US embassy cable - 02ROME5131

UNCLAS SECTION 01 OF 03 ROME 005131 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR EUR/WE AND DRL/IL 
DOL FOR ILAB/BRUMFIELD 
 
E.O. 12958: N/A 
TAGS: ELAB, ECON, PGOV, ECON, PGOV, ECON, PGOV, IT, ITELAB, ITELAB 
SUBJECT: OCTOBER 18 ITALIAN GENERAL STRIKE GENERATES 
WIDESPREAD DISRUPTION 
 
 
                       UNCLASSIFIED 
 
PAGE 02        ROME  05131  01 OF 03  220544Z 
REF: A) ROME 5049  B)ROME 5083 
 
1. NOT FOR INTERNET DISTRIBUTION. 
 
2. (SBU) ILLUSTRATING BOTH ITS REACH AND DEPTH AS ITALY'S 
LARGEST TRADE UNION CONFEDERATION, CGIL (THE GENERAL 
CONFEDERATION OF ITALIAN WORKERS) BROUGHT MUCH OF ITALY TO A 
CRAWL, IF NOT A COMPLETE HALT, DURING ITS ONE-DAY STRIKE 
OCTOBER 18.  THE EIGHT-HOUR ACTION CREATED SUBSTANTIAL 
DISRUPTION THE LENGTH OF THE PENINSULA, ESPECIALLY IN THE 
TRANSPORT SECTOR.  IT ALSO GENERATED FURTHER ACRIMONY 
BETWEEN CGIL AND THE OTHER TWO MAJOR CONFEDERATIONS, AS THEY 
SPARRED OVER THE STRIKE'S IMPACT AND UTILITY, THAT WILL MAKE 
THEIR RECONCILIATION MORE DIFFICULT.  THE ONE-DAY STRIKE MAY 
MARK THE END OF A PHASE IN WHICH THE THREE CONFEDERATIONS 
HAVE SPENT MUCH OF THEIR ENERGY ARGUING AMONG THEMSELVES 
OVER THEIR RELATIVE STRENGTH AND INFLUENCE RATHER THAN 
PRESENTING A COMMON FRONT TO EMPLOYERS AND THE GOVERNMENT. 
AT LEAST, THAT'S WHAT POLITICAL LEADERS ACROSS THE CENTER- 
LEFT HOPE.  CIRCUMSTANCES SHOULD HELP THE CONFEDERATIONS 
PATCH THINGS UP: THE BUDGET CRUNCH AND A CRISIS AT FIAT AUTO 
HAVE PROVIDED ORGANIZED LABOR, IN ALL ITS CONFIGURATIONS, 
WITH A TANGIBLE THREAT TO ITS MEMBERS THAT IS WORTH FIGHTING 
OVER. 
 
TIMING IS EVERYTHING 
-------------------- 
 
3. (SBU) FOR CGIL, THE GAMBLE OF CALLING A STRIKE 
INDEPENDENT OF THE OTHER CONFEDERATIONS (THE SECOND IN SIX 
MONTHS AFTER ALMOST 40 YEARS OF JOINT STRIKES) APPEARS TO 
                       UNCLASSIFIED 
 
PAGE 03        ROME  05131  01 OF 03  220544Z 
HAVE PAID OFF.  BUT IT'S FAIR TO SAY THAT THE CONFEDERATION 
WAS PERHAPS LUCKY RATHER THAN BRILLIANT.   WHEN CGIL 
ORIGINALLY CALLED THE STRIKE IN JUNE, ITS MOTIVE WAS LARGELY 
TO OBJECT TO THE OTHER TWO (CISL AND UIL) CONFEDERATIONS' 
DECISION TO SIGN A NEW LABOR PACT WITH THE GOVERNMENT AND 
EMPLOYERS THAT INCLUDED THE BERLUSCONI GOVERNMENT'S PROPOSED 
CHANGES TO ARTICLE 18 OF THE LABOR CODE (WHICH PROVIDE SMALL 
EMPLOYERS MORE FLEXIBILITY TO FIRE WORKERS).  ALTHOUGH 
SYMBOLICALLY IMPORTANT, IT WAS HARDLY THE ISSUE THAT MANY 
EXPECTED TO GALVANIZE PUBLIC OPINION OR PROMPT CHANGES IN 
THE GOVERNMENT'S APPROACH TO LABOR ISSUES (GIVEN THAT FEW 
EXPECTED A SURGE IN SMALL FIRMS' HIRING DUE TO THE ADDED 
FLEXIBILITY). 
 
