Food System

Cure Italy decree, conversion into law with some amendments. The Conad – Auchan Case

May 4, 2020

Law 27/20 – published and entered into force on 4/29/20 – converts the ‘Cure Italy’ decree-law with some amendments (1,2,3). Uncertainties remain, among other things, about the situation of Auchan Italia workers.

Privacy

A simplified procedure for the communication and processing of personal data is introduced in connection with activities essential for handling the Covid-19 emergency. In health care, as well as in all areas where measures to contain contagion can or should include appropriate precautions (e.g., body temperature measurement, information requirements regarding dangerous conditions, communications to health authorities. 4,5,6).

The privacy rules, which were recently reformed with reg. EU 2016/679, (7) are subject to the following exceptions:

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

– authorization for data communication among those directly involved in the emergency may be given even if only orally.

Social shock absorbers

Trade unions should no longer be compulsorily consulted by employers filing applications for ordinary wage supplementation treatment or access to ordinary allowance with ‘COVID-19 emergency‘ causes (Law 27/20, Article 19.2).

Companies with production units in municipalities that are part of the first ‘red zone’ (Prime Minister’s Decree 1.3.20, Annex 1) or employ workers with residence or domicile in the relevant municipalities (in which case, limited to such workers) may apply for an extension of the ordinary wage supplement treatment or access to the ordinary allowance with causal ‘COVID-19′ emergencyfor an additional period >3 months (Art. 19(10a).

Employees at enterprises registered with the Wage Supplementation Fund (SIF) that employ an average of >5 employees are eligible for the ordinary allowance. The expenditure ceiling is set for the year 2020 at €5.8 million and €4.4 million, respectively, for CIGO (ordinary income support fund) and ordinary allowance. These sums are drawn from the Social Fund for Employment and Training (Art. 19(10b ) and ( c).

Employers who have also made use of CIGO, ordinary allowance or CIGD (cassa integrazione guadagni in deroga) can still renew or extend fixed-term contracts, including staffing contracts, without automatically turning them into open-ended contracts (Art. 19-bis). This provision, according to Parliament, aims to ensure continuity of employment for workers by encouraging relationship extension and re-hiring (or job insecurity?).

Ordinary wage supplement treatment can be claimed for an additional period <3 months (within spending limit of a € 0.9 million for 2020) also employers with production units in the first ‘red zone’ who, as of 23.2.20, have already resorted to CIGS. Drawing, again, on resources from the Social Fund for Employment and Training (Art. 20, paragraph 7-bis and 7-ter).

Organizations with production units in the former ‘red zone’-that is, with employees residing or domiciled in such zones (in that case, only for said workers) may apply for CIGD for an additional period <3 months from 23.2.20 (Art. 22(8a). Within an expenditure limit of € 7.3 million for the current year. From the Social Fund for Employment and Training (Art. 22(8b).

The regions of Lombardy, Emilia-Romagna and Veneto may provide an additional cassa in deroga, for a maximum period of 4 weeks, for the benefit of the above individuals (Art. 22, para. 8-quater), drawing from unused regional funds (Art. 22(8-quinquies).

Smart working for disabled people and family caregivers

The ability to work remotely ‘until the end of the state of epidemiological emergency from COVlD-19′ is extended for the benefit of employees with disabilities or having a person with a disability within their household. Provided that this mode is compatible with the characteristics of the service (Art. 39.1). Therefore, no rights are asserted against them. It should also be recalled that the sine qua non for the continuation or restart of activities, already established in Protocol 14.3.20, is the guarantee of safety of all workers with respect to the risk of coronavirus infection. With special attention to the most vulnerable categories of workers (due to greater age, disability, multimorbidity). Under primary responsibility of the employer. (8)

