Italy: unitary agreement at Golden Lady delays the application of the labor market reform provision imposing the transformation of atypical contracts into permanent ones

Reasons and consequences.  “We wanted to give our support to a well-ordered recruitment system with subservient contracts.  Indeed, transforming these contracts at once was not possible from an economic point of view” explained Carmelo Prestileo, Uilta national secretary.  Indeed, the enforcement of the labor reform on July 18 would have forced Golden Lady, which “employs 120,000 people through these participation association contracts with a working contribution,” to immediately turn all these contracts into permanent contracts, therefore “radically upsetting” the organization and management of its stores, which “could have had an impact on the economic viability of many of them.”  Article 8 of the Labor Code reform, which allows local agreements to derogate from collective agreements and regulations, was the “perfect solution” to avoid an employment crisis.  Thus, the agreement adds one year to the deadline for applying the provision imposing the transformation of atypical contracts, in order to “study the proper recruitment modalities for the participation association contracts into subservient labor contracts.”  The company confirms that it definitely intends to maintain its relations with “all participation associates” via a “reasoned streamlining path.”  It will look for the possibility of using, where appropriate “apprenticeship contracts or alternatives employment incentive measures.”  Besides, the commercial network or part of it can only be sold if the agreement is respected.  the signing parties will analyze, during the year, workers’ “objective and subjective characteristics” before signing new permanent contracts.  Saying that this agreement is “extremely satisfactory,” Stefania Pomante, Filctem national secretary who signed the text, told the press that, this way, “we will manage to find the most appropriate individual solutions within the legal perimeter defined by the reform.”
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reements and regulations, was the “perfect solution” to avoid an employment crisis. Thus, the agreement adds one year to the deadline for applying the provision imposing the transformation of atypical contracts, in order to “study the proper recruitment modalities for the participation association contracts into subservient labor contracts.”

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