Italy: Union backed labour law referendums fail… badly

Italy’s trade union backed referendums to restore worker protections failed due to very low voter turnout, strengthening Meloni’s government and leaving the 2016 Jobs Act unchanged.

The key Points: On June 8 and 9^th Italy held five referendums initiated by trade unions and civic organizations. Four of these votes were intended to roll back parts of the 2016 Jobs Act. Though the labour law changes did win the support of the majority of those who voted, the Italian constitution requires a voter turnout of at least 50% plus one for a referendum to succeed. Actual voter turnout about 30%. The five votes were deemed to have failed. 

Why this matters: Prime Minister Giorgia Meloni and her ruling coalition opposed the referendums and urged citizens not to vote. The strategy worked. After the results were announced Meloni’s government hailed it as a win for the status quo. Minister Giovanbattista Fazzolari  declared: “The opposition tried to turn the five referendums into a vote against the Meloni government… The result is clear: the government emerges stronger, and the left weaker.”

What this means: The referendum defeat is a significant setback for unions and civic groups who to restore worker protections which they claim were dismantled over the past decade. Italy’s 2016 Jobs Act remains in place. 

The 4 questions asked: The four areas that the referendum had hoped to reverse were: 

• Restoring Protections Against Unlawful Dismissals: Aimed to abolish the current system which replaced reinstatement with economic compensation for unfair dismissals, especially in small businesses
• Small Business Dismissals and Compensation: Sought to partially abolish rules that made it easier for small businesses to dismiss employees with limited compensation
• Fixed-Term Contracts: Proposed to partially abolish restrictions on the use of fixed-term contracts, including their maximum duration and the conditions for renewals and extensions.
• Liability in Subcontracting: Sought to abolish the exclusion of joint liability for workplace accidents among clients, contractors, and subcontractors, aiming to strengthen worker protections in subcontracting chains. 

ADDITIONAL INFORMATION:

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