The latest annual industrial relations report for Italy and Europe launched on 14 July 2010 analyses the two-year period 2008–2009 – a time characterised by an economic crisis that had a major impact on employment worldwide. The report, which was welcomed by the social partners, looks first at the situation in Europe and then at changes in Italy, where reform of collective bargaining in particular has led to disagreements between the three main Italian trade unions.
The two-year period 2008–2009 was one of the most complex for industrial relations since the Second World War. The economic crisis mainly hit the manufacturing sectors with a consequential loss of jobs which was not, however, always proportional to the drop in production levels. According to the report on industrial relations in Italy and Europe 2008–2009 (in Italian, 1.5MB PDF) published on 14 July 2010, redundancies were particularly high in the United States (US), the United Kingdom (UK) and, within the euro area, Spain. France, Germany and Italy were hit less by the employment crisis due to policies to reduce working hours in order to safeguard jobs.
The report, which was compiled by the Centre for Economic, Social and Labour Studies (CESOS) and commissioned by the National Council for Economic Affairs and Labour (CNEL), is divided into six sections. The analysis focuses initially on the state of industrial relations and labour costs in Europe. It then analyses the Italian situation, examining the economic and legislative scenario, the system of industrial relations, the state of the bargaining system and labour costs. In addition, this latest analysis in this series of reports published annually since 1980 has expanded to take in bargaining and concertation at a local level – a rapidly expanding area of industrial relations.
Situation in Europe
The report describes how the European social dialogue has inevitably been influenced by the economic crisis and how the social partners have played an increasingly important role in restructuring processes. During the period covered by the report, the systems of European bargaining have also led to the formulation of important agreements such as those concerning the welfare of workers’ children and violence in the workplace. Finally, the European Court of Justice has taken on a much more prominent role in the regulation of employer–employee relationships.
Systems of industrial relations vary considerably between Member States while the national systems that regulate employment partially converge.
The level of European trade union representativeness was stable during 2008–2009, particularly in the 15 EU Member States prior to enlargement in 2004 and 2007 (former EU15), with 42 million workers being members of trade unions across the 27 EU Member States (EU27) as a whole.
Situation in Italy
Economics and legislation
The crisis in Italy hit an economy that was already in difficulty, being characterised by lower levels of economic growth compared with other countries. As a result of the crisis, Italy’s gross domestic product (GDP) dropped by 1.3% in 2008 and by 5% in 2009.
The initial response sought to absorb social shock. The social partners played an important role, despite the seriousness of the crisis and the tensions between the principal trade union confederations. Concertation and, in particular, local social bargaining, became important elements of the policies adopted to maintain salary levels and in issues relating to vocational training and supplementary pensions.
Industrial relations system
The main issue during 2008–2009 was reform of the collective bargaining system. This caused considerable conflict between the three biggest Italian trade union confederations, with tension mounting between the General Italian Confederation of Labour (CGIL) on one side and the Italian Confederation of Workers’ Unions (CISL) and the Italian Union of Labour (UIL) on the other. The tension led to a breakdown of trade union unity, with the agreement of 22 January 2009 concerning reform of the collective bargaining system (IT0904029I) not being signed by CGIL (IT0902059I).
Evolution of bargaining
One of the important characteristics of 2008–2009 was the drastic reduction in the number of workers whose collective agreements had expired; this can also be linked to the considerable drop in the number of working hours lost due to conflicts and strikes.
The renewal of collective agreements in the public sector during 2008–2009 were the last to be completed before the modifications introduced by Legislative Decree 150/2009 (in Italian, 230Kb, PDF) took effect. Apart from modifying the organisation of work in the public sector (IT0810019I), this decree foresees a reduction in bargaining areas and intervenes in matters concerning national and secondary-level bargaining.
The crisis deeply conditioned second-level bargaining – at company and territorial level – which in 2008–2009 was primarily concerned with resolving occupational problems.
Basic pay remained in line with the rate of inflation, but salaries were hit due to the reduction in supplementary benefits as a result of the crisis.
Sectoral differences in salary levels remained together with variations according to age – young people receive lower salaries than adults.
Local social bargaining
The report highlights a new type of trade union activity which, primarily at local level, seeks to develop processes concerned with improving welfare. In local concertation practices, trade unions act not only as representatives in the labour market, but also as the representatives of citizens in general in matters of policy-making.
Reactions to report
The official launch of the report was attended by representatives from institutions, trade unions (confederal and autonomous) and employers (industrial and small craft trades). All the participants welcomed the report, emphasising its valid scientific basis and well-balanced analysis of a difficult and controversial period.
The discussion focused on the current problems between the three biggest Italian trade unions and the present and future effects on the Italian industrial relations system caused by the signing or non-signing of the agreement of 22 January 2009 (IT0904029I).
Vilma Rinolfi, Cesos