Renewal of agreements for over three million workers

During May and June 2008, a number of contractual negotiations were finalised, resulting in the signing of several national collective agreements in Italy. The renewed agreements concern almost three and a half million workers in temporary work agencies and in the economic activities of construction and woodworking, textiles, and hair and beauty care. Social partners expressed their satisfaction with the outcome, which furthers the principle of flexicurity.

The months of May and June 2008 were particularly successful for industrial relations in Italy. A total of five national collective agreements were signed, many of which had been out of date for months. The details of the agreements are summarised below.

National collective agreement for temporary agency workers

Signatories

An agreement covering temporary agency workers was signed on 16 May 2008 by the National Association of Temporary Work Agencies (Associazione Nazionale delle Agenzie per il Lavoro, Assolavoro) and the following trade unions: the Association of Atypical and Temporary Agency Workers (Associazione Lavoratori Atipici e Interinali, Alai-Cisl), affiliated to the Italian Confederation of Workers’ Trade Unions (Confederazione Italiana Sindacati Lavoratori, Cisl); the Union for Atypical Workers (Nuove Identità di Lavoro, Nidil-Cgil), affiliated to the General Confederation of Italian Workers (Confederazione Generale Italiana del Lavoro, Cgil); and the Association for Employment (Coordinamento per l’Occupazione, Uil-Cpo), affiliated to the Union of Italian Workers (Unione Italiana del Lavoro, Uil).

Additional benefits

The agreement, which concerns approximately 600,000 workers from 98 temporary work agencies, introduces a considerable number of innovations – particularly regarding health and safety cover. Temporary agency workers will be eligible for the following benefits:

• sick pay when they are off work due to illness or injury;

• maternity pay for a period of 180 days;

• new opportunities to obtain loans without having to offer standard guarantees such as open-ended employment contracts, work seniority or accumulated end-of-service allowance;

• the option to extend their rights to health service reimbursement to their families.

Health and safety

In order to guarantee better health and safety in the workplace, additional training related to health and safety will be provided for newly hired workers; furthermore, health and safety training courses will run every 12 months.

An integrated social security fund will be set up to cover income for workers who are out of work for a short period.

Employment contracts

Regarding the stabilisation of employment contracts, temporary work agencies have agreed to hire workers on open-ended employment contracts who have worked between 36 and 42 months with the same company or have 42 months of seniority in the same agency. Moreover, the agencies will receive state-funded incentives to encourage them to transform temporary employment contracts into open-ended contracts before reaching these limits.

The agreement strengthens the system of industrial relations through the constitution of joint committees at regional level.

National collective agreement for wood industry

Signatories

The agreement for the wood industry, concerning about 500,000 workers, expired at the end of 2007 and was renewed on 28 May 2008. It was signed by the Italian Federation of Wood, Cork Oak and Furniture Enterprises (Federazione Italiana delle industrie del legno, del sughero, del mobile e dell’arredamento, Federlegno-Arredo), and the following trade unions: the National Federation of Building, Allied Industry and Woodworkers (Federazione Nazionale Lavoratori Edili Affini e del Legno, Feneal-Uil), the Italian Federation of Construction and Allied Workers (Federazione Italiana Lavoratori Costruzioni e Affini, Filca-Cisl) and the Italian Federation of Wood, Building and Allied Industry Workers (Federazione Italiana Lavoratori Legno Edili e Affini, Fillea-Cgil).

Decentralised bargaining

This agreement provides for an average monthly salary increase of €105 and the setting up of a joint committee within six months of the signing of the agreement, which will evaluate and propose sectoral industrial relations interventions.

To promote company bargaining, which currently involves less than 10% of enterprises and 30% of workers, the social partners have agreed to organise periodical meetings at local and regional level, where they can evaluate the progress of decentralised bargaining.

Health and safety

The wood industry is second only to the construction sector for injuries and accidents in the workplace. As a result, the social partners have agreed to set up a joint committee by September 2008 which will prepare a draft agreement regarding health and safety, and protection of the environment. This document will be based on the Consolidated Act on health and safety in the workplace (IT0804039I).

National collective agreement for construction sector

Signatories

The construction sector agreement, which expired at the end of 2007, was renewed on 18 June 2008. It was signed by the National Association of Building Contractors (Associazione Nazionale Costruttori Edili, ANCE) and the following three trade unions: Feneal-Uil, Filca-Cisl and Fillea-Cgil.

The agreement, which concerns approximately 1,250,000 workers and about 350,000 companies, envisages an average monthly salary increase of €104.

Combating irregular work and safety risks

Among the priorities of the agreement are combating irregular work and the right of workers to health and safety – in a sector which is characterised by precarious and undeclared work, as well as safety risks.

