US embassy cable - 03ROME4533

UNCLAS ROME 004533 
 
SIPDIS 
 
 
E.O. 12958: N/A 
TAGS: EAIR, ECON, ELAB, ETRD, IT, FAA, AVIATION 
SUBJECT: CONTINENTAL AIRLINES RECEIVES GOI LABOR SOLIDARITY 
PAYOUT 
 
1. SUMMARY: THE GOI MINISTRY OF LABOR HAS CONFIRMED THAT 
CONTINENTAL AIRLINES IS RECEIVING A PAYMENT OF 82,509 EUROS 
    (APPROXIMATELY USD 96,500) UNDER THE SOLIDARITY FUND 
ADMINISTERED BY ITALIAN REGIONAL LABOR MONITORING 
AUTHORITIES.  IN COOPERATION WITH LABOR MINISTRY ADVISOR 
LINDA D'URSO, EMBOFFS HELPED SECURE FINAL APPROVAL AND 
ISSUANCE OF THE PAYMENT. END SUMMARY. 
 
2. IN 2002, CONTINENTAL REDUCED EMPLOYEE WORKING HOURS AND 
THUS BECAME ELIGIBLE FOR THE SOLIDARITY FUND BENEFITS.  THE 
FUND WAS ESTABLISHED IN DECEMBER 2001 AND WILL REMAIN ACTIVE 
UNTIL DECEMBER 2003. 
 
3. ITALIAN LAW 236 OF JULY 1993 PERMITS A FIRM EXPERIENCING 
FINANCIAL DIFFICULTIES TO BENEFIT FROM A "SOLIDARITY FUND" IF 
THAT FIRM PRESERVES JOBS BY REDUCING EMPLOYEE WORKING HOURS 
RATHER THAN THE SIZE OF ITS WORKFORCE.  TO COMPENSATE FOR THE 
RESULTING EXPENSE INCURRED, THE MINISTRY OF LABOR PAYS THE 
FIRM HALF THE LABOR COST OF THE REDUCED EMPLOYEE WORKING 
HOURS.  OF THE MONEY PAID FROM THIS FUND, HALF IS EARMARKED 
DIRECTLY FOR WORKERS.  THE COMPANY RECEIVES THE OTHER HALF, 
BUT CAN CHOOSE TO GIVE THE ENTIRE AMOUNT TO ITS EMPLOYEES.  A 
COMPANY CAN BENEFIT FROM THE SOLIDARITY FUND FOR A MAXIMUM OF 
TWO YEARS. 
 
4. CONTINENTAL SUBMITTED ITS CORRECTED DOCUMENTS SUPPORTING 
ITS REQUEST FOR SOLIDARITY FUNDS IN NOVEMBER 2002, ALTHOUGH 
THE REQUEST WAS NOT PROCESSED AND APPROVED UNTIL THE END OF 
THAT FISCAL YEAR.  AS A RESULT, THE PAYMENT WAS REISSUED FOR 
FY 03 AND HAD TO CONFORM TO FY 03 BUDGET LIMITS. 
SEMBLER 
 
 

 
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	2003ROME04533 - Classification: UNCLASSIFIED