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1. Follow-up of the discussion at the 96th Session of the International Labour Conference (June 2007). Subsequent to its 2006 observation, the Committee notes the conclusion of the tripartite discussion that took place at the Conference Committee in June 2007. The Conference Committee invited the Government to pursue its national programmes for full and productive employment, the promotion of decent work and high-quality work for all, as required by the Convention. Replying to requests by the Conference Committee and the 2006 observation, the Government supplied in August and October 2007 comprehensive information in which it confirms its intention to reduce temporary and part-time employment contracts by imposing time limits on such contracts, in order to facilitate workers obtaining permanent employment contracts. The Committee welcomes this approach and encourages the Government to continue providing information in its next report on the manner in which the objective of full and productive employment has been taken into account in the formulation of economic and social policy. It would also appreciate continuing to receive information on the experience of the social partners in regard to the application of the Convention.

2.  Articles 1 and 2 of the Convention. Employment trends and active labour market policies. The Government provided data indicating that, although the unemployment rate continued to decline, figures from the first quarter of 2007 show that there was a slowdown in employment growth after a sustained growth in 2006. Also, an increase in employment in the north and centre regions in 2006 was noted while observing a decrease in the south for this same period. Measures were taken to combat clandestine work which resulted in 94,000 workers in the construction industry being added to the legal registers. Also, the status of 22,000 call centre workers changed from self-employed persons to workers with an employment contract. Amendments to Act No. 30 of 2003 were adopted through the Finance Act 2007 and Decree-Law No. 223/2006 including other measures geared at encouraging growth and employment, combating illegal work and promoting safety in the workplace. Provisions included increasing tax deductions for corporations employing workers with an indefinite-term contract of employment and actions to suspend work on construction sites where illegal workers are employed. In this regard, the Committee asks the Government to provide further information on the effects of legislative and other measures adopted to promote employment and, more specifically, on closing the gap between the various regions of the country as to the levels of employment.

3. Means to promote youth employment. The Government raised the minimum age from 15 to 16, and provided additional financing for vocational training and the training of apprentices. It also intends to pass legislation directed at combating youth unemployment. The proposal for future legislation includes measures such as facilitating access to funding for young entrepreneurs as well as easing the transfer of small businesses from one generation to the next. Also, Decree-Law No. 223/2006 established a Youth Policy Fund that aims to promote the right of young people to cultural and vocational training and that creates measures to facilitate access to credit. The Committee notes the 2006 ISTAT labour force survey indicating that 21 per cent of students leave school prematurely. Some 900,000 people left school prematurely with a disproportionate percentage of school leavers in the south compared to the north or centre. Moreover, school leavers in the south typically do not enter the labour force in contrast to those in the north and centre who tend to be early entrants into the labour force. The survey also indicated that males tend to leave school at a higher rate than females. In this regard, the Committee asks the Government to include in its next report information on how recently adopted measures, geared at combating youth unemployment, have translated into lasting employment opportunities  for young workers entering the workforce.

4. Women and other specific categories of vulnerable workers. The Committee notes that the Government has indicated its intention to continue with the implementation of measures to promote employment of women under the Finance Act of 2007 which includes tax incentives for the employment of women on indefinite-term contracts in the south of the country. The Government has taken measures to encourage the re-employment of workers over 50. In particular, it has enacted legislation to create the possibility of “solidarity between generations” agreements whereby those over 55 may voluntarily convert from full-time to part-time status, with unemployed young persons under 25 permitted, under a part-time contract, to work the number of resulting hours. The Committee notes with interest this innovative approach and asks the Government to provide in its next report detailed information on the impact of measures designed to encourage and support employment levels of vulnerable categories of workers such as women and older workers.

5.  Article 3. Participation of the social partners in the formulation and application of policies. The Government reports that social dialogue and consultation was reinforced with the social partners, at both the local and national level, by establishing permanent consultative round tables. It indicates that interaction with the social partners in the numerous consultative round tables on welfare, protection of the labour market and growth has been decisive in defining the problems encountered. The Committee trusts that the Government will continue to provide information on the consultations held with the social partners including details of their contribution to the implementation of an active employment policy within the meaning of the Convention.