Unions slam new law allowing opt-outs on labour rules

Rules governing workers’ terms and conditions have been relaxed under an act passed by the Italian parliament in September 2011. The act, intended to ensure the stability of public finance and to foster economic growth, includes significant changes for labour relations. It means that local and company-level agreements can opt out of terms agreed by law and in national collective agreements on matters including working hours, contracts and the introduction of new technology.

Main points of the new law

In response to the financial crisis, the Italian parliament passed decree law no. 138/2011 (in Italian, 735Kb PDF) containing ‘additional urgent measures for the country’s financial stabilisation and development’ in September, 2011. It also contained several major changes for labour relations and has been attacked by the unions.

‘Proximity bargaining’ and opt-out clauses

Collective agreement bargaining rounds at company and local level (described as ‘proximity bargaining’ by the new legislation) will be able to opt out of a broad range of employment terms and conditions prescribed by law or a national collective agreement.

In general, collective agreements aim to:

• increase employment;

• improve the quality of employment contracts;

• introduce worker participation;

• increase competitiveness and wages;

• manage company restructuring and employment reorganisation;

• promote investment and start-ups.

Agreements are valid and binding for all the relevant employees, provided that territorial agreements are signed by the most representative trade unions at national or territorial level, or by representation structures at company level for company deals, and provided that the signatories have the required majority in the relevant bargaining unit.

Section 8 of the new Act, however, allows proximity bargaining to opt out on several issues, providing the resulting agreement still conforms to the Italian Constitution, EU norms and international requirements. The issues include:

• working hours;

• worker tasks and job classification;

• fixed-term work contracts, part-time contracts, temporary agency work;

• audiovisual equipment and the introduction of new technologies;

• hiring procedures;

• the regulation of freelance work;

• the transformation and conversion of employment contracts;

• firing employees, with some exceptions (such as discriminatory firing, pregnant workers, mothers with babies under the age of one, firing during matrimonial leave, or firing those who have requested parental or adoption leave).

• an example, an opt out clause could therefore concern the reinstatement of workers dismissed without justifiable reason as regulated by Article18 of the 1970 Labour Law 300/70 (in Italian, 43Kb PDF).

Retirement age for women

From 2014, there will be a gradual increase in the retirement age (from 60–65) for women working in the private sector. This means that by 2026 men and women in the private sector will retire at the same age.

However, in the public sector, the change is taking place overnight. The terms of the 2010 Budget Law mean that women’s retirement age will rise from 60 to 65 from 1 January 2012 (IT1007039I).

Civil Service

Civil servants who opt for early retirement will now get their severance pay two years after they leave work, instead of the current six months. Those leaving at 65, or because of seniority retirement (based on length of contribution history) will be paid six months after retirement.

Bonuses may be reduced for managers in ministries which have failed to cut spending

Holidays

Public holidays will be celebrated only on Fridays and Mondays and will be moved to these days if they fall on other weekdays, excluding Saturdays and Sundays. The only three exceptions to this rule will be 1 May, 25 April (Liberation Day), and 2 June (Republic day).

Illegal intermediation and exploitation

The crime of illicit intermediation and exploitation of workers has been re-introduced. It was once regulated by law 1369/60 but it was repealed in 2003.

Internships

Training internships can last no more than six months and participants can be only university graduates or diploma holders that have obtained their qualifications within the last 12 months.

Reactions of the social partners

The General Confederation of Italian Workers (CGIL) attacked the new measures, organising a strike on 6 September and other protests. The union has also announced it will take legal action against the use of the derogations set out in Article 8.

The Italian Confederation of Workers' Trade Unions (CISL) says the new Act is unfair from a social point of view, due to the effect it will have on the wage levels of workers.

Cisl has invited Cgil and the Union of Italian Workers (UIL) to sign an agreement confirming that trade unions will not use the derogations in matters involving individual dismissals. However, Cisl believes that other issues covered by Article 8 are compatible with the Interconfederal Agreement on Representativeness signed by Cgil, Cisl, Uil and Confindustria on 28 June 2011 (IT1108029I).

Paolo Pirani, Confederal Secretary of UIL, pointed out that the opt-out clauses can be used only with the agreement of the most representative trade unions and this is a guarantee against their improper use.

Emma Marcegaglia, President of employers’ association Confindustria ( CONFINDUSTRIA), has criticised the new law for not making any structural reforms. She added that Article 8 is in line with the agreement of 28 June and that it will allow increased collective bargaining at company level.

Sofia Sanz, Cesos