3.7.6.3. Contents

In order to meet the commitments undertaken at EU level to restructure the Italian steel industry, a three-year plan was drawn up which provides for early retirement for employees of private and public steel companies and employees of investment-good companies in the steel sector which had already enjoyed the benefits provided under Law 181/89 and which were in operation on 1.1.1994. The three-year plan was approved by the Ministry of Labour in agreement with the Ministry of Industry, Trade and Crafts, and the Treasury. It covers workers in the steel sector aged at least 50 (men) and at least 47 (women) who meet the actuarial conditions, have made minimum contributions in accordance with Article 2 of Decree-Law 503 of 30.12.1992 and have paid contri-bu-tions for at least 16 years (as of 31.12.1994) or 17 years (after 1.1.1995). The early retirement plan may also incorporate persons in employment in the steel sector as of 1.1.1993 but subse-quently made redundant, provided they:

a) did not make an application when Law 451/94 on the advanced payment of the redundancy allowance in accordance with Law 223/91, Art. 7, § 5 came into force; or

b) were made redundant due to the termination or reduction of economic activity between 20.7.1994 and 31.12.1994, provided they had paid contributions for at least 30 years. This pro-vision also covers executives. The early retirement pension is calculated by adding a maximum of ten years' contributions to claimants' actual contributions.

Applications for early retirement are irrevocable and must be made within 90 days of Decree-Law 299/94 coming into force, i.e. by 19.8.1994, to the firm employing the worker in question, provided he/she already meets the conditions of entitlement or will do so in the course of 1994 to 1996. The firms then proceed to make a selection among the applications received on the basis of the three-year plan (on which the trade unions have some influence) and in accordance with their restruc-tur-ing and reorganisation requirements. The applications are subsequently submitted to the relevant departments of the social insurance institution. A maximum of 17,100 (Art. 9 novies, Law 608/96) persons may participate in the measure.

3.7.6.4. Financial resources

The costs of this measure are borne by the state (via the INPS)

3.7.6.5. Institutional support

Ministry of Labour and INPS

3.7.6.6. Duration

The measure covers the three-year period 1994 to 1996

3.7.6.7. Effects

The Labour Ministry Decree of 7.12.1994 granted early retirement to 13,532 persons in 11 enterprises or groups in the steel industry and to 1,048 persons in 10 enterprises in the steel machinery sector. In addition, early retirement was reserved for 920 other employees of steel enterprises which planned a reduction in productive capacity by the end of 1995. Because this goal was not met in the time foreseen, further decrees were passed allocating these 920 cases of early retirement to enterprises which were able to certify, on the basis of a declaration by their legal representative, that their plants were no longer operating. It is to be noted that the reserve of 920 cases of early retirement proved to be higher than the number required by the enterprises which closed down plants. There is thus a residual reserve of 287 early retirement cases.

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