Type
Internal restructuring
Country
Italy
Region
Location of affected unit(s)
Sector
Public Administration And Defence
Public Administration And Defence; Compulsory Social Security
Administration Of The State And The Economic And Social Policy Of The Community
84.1 - Administration of the State and the economic and social policy of the community

4,515 - 24,000 jobs
Number of planned job losses
Job loss
Announcement Date
2 July 2012
Employment effect (start)
1 January 2013
Foreseen end date
31 December 2014

Description

At the beginning of July 2012, the Italian government has announced a wide ranging spending review program for the public administration, which will affect approximately 24,000 workers. The plan will be implemented over the coming two years.

The plan concerns both the central and local public administrations and envisages several measures in order to contain and to control public spending, to rationalize the costs and, at the same time, to improve the efficiency of public administrations.

In total, the plan envisages a reduction of 10% of dependent employees and 20% of executives. A first estimation states that these will be around 24,000 employees. In particular, concerning the central public administration, the job cuts will affect around 7,250 workers (of which 239 executives), out of around 172,000 workers. The government is planning meetings with local administrations in order to find adequate measures to implement the plan at local level. Meetings with trade unions have also been planned.

In general, job cuts will affect workers who will reach the requisites for retirement in the next two years. Moreover, the government provides for the recourse to measures to reduce any negative social effects.

The Italian public administration has around 3,270,000 employees.

The trade unions reacted to the spending review program with criticism and announcing several protest actions.

UPDATE 13 November 2012: The Ministry of Public Administration announced to the trade unions some details on the spending review program for the public administration. In particular, 4,515 workers (4,028 employees and 487 superiors) will be made redundant in the course of next year. They are employed in the central public administration (excluding the Ministries of Justice, Foreign Affairs and Interior, and the armed force).

The Ministry is planning to apply measures such as retirement (for the workers who meet all the requirements), early-retirement schemes, part-time contracts, economic incentives for “voluntary” redundancies, in order to reduce the negative social effects for the workers who will be affected by the restructuring plan.

In the next months, more details on the effects of the spending review program on the local authorities, schools, other Ministries, the army and the Italian Institute of Social Insurance will be revealed by the Ministry of Public Administration. According to the Minister of finance, who termed the soon- to-be redundant employees “surpluses”, the restructuring will save the government up to €392 million.


Sources

  • 13 November 2012: La Repubblica
  • 7 December 2012: Il Sole 24 Ore
  • 7 October 2012: Il Sole 24 Ore
  • 7 July 2012: Il Sole 24 Ore

Citation

Eurofound (2012), Italian public administration, Internal restructuring in Italy, factsheet number 73914, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/73914.