Suspension of layoffs. The Conad – Auchan Case

‘Provisions on collective and individualdismissals for objective reasons’ is the new heading of Art. 46 of Cura Italia. A rule that BDC SpA, a company formed by Conad (51 percent) and WRM Groupe (Raffaele Mincione, 49 percent), which in 2019 bought Auchan SpA (€ 4 billion in sales, € 1 billion in share capital, € 800 million in shareholders’ equity, € 500 million in cash, with no debts beyond those of ordinary operations, according to rumors, has made extensive use of. 9, 10, 11). The freeze on collective layoffs is in fact allowing CONAD to put thousands of workers into CIGD. (12)

‘What is striking is that the union is accepting the checkout even in a situation in which sales should not be falling. Perhaps they are thinking about the later and the need to be able to bargain over layoffs with difficult stakeholders. Indeed, once the lockout ends, massive mass layoffs can be expected for many of the employees in question as a result of their transition to Conad. Which is not a single company but groups many, many of which are small and master’. This is the comment of our friend Luigi Corrias, a labor lawyer with the Milan Bar.

The conversion law then introduces an exception, in the event that a worker who is the recipient of a layoff, already employed under a terminated contract, is rehired as a result of a new contractor taking over (by virtue of law, national collective bargaining agreement or clause in the same contract).

Dario Dongo and Selena Travaglio

Notes

(1) Dario Dongo.
Decree Cure Italy, 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 no. 27. Conversion into law, with amendments, Of the decree-law of March 17, 2020, no. 18, on measures to strengthen the National Health Service and provide economic support for families, workers and businesses related to the epidemiological emergency from COVID-19. Extension of deadlines for the adoption of legislative decrees. (20G00045). In OJ 29.4.20 no. 110, Ordinary Supplement no. 16. Effective as of 4/29/20

(4) Law 24.4.20, Article 17-bis.

(5) Amaranta Traversa et al. Covid-19 and occupational safety. Protocol 24.4.20. GIFT (Great Italian Food Trade). 1.4.20. https://www.greatitalianfoodtrade.it/sicurezza/covid-19-e-sicurezza-sul-lavoro-protocollo-24-4-20-labc/

(6) Dario Dongo et al. Living with Covid-19. DPCM 26.4.20 opens phase 2. GIFT (Great Italian Food Trade). 3.5.20, https://www.greatitalianfoodtrade.it/sicurezza/convivere-con-covid-19-il-dpcm-26-4-20-apre-la-fase-2

(7) Fabio Zaninetti, Dario Dongo.
Privacy and GDPR, the ABC’s
. GIFT (Great Italian Food Trade). 3/20/19, https://www.greatitalianfoodtrade.it/consum-attori/privacy-e-gdpr-l-abc

(8) Dario Dongo.
Covid-19, worker safety and employer liability.
. GIFT (Great Italian Food Trade). 3/17/19 , https://www.greatitalianfoodtrade.it/sicurezza/covid-19-sicurezza-dei-lavoratori-e-responsabilità

(9) Maria Antonietta Calabrò.
Vatican, gaining from British scandal is financier Mincione
. Huffington Post. 10/19/19, https://www.huffingtonpost.it/entry/vaticano-a-guadagnare-dallo-scandalo-inglese-e-il-finanziere-mincione_it_5da893d5e4b0b5c9be4aef21

(10) Conad – Auchan acquisition: thorny and little-known details emerge of concern. GDO News. 11.11 .19 , https://www.gdonews.it/2019/11/11/acquisizione-conad-auchan-emergono-dettagli-spinosi-e-poco-conosciuti-che-preoccupano/

(11) Luigi Rubinelli.
Auchan-Conad/Margherita: 15 stores and 1,060 people on Cigs #coronavirus destined for closure
. 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/

(12) Emanuele Scarci.
Auchan rebus, April decree threatens to blow up agreement with unions on network
. Companies in the field. 4/28/20, https://aziendeincampo.wordpress.com/2020/04/28/rebus-licenziamenti-auchan-il-decreto-aprile-rischia-di-far-saltare-laccordo-con-i-sindacati/