I: [CR]Who made that? (long)

(Example: Framebuilders:Jack Taylor)

From: "The Maaslands" <TheMaaslands@comcast.net>
Subject: I: [CR]Who made that? (long)
To: Classic Rendezvous <Classicrendezvous@bikelist.org>
Date: Fri, 25 Oct 2002 09:07:33 -0500

Stevan wrote:
> << There are many reasons things
> are farmed out for other folks to build. >>
>
> One other reason I heard involves basic Italian business economics. Once you
> hire someone, it's almost impossible to get rid of them, taxes are higher and
> there are benefits to pay (so the story went). As such, all the incentives
> are to have contract workers, not permanent employees.
> This is in my "unconfirmed hear-say" category, if anyone has something to
> add, please chime in.

In Italy, as in most of continental Europe, it is indeed vitually impossible to lay somebody off. You need major malfeasance by an employee or can show that a company is near bankruptcy before anybody can be laid off. Even then, you can't lay somebody off without paying them handsomely. Furthermore, if an employee takes home $100 after taxes, the cost to the company who is paying him/her is at least double that once you calculate the taxes paid by the employee and all the social and additional charges paid by the company. Just think of the cost of paid vacation time as a single component. Virtually all of the national collective agreements that exist in Italy, and over 90% of all employmnet is governed by such agreements, guarantee the employees at least 5 X 37.5 hour work weeks paid vacation per year. Most companies actually give 6 weeks as they work 40 hour work weeks instead. This is already a 10% supplement, then add in the 'tredicessima' or 13th monthly salary paid out in December, and you add another 8%. The tredicessima is paid to virtually all employees and harks back to a time when most families lived hand to mouth after WWII and therefore were not able to 'afford' Christmas. By obliging employers to pay an extra monthly salary in December this ensured that the families would have enough for Christmas. (Reality of course will show that this is to the benefit to the employers, but that is a long discussion)

You can also more readily work 'in black,' without paying taxes, if you are working subcontract...

Steven Maasland Moorestown, NJ

---