Another important aspect of the agreement concerns vocational training. More specifically, a training course is planned, which will be organised by the Construction Workers Schools (Scuole Edili). Attendance at these courses will be compulsory for all labour market entrants. Refresher training courses are also anticipated for employers in matters regarding health and safety.

The agreement foresees the re-launch of activities of the provincial anti-accident bilateral bodies or joint committees and a strict limitation of the use of part-time employment contracts for workers – a form of contract which is often used to cover irregular work.

Early retirement

Furthermore, the agreement envisages the setting up of an early retirement fund for older workers. This fund will be financed through contributions from the salaries of workers in the sector.

National collective agreement for health and beauty care

Signatories

The agreement for the health and beauty care industry, which expired at the end of 2005, was renewed on 7 July 2008 and concerns approximately 200,000 workers and 126,000 enterprises. It was signed by the four craft and artisan employer organisations: the General Italian Confederation of Artisans (Confederazione Generale Italiana dell’Artigianato, Confartigianato), the National Confederation of Craftworkers and Small and Medium-sized Enterprises (Confederazione Nazionale dell’Artigianato e della Piccola e Media Impresa, Cna), the Independent Confederation of Artisan Organisations (Confederazione Autonoma Sindacati Artigiani, Casartigiani) and the Confederation of Free Italian Artisan Associations (Confederazione delle Libere Associazioni Artigiane Italiane, Claai). On the employee side, the agreement was signed by the following sectoral trade unions: the Italian Federation of Trade, Tourism and Services Workers (Federazione Italiana Lavoratori Commercio Turismo e Servizi, Filcams-Cgil), the Italian Federation of Trade Unions in Trade, Services and Tourism (Federazione Italiana Sindacati Addetti Servizi Commerciali e Affini e del Turismo, Fisascat-Cisl) and the Italian Tourism, Trade and Services Workers’ Union (Unione Italiana Lavoratori Turismo Commercio e Servizi, Uiltucs).

Redefining professional profiles

The average monthly salary increase was fixed at €95.

The agreement envisages the setting up of a joint committee which will redefine the professional classification system and introduce new occupational profiles. A new form of apprenticeship is to be established, known as the ‘professionalising apprenticeship’ (apprendistato professionalizzante), which foresees a longer training period for up to six years and the possibility of extending the apprenticeship to people aged 29 years. The agreement also stipulates that the pay of apprentices will now be linked to seniority.

In addition, the agreement allows more possibilities for enterprises to use part-time and fixed-term employment contracts. The criteria to follow for the use of these types of contract will be established through bargaining at regional level.

National collective agreement for textiles industry

Signatories

Negotiations for the renewal of the national collective agreement for the textiles industry were concluded on 9 July 2008, two months after the previous agreement expired. The social partners concerned included the Italian Federation of Various Textiles Industries (Federazione Italiana Industriali del Tessili Vari e del Cappello, TessiliVari) on the employer side and the following trade unions: the Energy, Fashion, Chemicals and Allied Industries Federation (Federazione Energia Moda Chimica e Affini, Femca-Cisl), the Italian Federation of Workers in Textiles and Leather Clothing and Footwear (Federazione Italiana Lavoratori Tessili Abbigliamento Cuoio Calzature, Filtea-Cgil) and the Italian Textiles and Clothing Workers’ Union (Unione Italiana Lavoratori Tessili e Abbigliamento, Uilta).

Restructuring

The textiles industry, which employs approximately 800,000 workers, is more affected than any other by global competition. Collective bargaining in this industry must contend with the problem of adapting and reorganising the competitiveness of companies operating in the sector. The new agreement concentrates on company bargaining, which should develop according to guidelines identified at national level but ultimately established according to the various typologies and dimensions of the enterprises concerned.

The Italian textiles industry is currently organised on a local and regional basis. Therefore, in order to boost competitiveness, the signatories of the agreement will concentrate on bargaining at this level in order to identify the future development strategies necessary to re-launch the sector.

In order to offer a satisfactory work-life balance, the agreement maintains the right of workers to choose in matters regarding overtime.

The monthly salary increase of €94 corresponds to the amount requested by the trade unions.

Reactions to new agreements

Trade unions and employer organisations have expressed their satisfaction with the innovative measures introduced in the new agreements. Above all, they are pleased that the agreements were renewed without strike action. Furthermore, the trade unions are satisfied that many of their requests, especially regarding salary increases, were accepted.

The trade unions of the temporary agency workers were particularly satisfied by the introduction of new rights and an increase in protection in what is a relatively new area of economic activity in Italy.

Commentary

Despite the difficult economic situation, the Italian system of industrial relations has amply demonstrated an ability to find shared solutions in order to make the necessary structural changes to remain competitive at international level. The success of this social partnership model has been partly achieved by adopting the European principle of flexicurity.

Vilma Rinolfi and Domenico Paparella, Cesos