A sliding wage scale, which allowed for the automatic adjustment of the salaries of Italian workers at the same rate inflation, had been extended to most industries between 1975 and 1977.
This mechanism was blamed for the persistent high inflation environment of the early 1980s, which reached a 20% annual rate and was considered an example of a wage-price spiral. In February 1984 SocialistPrime MinisterBettino Craxi issued the first of a number of decrees that aimed to strongly reduce the indexation.
A referendum to repeal these measures was promoted by the Italian Communist Party. Those voting "yes" wanted to restore the full indexation system, while those voting "no" wanted to retain the recent changes.