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Cure Italy decree, conversion into law with some changes. The Conad – Auchan case

Law 27/20 – published and entered into force on 29.4.20 – converts the decree-law ‘Cure Italy’ with some changes (1,2,3). Uncertainties remain, among other things, about the situation of Auchan Italy workers.

privacy

A simplified procedure  for the communication and processing of personal data is introduced in relation to activities essential to managing the Covid-19 emergency. In the health sector, as well as in all those sectors where containment measures may or must provide specific precautions (e.g. body temperature measurement, information obligations regarding danger conditions, communications to health authorities. (4)

The rules on  privacy, recently reformed under EU regulation 2016/679, are subject to the following exemptions:

– the information on the collection and processing of personal data for monitoring purposes may be provided in a simplified form or even omitted,

– authorization for data communication between subjects directly involved in the emergency may also be granted orally.

Social shock absorbers

The trade unions are no longer required to be mandatorily consulted by employers submitting requests for ordinary wage supplementation treatment or access to the ordinary allowance with reasons ‘COVID-19 emergency’ (law 27/20, article 19.2).

Companies with production units in municipalities that are part of the first ‘red zone’ (DPCM 1.3.20, Annex 1) or that employ workers residing or domiciled in the respective municipalities (in this case, limited to those workers) may request an extension of the ordinary wage supplementation treatment or access to the ordinary allowance with reason ‘COVID-19 emergency’ for an additional period >3 months (art. 19, paragraph 10-bis).

Employees at companies registered with the Wage Integration Fund (FIS) employing on average >5 employees can benefit from the ordinary allowance. The maximum spending limit is set for the year 2020 at €5.8 and 4.4 million, respectively, for CIGO (ordinary wage supplementation fund) and ordinary allowance. These amounts are drawn from the Social Fund for employment and training (art. 19, paragraph 10-ter e quater).

Employers who have also resorted to CIGO, ordinary allowance or CIGD (wage supplementation fund in derogation) can still renew or extend fixed-term contracts, including supply contracts, without them automatically becoming permanent contracts (art. 19-bis). This provision, according to Parliament, aims to ensure job continuity for workers, favoring the extension of relationships and rehirings (or the precariousness of work?).

Ordinary treatment of wage supplementation can be requested for an additional periodbis and 7-ter).

Organizations with production units in the former ‘red zone’ – or that have employees residing or domiciled in such areas (in which case, only for these workers) can submit an application for CIGD for an additional periodbis). Within a spending limit of €7.3 million for the current year. Charged to the Social Fund for employment and training (art. 22, paragraph 8-ter).

The Lombardy Regions, Emilia-Romagna and Veneto can provide an additional derogation fund, for a maximum period of 4 weeks, in favor of the above subjects (art. 22, paragraph 8-quater), drawing from unused regional funds (art. 22, paragraph 8-quinquies).

Smart working for disabled and  caregiver family members

The possibility  to work remotely ‘until the end of the state of epidemiological emergency from COVID-19‘ is extended in favor of disabled employees or those having a person with disability within their family unit. Provided that this mode is compatible with the characteristics of the service (art. 39.1). Therefore, no right is asserted towards them. It is also worth remembering that the  condition sine qua non for the continuation or resumption of activities, already established in the Protocol 14.3.20, is the guarantee of safety for all workers against the risk of coronavirus infection. With particular attention to the most vulnerable categories of workers (due to older age, disability, multimorbidity). Under the primary responsibility of the employer.

Suspension of dismissals. The Conad – Auchan case

‘Provisions regarding dismissals collective and individual for justified objective reason’ It is the new heading of art. 46 of Cura Italia. A rule widely used by BDC SpA, a company established by Conad (51%) and WRM Groupe (Raffaele Mincione, 49%) which in 2019 acquired, according to rumors, Auchan SpA for €700 million (€4 billion turnover, €1 billion share capital, €800 million net assets, €500 million liquidity, without debts other than ordinary management. (5,6,7). The block on collective layoffs is indeed allowing CONAD to put thousands in CIGDworkers. (8)

‘What strikes is that the union accepts the fund even in a situation where sales should not decrease. Perhaps they are thinking about the aftermath and the need to negotiate layoffs with difficult counterparts. Once the blockade ends, massive collective layoffs are indeed foreseeable for many of the employees concerned following their transfer to Conad. Which is not a single company but groups many, many of which are small and family-run.’ This is the comment from our friend Luigi Corrias, labor lawyer at the Milan Bar. 

The conversion law then introduces an exception, in the case where the worker subject to dismissal, already employed under a terminated contract, is rehired following the takeover by a new contractor (by law, national collective labor agreement or clause of the same contract).

Dario Dongo and Selena Travaglio

Notes

(1) Dario Dongo.  Cure Italy Decree, the ABC. GIFT (Great Italian Food Trade). 18.3.20,  https://www.greatitalianfoodtrade.it/mercati/covid-19-decreto-cura-italia-le-misure-a-favore-di-persone-fisiche-lavoratori-e-imprese-abc

(2) Dario Dongo, Selena Travaglio.  Cure Italy, innovative startups and advertising bonus. GIFT (Great Italian Food Trade). 10.4.20,  https://www.greatitalianfoodtrade.it/mercati/decreto-cura-italia-startup-innovative-e-bonus-pubblicità

(3)  Law 24.4.20 n. 27. Conversion into law, with amendments, of the decree-law March 17, 2020, no. 18, containing measures to strengthen the National Health Service and economic support for families, workers and businesses connected to the COVID-19 epidemiological emergency. Extension of terms for the adoption of legislative decrees.  (20G00045). In Official Gazette 29.4.20 no. 110, Ordinary Supplement no. 16. In force from 29.4.20

(4) Law 24.4.20, article 17-bis

(5) Maria Antonietta Calabrò. Vatican, the one profiting from the English scandal is financier Mincione. Huffington Post. 19.10.19, https://www.huffingtonpost.it/entry/vaticano-a-guadagnare-dallo-scandalo-inglese-e-il-finanziere-mincione_it_5da893d5e4b0b5c9be4aef21

(6) Conad – Auchan acquisition: emerging thorny and little-known details that worry. GDO News. 11.11.19,  https://www.gdonews.it/2019/11/11/acquisizione-conad-auchan-emergono-dettagli-spinosi-e-poco-conosciuti-che-preoccupano/ 

(7) Luigi Rubinelli. Auchan-Conad/Margherita: 15 stores and 1,060 people in Cigs #coronavirus destined to close. Retail Watch, 15.4.20, https://www.retailwatch.it/2020/04/15/retail/auchan-conad-margherita-15-negozi-e-1-060-persone-in-cigs-coronavirus-destinati-alla-chiusura/

(8) Emanuele Scarci. Auchan puzzle, the April decree risks breaking the agreement with unions on the network. Companies in the field. 28.4.20, https://aziendeincampo.wordpress.com/2020/04/28/rebus-licenziamenti-auchan-il-decreto-aprile-rischia-di-far-saltare-laccordo-con-i-sindacati/

DARIO DONGO
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Dario Dongo, lawyer and journalist, PhD in international food law, founder of WIISE (FARE - GIFT – Food Times) and Égalité.

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