Labor Decree, today at 11 the CDM on cost cutting and the tax wedge

The Meloni government symbolically wanted to convene this Council of Ministers precisely for May 1, on Labor Day. A decision that the CGIL, CISL and UIL did not appreciate. More conciliatory tones yesterday evening, during the meeting in which the executive illustrated the measures of the provision to the unions. They range from the cut in the tax and contribution wedge, to the ceiling for the tax reduction of fringe benefits, to the arrival of the Inclusion Check and the so-called Work Activation Tool

A Council of Ministers is being held today at 11 at Palazzo Chigi in which the labor decree and cost cutting and the tax wedge will be discussed. A meeting that the Meloni government strongly and symbolically wanted to convene for May 1st, on Labor Day (THE LIVEBLOG ON EVENTS). A decision that CGIL, CISL and UIL, to use the words of Maurizio Landini’s leader, have seen as “an act of arrogance and offensive” and which – they suspect – has the objective of wanting to obscure the traditional union rallies. “Landini’s words are incomprehensible. If he really thinks it is harmful to work on May 1st, then the triple concert should be organized on another day”, replied the premier. Yesterday evening, however, there was a meeting between the government and the unions and Meloni received an initial opening to the measures on the wedge by the CGIL, CISL and UIL, albeit with different nuances.

The meeting between the government and the trade unions

During the meeting, the prime minister used more conciliatory words towards the unions. “A CDM on May 1st to cut labor costs is not disrespectful. It is a signal and I would have expected a ‘well done’. It was a way of saying ‘we are here and we are all here’, an outstretched hand, a attempt to dialogue and work together, because I think we are in agreement on cutting the tax wedge”, he said. The change of tone opened a gap that broke the initial compactness of the three confederal trade unions: Luigi Sbarra suspended the judgement, Pier Paolo Bombardieri no longer spoke of total rejection of the measures, Maurizio Landini remained totally closed for the which there is still every reason for a mobilization against the overall package of the executive. “I consider tonight’s meeting really important and useful, if it really succeeds in determining a new path of social dialogue, discussion and sharing”, said the CISL leader as he left Palazzo Chigi.

The measures of the decree

One issue that sees the confederal unions always united, and critical, is the method adopted by the government with the convening at Palazzo Chigi at the last moment and the lack of a definitive text of the measures in question. In yesterday’s meeting, the prime minister illustrated the provision to CGIL, CISL and UIL with the latest changes made: from the cut in the tax and social security wedge, which will increase by four points, reaching up to seven points for those earning up to 25,000 euros, to the ceiling for the detaxation of fringe benefits for employees with dependent children which rises to 3,000 euros. The definitive disappearance of the Citizenship Income from next year and the arrival of the Inclusion Check have been confirmed, for a total expenditure calculated at 5.4 billion euros in 2024. While the so-called Work Activation Tool, which will start from 1 September , will cost 276 million this year and 2.1 billion next.