The Italian Government Banned Layoffs. Italian Bosses Are Fuming.

When the Italian government introduced a temporary ban on layoffs for the period of the coronavirus crisis, the employers’ federation reacted furiously. Firms have already received billions of euros in subsidies to help pay their workers’ wages — but what they can’t tolerate is any limit on their power to hire and fire at will.

Bergamo Returns To Normality After Covid-19 Pandemic

A waiter serves customers on June 18, 2020 in Bergamo, Italy. (Emanuele Cremaschi / Getty Images)


For months, it’s as if every Italian TV station has been broadcasting the same message: the bosses’ campaign against “overindulged” workers. This already flared up in spring, when Italy was the first European country to be hit by the COVID-19 pandemic. Even at the height of the crisis, bosses’ federation Confindustria opposed any shutdown of nonessential production — preferring to keep dragging tens of thousands of workers and their families into potentially lethal danger.

In recent weeks, this voice of the Italian business elite has stepped up its campaign against the government’s coronavirus response measures, and in particular the temporary block on layoffs, first imposed during the shutdown. Together with the phalanx of journalists, economists, and commentators who echo its interests, Confindustria is seeking to gain elbow room for the next set of “restructuring” measures — that is, freedom to lump the costs of the crisis onto millions of workers.

One of the main steps taken by Giuseppe Conte’s government after the pandemic broke out in March, the block on layoffs was supposed to prevent the outbreak of mass unemployment. This was especially important as the pandemic conditions left millions of Italians worried whether they would even be able to pay the bills. A temporary halt, this measure was originally set to apply till August 31, but in recent days it has been extended till the end of October.

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