Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!americast.com!americast.com!americast-post Newsgroups: americast.twt.news From: americast-post@AmeriCast.Com Organization: American Cybercasting Approved: americast-post@AmeriCast.com Subject: Public servants' perks may disappear in plan for Italian Date: Fri, 20 Nov 92 15:30:30 EST Message-ID: \SE A;WORLD \SS (WS) \HD Public servants' perks may disappear in plan for Italian privatization \BY Stephen Addison \CR REUTERS NEWS AGENCY \DT ROME ROME - Italy's privatization program has set investors drooling and economists cheering, but for the country's army of pampered civil servants it has meant nothing but sleepless nights. Under plans to shake up and slim down the public sector, the old lucrative allowances, cozy routines and huge pensions would be things of the past. Officials would have to cope with scary new concepts such as working hours to suit the public, performance-related pay and possibly the ultimate indignity of punching a time clock. Howls of protest have been ringing down the corridors of Rome's imposing ministries since the proposals were first aired this year as part of a drive to make the public sector more efficient and cut costs. But even union organizers agree that change is long overdue. "Public administration in Italy just doesn't work," said Paolo Nerozzi, acting sectoral head of the CGIL, the country's largest union umbrella group. "It needs to be completely revamped," he said. "At the moment it is just a brake on the development of the whole country." Reform of the civil service is part of a proposal in Prime Minister Giuliano Amato's 1993 budget to shake up the public sector by freezing wages and pensions and renegotiating work contracts. Mr. Amato's proposal and other reforms aim to save about $20 billion next year. The plan was rammed through a reluctant parliament. Wages for Italy's 3.7 million public employees, including about 300,000 ministerial civil servants, account for nearly a third of state spending. In its annual report on the public sector, the Treasury said it wants to sweep away entrenched abuses and drag civil servants into line with the private sector. At the heart of the plan is an attempt to privatize public contracts by removing the legal guarantees that have foiled all efforts to reform the wage structure. Nearly 30 percent of the salaries of judiciary workers, for example, are allowances enshrined in law. If the legal protection is abolished, all aspects of public contracts will be up for negotiation, a prospect that has led dozens of court clerks to protest. Only groups involved in public security, including the army, police and magistrates, would be exempt. All the others would lose their hallowed status as civil servants, which entitles them to perks such as free vacations and lifelong job security. The Treasury says layoffs will be inevitable, and it makes no secret of its belief that Italian civil servants are overpaid. According to Treasury figures, the average salary of Italian civil servants is the highest in Europe at about $36,800, nearly double that of British workers. Working hours are another area of conflict. The Treasury is determined to break the time-honored system of mornings only, six days a week. This article is copyright 1992 The Washington Times. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM