Unions propose European-level collective agreements

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According to Sergio Cofferati, general secretary of Italy's Cgil trade union confederation, EU Economic and Monetary Union may have major consequences for industrial relations, as the importance of the supranational level is bound to increase. For this reason, in May 1998 Mr Cofferati suggested the introduction of European-level collective agreements, provoking a hostile reaction from employers.

Debate in Italy on EU Economic and Monetary Union (EMU) has so far concentrated on its effects and consequences on the economy and the production system.

As far as economic policy is concerned, since the early 1990s the goal of EMU has meant that priority has been given to reduced public spending and the curbing of inflation. This has led to a radical revision of government economic policies which, especially in the 1980s, were characterised by a marked expansion of public expenditure.

As regards the production system, EMU will reduce the opportunities for firms to obtain competitive advantages from currency devaluation - a strategy favoured mainly by firms which are less innovative in terms of both products and processes. Moreover, the constraints of containing costs and increasing competitiveness will grow increasingly tight. The employers' associations have declared that increased competitiveness of Italy's productive system will require further deregulation of the labour market, investments in infrastructure, reform of the public administration, and a reduction of the tax burden.

Going beyond these economic and production concerns, a proposal from the general secretary of the Cgil trade union confederation, Sergio Cofferati, has opened the discussion on the consequences of EMU on industrial relations. Mr Cofferati raised the issue in a speech given in early May 1998, which received wide coverage in the media.

European-level collective agreements

According to Italian trade unions, EMU will have repercussions on industrial relations, even though this is not an area specifically addressed by the EU Treaties. Mr Cofferati has raised a number of issues of extreme importance for the strategies to be pursued by unions in the future. EMU will pose new challenges which the unions will be forced to address in terms of both their activity and their organisational structure.

As far as trade union activity is concerned, Mr Cofferati maintains that the unions must prepare themselves to play a more active role at the European level. More specifically, they must press for the introduction of uniform labour legislation in all the European countries, while also addressing the question of the introduction of European-level collective agreements. Hence, although this process will take some time (at least 10 years), the supranational dimension will acquire greater importance with regard to labour protection and representation - two areas today characterised by marked differences between countries.

Organisational changes within the unions themselves will also be required, according to Mr Cofferati. He envisages in particular the transfer of more competences to the European Trade Union Confederation (ETUC).

Responses

The reactions to Mr Cofferati's proposals have been rather critical, especially on the part of the Confindustria employers' confederation, which has declared that the introduction of Europe-wide agreements would conflict with the flexibility needs of individual firms. Moreover, the bargaining system across Europe is extremely heterogeneous. According to some members of Confindustria, redefinition is instead required of the structure of labour costs, given the high level in Italy, compared with other European countries, of fiscal pressure on firms.

The Minister of Labour, Tiziano Treu, is more confident. He points out that there are already examples of normative agreements defined at the European level. It would be premature, however, to introduce outright Europe-wide agreements which would cover economic (ie pay-related) matters as well. Nevertheless, the possibility cannot be ruled out in the future.

It remains to be seen to what extent Mr Cofferati's proposal to introduce European-level bargaining will be taken up, when the assessment starts by the social partners of Italy's tripartite central agreement of 23 July 1993 (IT9803223F). Indeed, one of the items on the agenda in the review of the agreement is the division of the bargaining structure between the national and the company level.

Commentary

The process of EMU will have consequences for industrial relations, though it is not yet clear what form these consequences will take. Some commentators question the ability of nation states to manage and govern their economies, as a result of globalisation as well as EMU, and point out the increasing diversification of sectors, regions and firms. This will reinforce the tendency towards the decentralisation of bargaining.

However, the supranational level seems to be becoming increasingly important. There are already signs of this happening, with a case in point being the introduction of European Works Councils. Moreover, talks between the social partners at the European level have led, for example, to agreements on issues such as parental leave (TN9801201S).

The growing importance of the transnational level, however, also requires strengthening of the representative organisations of both workers and employers at the European level. Especially necessary is a definition of the relationships between the representative organisations at the various levels (company, local, national, and international).

It is undoubtedly premature to talk of European-level collective bargaining. Nevertheless, the attention given to the social dimension of EMU raises the question of a reinforcement of the role of the social partners at the European level. The problem lies in finding a way to reconcile the apparently contradictory tendencies towards the decentralisation of bargaining and the reinforcement of the transnational dimension. (Marco Trentini, Ires Lombardia)