Italy's Confindustria employers’ confederation held its two-yearly conference in April 2004. The theme was 'the challenge of growth' and Confindustria's outgoing president, Antonio D’Amato, made an assessment of the past four years of activity. Revitalising Italy’s competitiveness was the priority task that Mr D'Amato handed on to his successor, Luca Cordero di Montezemolo.
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Italy's Confindustria employers’ confederation held its two-yearly conference in April 2004. The theme was 'the challenge of growth' and Confindustria's outgoing president, Antonio D’Amato, made an assessment of the past four years of activity. Revitalising Italy’s competitiveness was the priority task that Mr D'Amato handed on to his successor, Luca Cordero di Montezemolo.
On 2-3 April 2004, Confindustria, Italy’s main employers’ confederation, held its two-yearly conference in Milan, focusing on the theme 'the challenge of growth'. Speeches were made to the conference on behalf of the government by Prime Minister Silvio Berlusconi, the minister of labour and social policies, Roberto Maroni, and the minister of the economy, Giulio Tremonti. Attended by 5,000 employers' delegates, the conference examined the challenges raised by the international economic situation and sought to identify the crucial features which may enable Italian industry to 'emerge stronger and more dynamic' from its current economic difficulties - a hope expressed at the conference by Antonio D’Amato in his last public speech as president of Confindustria. Having been in office since May 2000 (IT0003148N), Mr D’Amato has recently stood down, with Luca Cordero di Montezemolo appointed to replace him (IT0404101N).
The conference’s themes
The main themes discussed at the conference were as follows.
Competitiveness. According to research by Confindustria, of all European countries Italy creates the largest number of new firms every year and with the highest survival rates. However, it is also a country in which monopolies and 'activities insulated against the rules of competition' still persist. According to Mr D’Amato, the revival of investment necessary to increase the competitiveness of Italy’s industrial system requires a marked reduction in the taxes levied on businesses - a measure, he stated, which has not yet been implemented, despite the government’s promises.
Economic situation. Stagnating consumption, falling exports, and business confidence at an all-time low are, according to Confindustria, the main aspects to be taken into account when assessing Italy’s economic prospects. The director general of Confindustria, Stefano Parisi, stressed that, while consumption grew by 1.3% in 2003, productivity has undergone a 'dramatic collapse'. In 2003, labour productivity fell by 0.5%, compared with increases of 1.7% in Germany, 1.2% in the UK and 3.1% in the USA. Paolo Garonna, director of the Confindustria research department, estimated that, even if all goes well, GDP in 2004 will increase by no more than 1%, as opposed to the 1.6% forecast made in December 2003. Confindustria thus emphasised the two-fold risk of 'impoverishment' due to low productivity and low investment. Investments in Italy have fallen by 2.1% since 2003, compared with a European average decrease of 0.7% and 4% growth achieved by the USA. 'Were productivity and investment to revive', Mr Garonna said, 'productive activity would certainly recover, with a consequent improvement in consumption and living standards'.
Benchmarking. The Confindustria research department presented figures on Italy’s competitive capacity and that of the other industrialised countries. Looking at foreign direct investments (FDI) across the world, Italy’s FDI/GDP ratio continues to be among the lowest (11% for outgoing FDI and 17% for incoming FDI, compared with France’s 22% and 37%, and Germany’s 22% and 30%, respectively). The degree of internationalisation of Italy’s banking system has declined sharply, with Italy standing in fourth place in this respect behind the UK, Germany and France (2003). Compared with the other European countries, Italy still has a relatively solid productive structure based on small and medium-sized firms: these have increased in number, created employment, and contributed significantly to economic growth. On the other hand, large companies in Italy are still relatively weak and continue to shed jobs. As regards the quality of 'human capital', Italy lies below the European average, in that its labour force largely consists of workers with medium-to-low skills.
Labour market. Mr D’Amato stated that Confindustria played a vital role, through social dialogue, in achieving reform of the labour market through the enactment in 2003 of the 'Biagi law' (IT0307204F). He reaffirmed the validity of Confindustria’s decisions in this area, including support for the controversial amendment of Article 18 of Law 300/1970 (the Workers’ Statute), which regulates reinstatement for unlawful dismissals (IT0201277F). Mr D’Amato declared that he accepted full responsibility for backing such an amendment (IT0207104F) and maintained that the dispute over Article 18 during 2002 was crucial for achieving reform of the labour market.
Relations with the trade unions. Mr D’Amato declared that the present dialogue between the employers’ representatives and those trade unions willing to accept such dialogue offers 'an opportunity to undertake further reforms, from social security to welfare, which will continue to foster modernisation of the country.'
Research. Mr D’Amato reiterated the need for investment in research and reminded his audience of the objectives set by the Lisbon European Council in March 2000 (EU0004241F) to reach a level of 3% of GDP invested in research and development by 2010, whereas at present Italy invests less than 1%.
Trade unions’ comments focused in particular on future prospects for dialogue with Confindustria. Guglielmo Epifani, the general secretary of the General Confederation of Italian Workers (Confederazione generale italiana del lavoro, Cgil), expressed his hope that the change of leadership Confindustria would initiate joint discussions on the theme of innovation, since 'research, development and technological development are challenges that face us all'. The general secretary of the Italian Confederation of Workers' Unions (Confederazione italiana sindacati lavoratori, Cisl), Savino Pezzotta, hoped that 'the new president of Confindustria would establish close and important dialogue with the trade unions'.
Commentary
The current crisis of confidence in Italy cannot be resolved without the contribution of all the parties concerned: this, in short, was the message from the Confindustria conference and from outgoing president Antonio D’Amato in particular. Consequently, dialogue with the government is always necessary, but not at any price, not without demanding concrete action, and not without dialogue with the other social partners.
Hence, Luca Cordero di Montezemolo - whose election as president of the organisation was to be ratified by the Confindustria assembly on 26 May 2004 - has one priority on his agenda: establishing dialogue that involves small and large employers, in both the North and South of the country, as well as other business associations and the trade unions. Mr D’Amato’s Confindustria has sometimes been close to the Berlusconi government. Mr Montezemolo will probably not change course, although he will perhaps pursue greater autonomy.
In a number of public statements, Mr Montezemolo has affirmed the need to 're-establish good industrial relations with the unions', the implicit reference being to Cgil. Indeed, meetings with the employer 'rank and file' have evinced the firm conviction that it is preferable for businesses to deal with a strong and united trade union front, rather than one fragmented into numerous currents that even the trade union confederations themselves find impossible to control.
Finally, another important issue that Mr Montezemolo will have to face is the forthcoming round of sectoral collective agreement renewals, which employers fear will involve very difficult and costly wage bargaining. A possible response might be a revision of the collective bargaining system established by the national tripartite agreement of 23 July 1993 (IT9709212F), which some trade unionists believe to be unfit to the present challenges, whilst many industrial relations observers and practitioners maintain that it is still fundamental. The newly-elected president of Confindustria may have to address this crucial reform as well. (Cinzia Maddaloni, Fondazione Regionale Pietro Seveso)
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Eurofound (2004), Confindustria conference highlights competitiveness, article.
