Download article in original language : IT0506101NIT.DOC
In May 2005, Confindustria, Italy’s main employers’ association, held its annual assembly. Its president, Luca Cordero di Montezemolo, launched a warning on the future of the country’s industry. Economic recession, re-launch of competitiveness, tax reforms and collective bargaining system are some key issues in his address.
On 26 May 2005, Confindustria, the largest Italian employers’ confederation, which represents the main Italian industrial companies, held its annual assembly in Rome. The assembly saw the participation of about 3,000 employers, many representatives of the government and of the opposition and the main representatives of the trade unions.
The president of Confindustria, Luca Cordero di Montezemolo, presented a very critical address against the government activities, the Italian bank system and against the trade unions. Mr. Montezemolo underlined, more than once during his address, Italy’s situation of economic recession and the fact that Italy is 'seriously stepping back in a phase of global economic improvement (…) the country needs therefore immediate, brave and probably unpopular choices, able to face the current emergency'.
Mr. Montezemolo criticised the political forces and urged them to 'leave aside electoral interests and to concentrate their efforts on the dramatic situation of the public expenditure and, above all, on the problems of the Italy’s loss of competitiveness'. Criticisms were also voiced against those politicians of the majority which blame the Pact of Stability and the introduction of the Euro for Italy’s economic problems. The president of Confindustria believes that 'only a well-functioning Europe will be able to compete with the other economic giants and this cannot take place if the nationalistic logics prevail'.
The employers insist, on behalf of Montezemolo, asking for the reduction of the regional tax on productive activities (Imposta regionale sulle attività produttive, Irap) not because they aim to increase their profits but in order to sell a greater number of products at more competitive prices. Employers are convinced that the reduction of Irap should not jeopardise the already problematic State balance, this is why they propose to shift the fiscal drug from direct to indirect taxes, i.e. from the labour costs to consumption.
According to the President, everybody should contribute to increase the competitiveness of Italian companies otherwise the wage increase by themselves would only lead to future redundancies. The proposal put forward to the government, the opposition, to the trade unions and to the institutions in general, but also to the citizens, is to make a common effort to face the emergency, a sort of 'pact among citizens to re-built Italy'.
Mr. Montezemolo in his address dealt also with the difficult renewal of the national collective agreements for the workers of the metalworking and public sector and expressed his disagreement with these kind of renewals which 'cost a lot to the State finances without improving the quality of the service provided'. Confindustria’s president invited the trade union to resume unity and to set up a model of collaborative industrial relations in order to avoid interrupting the dialogue with the employers and announced the preparation of an important and innovative document on industrial relations which will be presented as a starting point for the discussion about the renewal of the industrial relations system, the bargaining system and the wage policy.
Diverging opinions followed the address of Mr Montezemolo, especially among the political leaders.
According to the vice prime minister, Gianfranco Fini, 'Montezemolo is too intelligent to disregard the fact that in such a difficult economic situation Confindustria has its part of responsibilities and, this omission, makes his address and analysis vitiated by party’s interests'.
Romano Prodi, leader of the opposition, appreciated the analysis of Mr Montezemolo and expressed his consent and compliance with the realistic picture of the country, which does not hide any problem of the country but presents realisable solutions.
The trade unions, partially attacked by the President of Confindustria reacted in a different way.
Guglielmo Epifani, secretary general of General Confederation of Italian Workers, (Confederazione generale italiana del lavoro, Cgil), asked for a greater commitment of companies about wages, workers’ conditions and precariousness. Mr Epifani, nevertheless, express his favourable opinion about Mr Montezemolo address on the shifting the attention on the Mezzogiorno, on 'the importance of having market rules and on their respect, on the fight against tax evasion and on the respect of the law'.
Savino Pezzotta, secretary general of the Italian Confederation of Workers’ Unions (Confederazione generale sindacato lavoratori, Cisl), declared that his confederation is ready to face the challenge of a new industrial relations system but pointed out that 'also Confindustria should be more brave and consistent whit its choices'.
The leader of the Union of General Labour (Unione generaledel lavoro, Uil), Luigi Angeletti, expressed his satisfaction with almost all the President address with the only exception of the part concerning the contract renewals. According to Mr Angeletti 'there is no need to shift the tax burden from labour to consumption'.
This information is made available through the European Industrial Relations Observatory (EIRO), as a service to users of the EIROnline database. EIRO is a project of the European Foundation for the Improvement of Living and Working Conditions. However, this information has been neither edited nor approved by the Foundation, which means that it is not responsible for its content and accuracy. This is the responsibility of the EIRO national centre that originated/provided the information. For details see the "About this record" information in this record.