is the Jobs Act,” Di Maio said. “The Jobs Act must be reviewed.”
He did not give details of what the changes would entail.
At a party celebration in Rome on Saturday, Di Maio said he would work to create jobs that are relevant to today’s economy and push for an adequate minimum wage.
Some economists have said that rather than the Jobs Act, Italy needed investment in education and technology and, as in Germany, closer links between schools, universities and companies to boost jobs.

5 Jun 2018 Ferado

Germany 800,000 construction workers win pay rise

Germany: More than 800,000 construction workers will get a pay raise as a result of the deal. For full-time skilled construction workers this can mean a pay raise of around 200 Euros more per month.

“That’s the highest wage deal sealed nationwide this year,” IG BAU head Robert Feiger said to the news agency Reuters, adding that the result ensured workers finally got their fair share of the booming economy.

The German economy has had an upswing for many years now and expanded by 2.2 percent in 2017 and record low unemployment rates. Construction companies have a hard time finding enough workers for their projects which has made it easier for the union to get their demands through.

“We congratulate IG Bau in concluding this agreement after intense weeks of negotiations. It is a well-earned victory for construction workers in Germany through dialogue and negotiations. Clearly it is only fair that workers get a bigger share of profits since they are contributing to the boom,” said BWI’s General Secretary Ambet Yuson.