4.(SBU) BUT A FUNNY THING HAPPENED ON THE WAY TO THE STRIKE: 
TWO ISSUES WITH ENORMOUS PRACTICAL SIGNIFICANCE EMERGED. 
FIRST, THE GOVERNMENT RELEASED ITS PROPOSED 2003 BUDGET (SEE 
REFTELS FOR FULL ANALYSIS) TO WIDESPREAD OPPOSITION. 
FINANCE MINISTER TREMONTI PROPOSED CUTS (DESIGNED TO KEEP 
ITALY IN LINE WITH EU FISCAL CRITERIA) THAT INCLUDED 
SUBSTANTIAL CONSTRAINTS ON PUBLIC FUNDS TO PROMOTE ECONOMIC 
DEVELOPMENT AND INVESTMENT IN SOUTHERN ITALY (WHERE 
UNEMPLOYMENT RUNS ABOVE 20%).   AFTER INITIAL ANALYSES 
REVEALED THE CUTS COULD JEOPARDIZE THE GOVERNMENT'S ABILITY 
TO MEET ITS UNEMPLOYMENT BENEFITS AND TAX REDUCTION 
COMMITMENTS UNDER THE NATIONAL LABOR PACT NEGOTIATED IN 
JULY, CISL AND UIL WARNED THEY WOULD HEAD FOR THE STREETS IF 
THERE WERE ANY REDUCTIONS IN AGREED MEASURES OR OTHER 
ALTERATIONS TO OTHER ELEMENTS OF THE PACT. 
 
5. (SBU) THEN FIAT ANNOUNCED PLANS (SEE SEPTEL) TO STABILIZE 
                       UNCLASSIFIED 
 
PAGE 04        ROME  05131  01 OF 03  220544Z 
ITS AILING AUTO DIVISION WITH SHOCK THERAPY, PROPOSING PLANT 
CLOSURES THAT WOULD IDLE OVER 8,000 WORKERS (INCLUDING 
ALMOST 2,000 AT A PLANT IN WESTERN SICILY).  IN A SOCIETY 
WHERE LABOR MOBILITY IS THE EXCEPTION (AND SOUTHERN WORKERS 
ESPECIALLY RESIST HEADING NORTH FOR WORK), THE PLANNED 
CLOSURES FUELED A FIRESTORM OF PROTEST.  WORKERS AT THE 
SICILIAN PLANT BEGAN A SERIES OF WORK STOPPAGES AND SHUT 
DOWN TRANSPORTATION ACROSS MUCH OF THE ISLAND, BLOCKING 
FREEWAYS AND RAIL LINES.  LOCAL OFFICIALS AND SICILIAN 
PARLIAMENTARIANS JOINED UNION LEADERS IN DENOUNCING THE 
PLANNED CUTS, CHARGING THE MOVE WOULD LEAVE DISMISSED 
WORKERS AND THEIR NEIGHBORS LITTLE ECONOMIC ALTERNATIVE BUT 
TO COLLABORATE WITH ORGANIZED CRIME.  "DON'T LEAVE US WITH 
THE MAFIA AT THE DOOR," PLEADED THE MAYOR OF ONE TOWN.  CGIL 
ASTUTELY SHIFTED THE MOTIVES FOR ITS STRIKE, DECLARING THAT 
THE ACTION WAS INTENDED TO DEMONSTRATE MORE BROADLY THE 
CONFEDERATION'S OPPOSITION TO THE BERLUSCONI GOVERNMENT'S 
ECONOMIC POLICY. 
 
