ITALY - Prime minister Prodi's resignation has raised concerns among Italy's three large trade unions since it could mean stagnation of reforms - including that of pensions.
Cgil, Cisl and Uil banded together to express their apprehension over how the country’s economy and social framework would cope during "this difficult time”.
Prodi resigned last night following a parliamentary defeat on foreign policy.
“We need a stabile government to be able to give workers the security and answers they require, particularly with regard to reforms,” the unions declared.
The reform of the pension system in Italy is currently at “the beginning of a very important challenge,” said Cisl secretary general Pier Paolo Baretta.
Meant to stimulate the complementary pensions sector, the reform aims at encouraging workers to transfer their final indemnity payments (Trattamento Fine Rapporto – TFR) into pension funds.
The TFR was previously paid into TFR funds held by the employer on the workers’ behalf.
“We need to change the workers’ mentality when it comes to TFR and help them view it as an investment, as opposed to a lump sum of money,” said Baretta.
“At the moment, there is some understandable resistance on behalf of workers to use their TFR for pension reasons and this needs to be tackled,” he concluded.
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