Italian Employers Clash With New Government on Worker Protection

  • Populist cabinet ‘shifts into reverse’ on labor rules: lobby
  • Companies have nothing to fear, says deputy premier Di Maio

A worker at the Lamborghini SpA factory.

Photographer: Alessia Pierdomenico/Bloomberg

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Italy’s main employers’ lobby clashed with the government on new rules limiting short-term contracts, possibly triggering a wider conflict on the new administration’s populist economic policies.

The decree approved Monday “is the first true act of the new executive and for this reason, it is a very negative signal for the business world,” Confindustria said in a statement on Tuesday. “The government is shifting into reverse gear.”