Italy - Decree curbs pay flexibility - March 31, 2017

The government has approved a decree abolishing one of the most flexible and unregulated forms of payment for workers, heading off a referendum on the issue and accepting trade union’s demands on this issue. Payment by vouchers was introduced in 2008 as an experiment for seasonal farm workers but its use has expanded steadily and is now widely abused, according to labour experts. The largest union, CGIL, collected three million signatures last year to force a referendum to abolish voucher payment. However, rather than risk a bruising ballot-box defeat, the government has decided to act pre-emptively by withdrawing the vouchers pay system before the vote is held.

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