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Jobs Act completed with four decrees

Jobs Act completed with four decrees

Pension reforms may be included in 2016 budget says Poletti

Rome, 04 September 2015, 19:01

ANSA Editorial

ANSACheck

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The government on Friday completed its landmark Jobs Act labour reform with the cabinet approval of four final enacting decrees, one of which controversially allows firms to check up on their workers through remote devices like phones and tablets.
    Labour Minister Giuliano Poletti hailed the approval of the last key decrees. "We have returned the focus onto steady jobs. Hundreds of thousands of insecure workers have a steady contract," he said.
    The completion of the Jobs Act comes after this week's encouraging drops in overall unemployment, to 12%, and youth unemployment, to 40.5%.
    They were the lowest rates in at least a year, the national statistics agency Istat said.
    So-called 'social buffers', cushioning the effects of unemployment, have now been extended to 1.4 million more workers, Poletti added. Poletti said a new welfare cheque for the unemployed, Naspi, would last a year. The Jobs Act contains new hire-and-fire rules designed to encourage firms to take on steady workers, but only applies to to new steady contracts.
    In another decree, the so-called 'remote controls' were approved.
    But Poletti stressed that the change to labour law allowing employers to check up on their workers remotely, by viewing their activity on phones, tablets and PCs, will "fully" respect their privacy.
    Workers will be warned before the checks are going to be made, he underscored.
    Poletti added that generic resignation letters would no longer be valid for leaving a job, according to terms that are part of the last four decrees.
    Resignations must be tendered on a form downloaded from the labour ministry website.
    "If there's not a dated and certified form, the resignation isn't valid," Poletti said.
    Poletti also addressed the thorny issue of changes to a controversial pension reform enacted under a previous technocratic government led by Mario Monti.
    The 2016 budget may contain changes to that 2011 pension reform to allow people to retire earlier on lower rates, Poletti said Friday. He said the budget bill, to be framed by mid-October, could contain more "flexibility" on pensions. The so-called Fornero Law, passed at the height of the euro crisis in December 2011, raised retirement ages and left thousands of people without a job or pension.
    Introducing a flexible pension system encouraging Italians to retire earlier would have a short term cost but would lead to savings for the state in the medium term, Undersecretary for the Economy Paolo Baretta was quoted as saying Friday.
    However Baretta challenged an estimate of the short-term cost of as much as 8.5 billion year, made by the head of the INPS social security agency, Tito Boeri, saying the real cost would be "less than half" what Boeri claimed.
    "In the medium and long term, making the pension age flexible would lead the state to save, not to spend more," Baretta told the Corriere della Sera.
    "Anyone deciding to leave work before 66 would have a lower cheque not just for some time but for the rest of their life. From this there would be budget savings".
    "To guarantee the equilibrium of the system one must look not just at today but at the days that come after. However it is clear that in the immediate there would be costs, but they can be sustainable" "One could link the cut in the cheque to income level - if you take a pension of 1500 euros, you cut 2%, if you take 2,500 euros, you cut a bit more. Or else you could introduce flexibility gradually".
    "In 2016 you allow people to leave one year early, in 2017 two years early, in 2018 you go up to three, and so on," Baretta said.
   

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