D.L. 23/2020 was published in the Official Gazette on 8 April. It contains credit and tax support measures for Italian companies (“Liquidity Decree”). The measures include government guarantees on loans from banks where companies have signed loan agreements. The guarantee is provided by a company 100% controlled by the Ministry of Economy and Finance (“SACE S.p.a.”). Companies must agree “to manage employment levels through union agreements” as one of the conditions. Even if the Government’s approach is not perfect, the legislation clearly states that companies requesting this guarantee must manage surplus employees with a union agreement. It also raises numerous interpretation problems. There are (i) no indications on the representation requirements for unions that can sign these agreements, and (ii) no indications useful for identifying the hypothetical agreement subject, (iii) the meaning of “manage employment levels” is not clear and (iv) the consequences for failure to reach a union agreement are not mentioned. We hope explanations are forthcoming when it becomes law.
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