In Italy, pressure builds to overhaul wage system
Wall Street Journal
28 Aprile 2008
ROME - Steel magnate Emma Marcegaglia, the new head of Italy's powerful Confindustria business association, is planning to put a shakeup of the country's antiquated wage system at the top her agenda.
Her plan, which aims to tie salaries more closely to productivity at a company level, would go a long way in helping to increase the competitiveness of Italian companies and the wider economy if it succeeds.
Italy remains one of the few countries in the world in which a centralized national wage bargaining system covers all workers and often prevents private sector companies that are more productive from paying higher wages. The problem extends to Italy's vast public sector, where a civil servant working in the richer north of the country is under the same national contract as one in the south, even though the cost of living differs widely.…
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