6. (U) THE STRIKE PROMPTED WIDESPREAD DISRUPTION ACROSS 
ITALY, AS THE CONFEDERATION STAGGERED ITS ACTIONS ACROSS THE 
VARIOUS TRANSPORT SECTORS TO CREATE MAXIMUM DISRUPTION. 
ALITALIA WAS FORCED TO CANCEL 275 FLIGHTS (50% OF ITS DAILY 
SCHEDULE) AND NATIONAL RAIL CARRIER TRENITALIA DROPPED 40% 
OF ITS MEDIUM AND LONG-HAUL ROUTES FOR THE DAY.  UNION 
MEMBERS IN L'ACQUILA (WHERE CLOSURE OF ANOTHER FIAT PLANT 
 
                       UNCLASSIFIED 
 
                           UNCLASSIFIED     PTQ0875 
 
PAGE 01        ROME  05131  02 OF 03  220544Z 
ACTION EUR-00 
 
INFO  LOG-00   NP-00    AGRE-00  AID-00   CEA-01   CIAE-00  COME-00 
      CTME-00  DODE-00  ITCE-00  DOTE-00  ANHR-00  SRPP-00  DS-00 
      EB-00    EXME-00  E-00     FAAE-00  UTED-00  VC-00    FRB-00 
      H-01     TEDE-00  INR-00   IO-00    ITC-01   LAB-01   L-00 
      VCE-00   AC-01    NSAE-00  NSCE-00  OMB-01   OPIC-01  PA-00 
      PM-00    PRS-00   ACE-00   P-00     SCT-00   SP-00    IRM-00 
      SSO-00   STR-00   TEST-00  TRSE-00  USIE-00  PMB-00   DSCC-00 
      PRM-00   DRL-02   G-00     SAS-00     /009W 
                  ------------------FC0389  220545Z /38 
R 220459Z OCT 02 
FM AMEMBASSY ROME 
TO SECSTATE WASHDC 6449 
INFO DEPT OF LABOR WASHDC 
EUROPEAN POLITICAL COLLECTIVE 
 
UNCLAS SECTION 02 OF 03 ROME 005131 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR EUR/WE AND DRL/IL 
DOL FOR ILAB/BRUMFIELD 
 
E.O. 12958: N/A 
TAGS: ELAB, ECON, PGOV, IT 
SUBJECT: OCTOBER 18 ITALIAN GENERAL STRIKE GENERATES 
WIDESPREAD DISRUPTION 
 
                       UNCLASSIFIED 
 
PAGE 02        ROME  05131  02 OF 03  220544Z 
COULD IDLE 1,400) BLOCKED THE PRINCIPAL HIGHWAY CONNECTING 
ROME WITH THE ADRIATIC COAST.  MASS TRANSIT STOPPAGES AND 
UNION PROCESSIONS IN 120 CITIES CREATED WIDESPREAD 
DISTURBANCES IN URBAN CENTERS.  IN ROME, AN IMPROMPTU 
OCTOBER 17 PROTEST BY 2,000 WORKERS AND FAMILY MEMBERS FROM 
THE THREATENED SICILIAN PLANT (BUSSED IN THE NIGHT BEFORE) 
GREW TENSE WHEN POLICE PREVENTED THE PROCESSION FROM 
REACHING THE PRIME MINISTER'S OFFICE. 
 
DUELING STATISTICS 
------------------ 
 
7. (U) UNION LEADERS FANNED OUT ACROSS ITALY TO RALLY THE 
FAITHFUL AND SPEAK AT THE DEMONSTRATIONS.  FORMER CGIL 
LEADER SERGIO COFFERATI, OSTENSIBLY THE MOST POPULAR FIGURE 
WITHIN ITALY'S FRACTURED, CONTENTIOUS CENTER-LEFT 
OPPOSITION, MARCHED WITH HIS PIRELLI COLLEAGUES (AND 250,000 
OTHERS, ACCORDING TO CGIL) THROUGH MILAN JUST DAYS AFTER 
REJOINING HIS EMPLOYER FOLLOWING A 20-PLUS YEAR UNION 
CAREER.  HIS SUCCESSOR, GUGLIELMO EPIFANI, LED 200,000 OF 
THE FAITHFUL IN TURIN (HEADQUARTERS OF FIAT'S FAR-FLUNG 
HOLDINGS, INCLUDING FIAT AUTO).  RALLIES IN ROME AND NAPLES 
DREW UPWARDS OF 150,000 AND 130,000, RESPECTIVELY, INCLUDING 
MANY STUDENTS.  (NOTE: ATTENDANCE ESTIMATES REPORTED BY 
CGIL; INDPENDENT ESTIMATES HAVE NOT YET BEEN REPORTED BUT 
COULD BE LOWER).  JOINING THE PROCESSIONS WERE MOST OF THE 
OPPOSITION CENTER-LEFT PARTIES' LEADERS; SOME WITH 
CONVICTION (IN THE CASE OF COMMUNIST RENEWAL LEADER 
BERTINOTTI), OTHERS WITH A DEGREE OF PUZZLEMENT (IN THE CASE 
OF DEMOCRATIC LEFT LEADER PIERO FASSINO AND FORMER PM 
                       UNCLASSIFIED 
 
