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Italian Unions to Strike to Protest Law Change

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Bloomberg News

Italy’s biggest unions called the first general strikes in seven years after Prime Minister Silvio Berlusconi refused to withdraw a proposal that would give businesses more freedom to fire workers.

Workers will strike two hours a day Dec. 5 to 7.

The government wants to suspend a law that restricts the ability of companies with more than 15 workers to fire an employee.

During his election campaign, Berlusconi pledged to cut in half Italy’s unemployment rate, currently at 9%, by creating 1.5 million jobs, while implementing pro-business reforms.

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Labor Minister Roberto Maroni said there is still time to negotiate a solution to the standoff.

The 1970 labor statute requires businesses with more than 15 employees to prove just cause in court when firing a worker. If they can’t, the employee must be rehired or paid substantial compensation.

Businesses say the law inhibits growth and employment and hurts Italy’s competitiveness within the European Union.

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