Fiom workers strike over opt-out clause

On 29 September 2010, an agreement was signed which makes it possible for employers in the metalworking industry to opt out of the national collective agreement. The arrangement was signed without Fiom-Cgil, the biggest trade union in the metalworking industry which employs more than 1.6 million people. The union wants to stay with the 2008 agreement which was approved by a referendum among workers. It has protested with a four-hour strike and a national demonstration.

Background to agreement

The industrial metalworking sector employs more than 1.6 million people in about 60,000 enterprises (Federmeccanica data (in Italian)). The metalworking sector accounts for more than 47% of the total employment in Italian manufacturing. The National Collective Agreement for Metalworking (in Italian, 1Mb PDF) is, therefore, one of the most important agreements in the Italian private sector.

The 2008 agreement (IT0802039I) was signed by all three relevant unions – the Federation of White-collar and Blue-collar Metalworkers, affiliated to the General Confederation of Italian Labour (Fiom-Cgil), the Italian Metalworkers’ Federation, affiliated to the Italian Confederation of Workers’ Unions (Fim-Cisl) and the Union of Italian Metalworkers affiliated to the Union of Italian Workers (Uilm-Uil). However, the first amendment (in Italian, 969Kb PDF) on 15 October 2009 (IT0911029I) opened, in principle, the way for employers to conclude their own company-level agreements, following the inter-confederation agreement (in Italian, 1.4Mb PDF) on the reform of the bargaining system (IT0902059I). This 2009 amendment was signed by only two of the unions, FIM and UILM, and by the Italian Federation of Metalworking Industries (Federmeccanica).

Fiom refused to sign because it wants all agreements to abide exactly by the 2008 national collective agreement which was approved by a workers’ referendum.

Tensions mounted when car manufacturer Fiat made use of the 2009 amendment and concluded its own agreement at its plant at Pomigliano. Fiom threatened to take them to court for breach of the 2008 agreement.

Sergio Marchionne, the Chief Executive Officer (CEO) of Fiat, insisted that the national agreement for 2010 should contain precise rules about deviation for the motor vehicle sector and threatened to leave Federmeccanica if this was not done.

His demands were met, and the 2010 agreement was signed on 29 September by Federmeccanica, the National Association of Plant Constructors (Assistal), Fim-Cisl and Uilm-Uil. Fiom organised a four-hour strike and a national protest on 16 October 2010.

How the opt-out works

The opt-out clause in the 2010 agreement can be applied by 13,000 enterprises that are members of Federmeccanica and Assistal. It could also protect Fiat from Fiom’s legal action over the Pomigliano agreement.

Companies are allowed to conclude their agreements:

• to support economic development and employment;

• to counter the effects of a company crisis.

Companies that opt out cannot change salaries (for example, minimum salary levels or increases in seniority payments) or inalienable worker’s rights. Any opt-out agreements will have to state clearly their objectives, duration and say which parts of the national agreement they wish to deviate from.

Signatories to the national agreement are expected to approve any company agreement availing of the opt-out. However, their silence would also be taken as tacit approval of an agreement.

The effects of the national agreement will be evaluated six months before its expiry.

Social partner reactions

Fiom, insisting on the validity of the 2008 national collective agreement, considers the opt-out agreement is illegal and a mistake because it focuses on improving company competitiveness through the worsening of workers’ rights and the reduction of labour costs rather than improvement of the quality of work and products.

In a joint press release, Fim and Uilm emphasised the importance of the agreement which provides an extra way, at company level, to defend and promote employment and to better manage company crises.

The President of Federmeccanica, Pier Luigi Ceccardi, called on Fiom to return to the negotiating table. He believes that the agreement is positive and that it helps not only enterprises in the motor vehicle sector but all enterprises that are members of the organisation.

Sofia Sanz, Cesos