PAGE 03        ROME  05131  02 OF 03  220544Z 
MASSIMO D'ALEMA).  FASSINO URGED THE THREE CONFEDERATIONS TO 
REDEVELOP A UNIFIED POSITION, SUGGESTING THE OPPOSITION 
(ALREADY FRACTURED) COULD ILL-AFFORD DIVISIONS WITHIN ONE OF 
ITS KEY CONSTITUENCIES. 
 
8. (U) THE STRIKE WAS A ROUSING SUCCESS, EPIFANI DECLARED; 
CGIL HAD "BROUGHT MILLIONS INTO THE STREETS" TO PROTEST THE 
GOVERNMENT'S ECONOMIC POLICIES.  THE CONFEDERATION ALSO 
CITED HIGH PARTICIPATION IN SEVERAL SECTORS, INCLUDING OVER 
50% OF TEACHERS.  PARTICIPATION WAS ESPECIALLY HIGH IN THE 
HEAVILY-INDUSTRIALIZED (AND UNIONIZED) NORTHWEST, WITH 60-70 
PERCENT REPORTED AT FIAT AUTO.  IN CONTRAST, CISL AND UIL 
DOWNPLAYED THE STRIKE'S SIGNIFICANCE, CLAIMING NO MORE THAN 
A THIRD OF THE WORK FORCE PARTICIPATED AND SUGGESTING THERE 
HAD BEEN LITTLE CROSSOVER SUPPORT TO CGIL FROM THEIR 
MEMBERS.  LABOR MINISTER MARONI CHARACTERIZED THE STRIKE AS 
"MODEST," AND EXPRESSED THE GOVERNMENT'S HOPE THAT THERE 
COULD NOW BE A BROADER DIALOGUE AMONG ALL THREE PARTNERS - 
LABOR, EMPLOYERS AND GOVERNMENT. 
 
NOW WHAT? 
--------- 
 
9. (SBU) MANY OBSERVERS BELIEVE THAT, HAVING MADE ITS POINT, 
CGIL WILL ONCE AGAIN FIND COMMON CAUSE WITH THE OTHER TWO 
CONFEDERATIONS.  IN THE WEEKS PRECEDING THE STRIKE, EPIFANI 
BEGAN HINTING AS MUCH, AVOIDING ANY SUGGESTION THE 
CONFEDERATION WOULD SET CISL AND UIL'S RENUNCIATION OF THE 
SUMMER'S LABOR PACT AS THE PRICE OF RENEWED COOPERATION. 
SEVERAL OBSERVERS POINT TO EPIFANI'S MORE MEASURED REMARKS - 
IN CONTRAST TO THOSE OF HIS COLORFUL PREDECESSOR, COFFERATI, 
                       UNCLASSIFIED 
 
PAGE 04        ROME  05131  02 OF 03  220544Z 
UNDER WHOSE LEADERSHIP CGIL CALLED THE STRIKE - AS EVIDENCE 
THAT HE IS PREPARED TO MOVE ON.  BUT THE LEADERS OF THE 
OTHER TWO CONFEDERATIONS BOTH SIGNALED THAT ANY 
RECONCILIATION WOULD DEPEND ON CGIL'S WILLINGNESS TO MOVE IN 
THEIR DIRECTION.  UIL LEADER ANGELETTI DECLARED THE STRIKE 
"USELESS; IT DIDN'T SOLVE ANYTHING," AND CISL LEADER LUIGI 
PEZZOTTA SAID HE WAS "FED UP" WITH CGIL CRITICISM OF THE 
NATIONAL LABOR PACT SIGNED IN JULY.  ANY DISCUSSION OF A 
FORMAL UNITED FRONT - SOMETHING CISL HAD BEEN ASKING 
COFFERATI AND CGIL TO DISCUSS FOR 18 MONTHS - WOULD BEGIN ON 
THE BASIS OF THE LABOR PACT, PEZZOTTA DECLARED. 
 
