In July 2007, an agreement was signed by the government and trade unions concerning six fundamental areas relating to welfare, labour market and pensions. In October, the Italian trade unions organised a referendum in which all Italian workers could express their approval or disapproval of the agreement. The Italian Federation of White-collar and Blue-collar Metalworkers has criticised this agreement and encouraged its members to vote against it.
After a period of lengthy negotiations over several months, the government, professional and employer organisations together with a number of the trade unions signed an important tripartite agreement regarding welfare, the labour market and pensions on 23 July 2007 (IT0712029I).
The July agreement, which lays the basis for an Italian system of ‘flexicurity’, has provoked strong reactions in the political and social arena in Italy. Furthermore, the protocol represents a ‘social pact’, illustrating and influencing the relationship among the actors involved.
Process leading to agreement
Signature of social partners
The agreement drafted in July 2007 has been through an extended procedure of signature by the social partners.
The Italian Confederation of Workers’ Trade Unions (Confederazione Italiana Sindacati Lavoratori, Cisl) and the Union of Italian Workers (Unione Italiana del Lavoro, Uil) were the first to undersign the agreement on 23 July. According to the Confederal Secretary of Cisl, Giorgio Santini: ‘An important result has been reached which conciliates financial compatibility and the promotion of social equity between generations.’
The General Confederation of Italian Workers (Confederazione Generale Italiana del Lavoro, Cgil) undersigned the agreement 10 days later, on 2 August. Considerable discussion took place within Cgil, following which the confederation declared to be in favour of the agreement, but expressed certain reservations concerning certain labour market provisions of the agreement. The areas most criticised in this respect include the abolition of the social security increase for overtime, failure to cancel staff leasing and excessively ‘weak’ norms against the reiteration of fixed-term employment contracts.
On 3 August, the Confederation of Italian Industry (Confederazione Generale dell’Industria Italiana, Confindustria) approved the protocol, but expressed doubts concerning the part of the agreement referring to social security. Despite these reservations, the President of Confindustria, Luca Cordero di Montezemolo, considered the agreement should not be ‘modified in any way, in order to give (it) credibility’.
On 11 September 2007, the Central Committee of the Italian Federation of White-collar and Blue-collar Metalworkers (Federazione Italiana Operai Metalmeccanici, Fiom), affiliated to Cgil, following a proposal by its General Secretary, Gianni Rinaldini, refused to accept the July agreement. Fiom considered some aspects of the agreement to be positive, but strongly criticised the choices regarding the increase of the retirement age, the labour market and competitiveness.
Referendum
The three main trade union confederations, Cgil, Cisl and Uil, organised a referendum on the agreement in all workplaces on 8–10 October 2007. Employees, pensioners, unemployed people and workers on short-term employment contracts voted at the 3,000 voting stations set up for the event. The referendum was particularly important for evaluating consensus towards the economic and social choices of the government and the trade union organisations.
Over five million workers and pensioners participated in the referendum. Of the 5,115,054 participants, some 4,114,939 voted in favour of the agreement (81.26% of the voters), and 926,871 voted against (18.38%).
However, the results in the large metalworking companies were particularly significant – above all in Fiat’s manufacturing plants – where the agreement was refused by the majority of workers. In these companies, the campaign against the agreement by Fiom-Cgil triggered off an atmosphere of dissatisfaction regarding the increases in the cost of living and a trade union salary policy which they considered to be inadequate.
Government position
The agreement has also provoked deep divisions within the government. The extreme left-wing parties have emphasised their disapproval of the agreement, arguing that the modifications to labour market reform Law No. 30/2003 – the so-called Biagi law – were insufficient. As a result, the parties have threatened to vote against the agreement in the cabinet discussions.
Following the referendum, on 12 October, the government approved a draft bill with the aim of implementing the agreement, making certain modifications in order to find a greater consensus within the government coalition and in particular within the extreme left-wing parties which strongly criticised the agreement’s content. The social partners then met with the government to discuss these changes. Finally, on 17 October, the agreement was approved, with the addition of further minor alterations. In the evening of the same day, the government, during an extraordinary meeting, approved the draft bill which refers to the definitive agreement, with the exception of two ministers of the extreme left-wing parties.
The contents of the agreement became law, when approved by parliament at the end of November 2007.
Effects of agreement analysed
The agreement has influenced the relationships between the social partners themselves, as well as between these partners and the government and the political parties within the government coalition at the time. It has also affected the relationship between the trade union confederations and employer organisations, making it possible for them to consider exploiting this positive climate in order to change the system of national collective bargaining – a prospect that had previously been refused by Cgil.
The result of the referendum, which underlines the importance of the trade unions in Italy, has strongly reduced the influence of the extreme left-wing parties on the trade union movement, thus reinforcing the reformist component.
The clash which occurred within Cgil between the majority of members represented in the confederation and the minority group – which is closely linked to the Communist Refoundation Party (Partito della Rifondazione Comunista, PRC) and the Italian Communist Party (Partito dei Comunisti Italiani, PdCI) – has made it possible for the Cgil majority to consolidate its position and reduce the pressure exerted by these parties on the organisation. This conflict will inevitably grow due also to the breakdown in relations between the managers of Cgil who had previously been members of the Democratic Left Party (Democratici di sinistra, DS). A small minority of these managers have followed the new centre-left Democratic Party (Partito Democratico, PD), while the majority have declared that they will join a new set-up which is currently being formed to the left of this party. This clash involving the largest Italian trade union will presumably continue in the future, as the identity of the new political parties becomes clearer. For the General Secretary of Cgil, Guglielmo Epifani, these political differences will make the intermediation between the various parties even more difficult. In fact, some experts are predicting a breakaway of the left-wing supporters in Cgil.
Finally, the relationship between the government and the social partners, despite the difficulties encountered during the lengthy negotiations, should improve.
Commentary
The Prodi government, remaining on in a caretaker role until a new government is formed following elections on 13–14 April 2008, has been experiencing internal tensions and a loss of popularity. However, this government could build up more support by improving relationships with the social partners. In fact, it is in the government’s interest to continue concerting with the social partners and to consider it as the main method to adopt when making economic choices.
Vilma Rinolfi and Domenico Paparella, Cesos