Berlusconi braces for general strike over 'jobs for life' reform

Silvio Berlusconi, the Italian Prime Minister, faces one of his biggest political tests this week with the country due to grind to a halt for an eight-hour general strike tomorrow.

The extent of the work stoppage – the first of its kind in two decades – will be crucial in the battle between the government and unions over controversial labour reforms. As the strike loomed, Mr Berlusconi was chastised by the Italian employers' association for moving too slowly and lacking courage in overhauling the rigid labour market.

Tomorrow public offices, banks, schools, universities, newspapers and some supermarkets and factories will be closed for the day. Health and emergency services will provide minimum cover, and there will be only skeleton services in transport.

The strike has been called to oppose the government's plans to change Article 18 of the Workers Statute, the 1970s backbone of the country's "jobs-for-life" mentality. The clause says any worker in a company with 15 or more employees who is unjustly fired must be reinstated. The government wants this worker protection eliminated in certain cases, saying this will help job creation. While its overall impact would be negligible, it has become a question of principle and a rallying point for workers and the opposition.

Doubts about the government's determination on Article 18 and its lack of progress in general emerged at the weekend convention of Confindustria, which one year ago acclaimed Mr Berlusconi as the economic saviour of the nation. Members had expected the right-wing government to fulfil promises of lower taxes, greater labour and market flexibility, and improved roads and infrastructure.

Likening himself to Baroness Thatcher, though admitting he did not have her powers, Mr Berlusconi tried to reassure the industrialists by saying that the strike "will stop part of the country but would not stop our determination to modernise the country".

Some members of Mr Berlusconi's coalition are increasingly uneasy at digging in on Article 18, which has become a political symbol.

Sergio Cofferati is the leader of the biggest and most left-wing union, CGIL, who has become one of the most influential opponents of the Berlusconi government. "If the general strike is a success, many things could change," he predicted.

Last month more than two million people marched in Rome at a CGIL rally against the reforms. After the Red Brigade killed Marco Biagi, a government adviser, it also become a protest against terrorism.