Italy’s Right-Wing Blocks Minimum Wage Bill, Sparking Controversy

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Opposition outcry as Italy’s governing parties reject a proposed minimum wage.

Italy’s right-wing governing parties have thwarted an opposition-led initiative to introduce a minimum wage, aligning the country with a handful of EU nations that rely solely on collective bargaining for wage determination. Members of parliament voted against the proposed bill, which aimed to establish a minimum wage of nine euros ($9.7) per hour before tax, prompting an outcry from opposition members who decried the decision as siding with exploiters.

In a contentious session, Prime Minister Giorgia Meloni’s hard-right government secured a six-month window to implement measures aimed at achieving “fairer” pay in Italy. The opposition, particularly the centre-left Democratic Party, vehemently opposed the rejection of the minimum wage proposal, accusing the government of neglecting the plight of workers facing “poverty wages.”

Italy currently joins Austria, Denmark, Finland, and Sweden as one of the five EU countries where wages are exclusively determined through collective bargaining. The government’s counterproposal involves extending collective agreements to approximately 20 percent of workers without existing agreements, but critics argue that this may leave many earning wages below the proposed minimum.

Former Prime Minister Giuseppe Conte, now leading the Five Star Movement (M5S), expressed symbolic dissent by tearing up a copy of the government’s bill in parliament, receiving applause from opposition deputies. Conte emphasized that those opposing the minimum wages had “turned their backs on 3.6 million workers.”

Prime Minister Meloni defended the decision, cautioning that setting a minimum wage “paradoxically risks lowering wages.” She raised concerns about employers potentially reducing wages, stating, “We risk an employer saying ‘if I can lower it to nine euros, why do I have to pay more?'”

Labour Minister Marina Elvira Calderone emphasized that creating a “decent salary” does not necessarily involve setting a specific figure. Despite polls indicating 70 percent of Italians, including coalition party voters, support a minimum wage, opposition comes from small traders, restaurant owners, and farmers who view it as too restrictive.

Divisions also exist within the unions, with the CGIL expressing dissatisfaction with the government’s stance, while the CISL opposes the minimum wage, fearing a reduction in their influence over collective agreements.

Italy, as per OECD data, is the sole European country where real wages decreased between 1990 and 2020. The EU introduced voluntary rules governing the minimum wage in November 2022.

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