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In the Italian system, collective bargaining has two main foci. It takes place both at centralized level (see national multi-industry bargaining , industry-wide bargaining ) and at decentralized level.

In the industrial sector company-level bargaining/plant-level bargaining is the level at which decentralized bargaining activity takes place (although it also includes multi-plant bargaining and the rather informal shop-floor bargaining), while in other sectors (construction, agriculture, some parts of commerce) decentralized bargaining takes place almost exclusively on a territorial basis (see provincial agreement , district agreement ). The Agreement of 23 July 1993 establishes that decentralized bargaining is the second level in the Italian bargaining structure , with industry-wide bargaining as the first level. It also provides that decentralized bargaining may occur every four years and may take place either at company level or (as an alternative) on a territorial basis.

In public sector employment the stipulated scope of decentralized bargaining covers matters which are different from and do not cover those already dealt with by national agreement, and in particular pay enhancements linked to individual and collective productivity. This is why it is possible to deem the Agreement of 23 July 1993 also applicable to employees of the public authorities. In this sector the task of defining how supplementary payments are to be fixed is entrusted to collective bargaining, while their actual allocation is decided exclusively by the managers in the public administration , who also carry responsibility for them.

Please note: the European industrial relations glossaries were compiled between 1991 and 2003 and are not updated. For current material see the European industrial relations dictionary.

Page last updated: 14 August, 2009