10. (SBU) BEHIND THE RHETORIC, THOUGH, THERE ARE SIGNS THE 
THREE CONFEDERATIONS ARE IDENTIFYING  COMMON GROUND. 
METALWORKERS FROM THE CONSTITUENT UNIONS OF THE THREE 
CONFEDERATIONS ARE DISCUSSING A COMMON STRATEGY AND TACTICS 
TO TACKLE FIAT AUTO'S RESTRUCTURING PLANS AND REPORTEDLY ARE 
CONTEMPLATING A SECTORWIDE STRIKE IN THE NEXT FEW WEEKS. 
THIS TECHNICAL-LEVEL COLLABORATION MAY LEAD TO BROADER 
DISCUSSIONS BY CONFEDERATION LEADERSHIP OF A SHARED 
FRAMEWORK.  FROM OUR PERSPECTIVE AT LEAST, THAT SHOULDN'T 
PROVE TOO HARD; BETWEEN THE PROPOSED BUDGET AND THE FIAT 
AUTO CRISIS, THERE'S PLENTY ON WHICH THE THREE 
CONFEDERATIONS SHOULD BE ABLE TO AGREE.  A UNITED FRONT 
WOULD CREATE A SMOOTHER NEGOTIATING PROCESS (THOUGH PERHAPS 
A MORE EXPENSIVE PRICE TAG) FOR THE BERLUSCONI GOVERNMENT AS 
 
                       UNCLASSIFIED 
 
                           UNCLASSIFIED     PTQ0876 
 
PAGE 01        ROME  05131  03 OF 03  220544Z 
ACTION EUR-00 
 
INFO  LOG-00   NP-00    AGRE-00  AID-00   CEA-01   CIAE-00  COME-00 
      CTME-00  DODE-00  ITCE-00  DOTE-00  ANHR-00  SRPP-00  DS-00 
      EB-00    EXME-00  E-00     FAAE-00  UTED-00  VC-00    FRB-00 
      H-01     TEDE-00  INR-00   ITC-01   LAB-01   L-00     VCE-00 
      AC-01    NSAE-00  NSCE-00  OMB-01   OPIC-01  PA-00    PM-00 
      PRS-00   ACE-00   P-00     SCT-00   SP-00    IRM-00   SSO-00 
      STR-00   TEST-00  TRSE-00  USIE-00  PMB-00   DSCC-00  PRM-00 
      DRL-02   G-00     SAS-00     /009W 
                  ------------------FC038C  220545Z /38 
R 220459Z OCT 02 
FM AMEMBASSY ROME 
TO SECSTATE WASHDC 6450 
INFO DEPT OF LABOR WASHDC 
EUROPEAN POLITICAL COLLECTIVE 
 
UNCLAS SECTION 03 OF 03 ROME 005131 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR EUR/WE AND DRL/IL 
DOL FOR ILAB/BRUMFIELD 
 
E.O. 12958: N/A 
TAGS: ELAB, ECON, PGOV, IT 
SUBJECT: OCTOBER 18 ITALIAN GENERAL STRIKE GENERATES 
WIDESPREAD DISRUPTION 
 
                       UNCLASSIFIED 
 
PAGE 02        ROME  05131  03 OF 03  220544Z 
IT TRIES TO TAME SOME OF ITALY'S STRUCTURAL ECONOMIC 
PROBLEMS WHILE PRESERVING SOME MEASURE OF INTRA-REGIONAL 
HARMONY AND, IN THE FORM OF FIAT, ONE OF THE SYMBOLS OF 
ITALY'S POSTWAR ECONOMIC TRANSFORMATION FROM CRIPPLED 
AGRARIAN NATION TO MODERN G-7 MEMBER.  CLOSER COOPERATION 
AMONG THE UNIONS, WHILE FAR FROM SUFFICIENT TO BREATHE NEW 
LIFE INTO ITALY'S CENTER-LEFT, WOULD NONETHELESS BE A BOON 
TO THE FRACTURED OPPOSITION, AS THE DIVIDE BETWEEN UNIONS 
MIRRORS AND EXACERBATES PROBLEMS WITHIN THE DEMOCRATS OF THE 
LEFT AND AMONG OLIVE TREE "COALITION" PARTIES. 
 
                       UNCLASSIFIED 
 
> 
 2002ROME05131 - Classification: UNCLASSIFIED