Italian government, unions square up over reform

Italy's centre-right government said today it was ready to amend controversial plans to reform the labour market, but refused…

Italy's centre-right government said today it was ready to amend controversial plans to reform the labour market, but refused to bow to union pressure to drop proposals to make it easier to hire and fire staff.

Unions have called a series of limited strikes this month over the government's proposals to overhaul the labour market and the pensions systems.

Talks to try to find a compromise to head off further trouble are currently deadlocked. The head of Italy's largest union, CGIL, said he would only return to the negotiating table if a key element in the labour market reforms - making it easier for employers to fire some categories of workers - was scrapped.

Labour Minister Roberto Maroni responded by saying there was time to talk if unions abandoned their ideological positions.

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CGIL leader Sergio Cofferati dismissed Maroni's call for dialogue and said: "We don't want them to touch (the existing clause on firing staff) at all." Under current regulations, workers fired without just cause can demand to be re-instated in their jobs.

The proposed reform would mean companies with more than 15 workers would not have to take back sacked staff but simply offer them compensation.

The government unveiled the reforms last year and is set to ask parliament to give it the power to legislate on the matter without any further recourse to the assembly.

Union officials have hinted they might call a general strike if the government does not back down.