Italy's general strike yesterday millions of demonstrators onto the streets in a raucous display of protest against labour market reforms. It was a symbolic trial of strength and credibility between the right-wing prime minister, Mr Silvio Berlusconi, committed to a broad programme of change since he was elected 11 months ago, and the powerful Italian trade union movement which believes this particular reform (making it easier to dismiss certain categories of worker) would set unacceptable precedents.
Mr Berlusconi has not made sufficient progress in implementing his programme, according to many of those who gave him his electoral mandate. He has a solid majority in both houses of parliament, but has found his way blocked in cutting taxation, reorganising the public finances and investing in infrastructure by resistance from established interests. The underlying economic growth needed to fund such change has, he believes, been inhibited by the country's inflexible employment regulations. Employers are reluctant to hire more workers because they cannot get rid of them easily in a downturn.
Article 18 of the 1970 Workers' Statute allows judges to reinstate an employee in companies with over 15 workers if they deem she has been dismissed without "good cause". The government proposes no wholesale change to this, but rather to relax its application in three specific ways affecting the poorer south of Italy, companies in transition from the black economy and new workers in larger firms. The unions have rejected these changes as symbolising a wider attack on labour rights.
Shrewd observers of the Italian scene nevertheless point out that this confrontation should not be compared to Mrs Margaret Thatcher's battle with the British miners' union in the 1980s. Mr Berlusconi needs a partnership with the unions to achieve his wider programme of change; these amendments can possibly be achieved by a compromise involving the creation of a state-funded unemployment scheme for workers. Two out of the three union groups may be willing to accept such a solution if it increases their leverage in other areas. Mr Berlusconi certainly needs to deliver in coming months if he is to retain credibility with his political base.