New development pact signed for Lombardy

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In September 2001, the Lombardy regional government and social partners signed a new employment and development pact for this region of northern Italy. The parties have committed themselves to cooperating to achieve the objectives of the pact, which covers matters such as the labour market, social cohesion, combating illegal work and promoting economic development.

The Lombardy region of northern Italy, with more than 7,600 companies, is one Europe's richest regions. The unemployment rate is below the European Union average and in some areas there is full employment.

A first employment and development pact for Lombardy was signed on 19 May 1998 by the regional institutions and social partners. A new pact signed on 14 September 2001 enriches and widens the scope of the initiatives laid down in the previous agreement and makes use of Italy's new federalist reform, which was promulgated and approved through a referendum on 7 October 2001. This reform of chapter 5 of the Italian Constitution shifts many powers to the regions. For example, regions will be able to manage directly regional tax revenues and issue laws on issues such as healthcare, education, labour regulation and safety at work. The 2001 Lombardy employment pact is thus of greater substance than the 1998 pact, as the regional authorities now enjoy greater decision-making and managerial autonomy than in the past.

The objectives set by the new pact - which involves the Lombardy regional authorities, the regional Chamber of Commerce and the most representative workers' and employers associations - are as follows:

• implementation of the new decentralising legislation and regulatory simplification;

• innovation of the methods and procedures used to elaborate regional employment programmes, and reform of the negotiations through which these programmes are drawn up (acknowledging the 'low practical quality' of existing 'territorial pacts' and 'area agreements'- IT9704203F), as well as streamlining the procedures for accessing EU funds;

• development of social cohesion through support for individuals and families, and innovation of the welfare system;

• development of labour policies aimed at preventing illegal work and at improving social integration and vocational training for non-EU immigrants, as well as supporting the role of joint bodies promoted by the social partners. Furthermore, skill development and qualification will be enhanced through intervention in the education and training system and increased job opportunities and training abroad for students and young workers; and

• economic development and improved company competitiveness, through the strengthening of infrastructures and the streamlining of administrative procedures and regional tax policies. The pact also aims to promote artisanal or cooperative small and medium-sized enterprises. Particular attention will be focused on the tourism, agricultural and food sectors in order to increase their competitiveness at international level.

The pact provides for three different information processes between the regional authorities and the social partners:

1. 'ordinary information meetings' during which the regional government will inform the social partners of the implementing measures taken to achieve the objectives set by the pact;

2. 'preventive information meetings' during which the social partners will express an obligatory but not binding opinion on the regional development programme, economic and financial planning document and annual budget. The partners will be involved in drafting the preparatory documents; and

3. 'targeted meetings', at which the regional government and the social partners will discuss specific matters. The results of these discussions will be formalised in agreements or protocols between the region and the relevant social partners.

The pact also establishes four bodies to manage the relationships among the signatories:

• a general body to examine Lombardy's economy, employment and society (Stati generali dell'economia del lavoro e della società lombarda), headed by the president of the region and composed of regional councillors and the presidents or general secretaries of the organisations which have promoted the pact or have signed up it. This body, meeting at least twice a year, will be a forum for discussions and will monitor the activities carried out.;

• a secretariat (Tavolo di segreteria), composed of the leaders of the organisations which have promoted the pact. If extraordinary meetings of the secretariart are required, called by the regional authorities or on the request of the social partners, it will be enlarged to involve the other interested parties. The secretariat will coordinate all the relationships resulting from the pact and will be in charge of the technical implementation of the results of meetings;

• thematic groups (Tavoli tematici) will be convened on specific subjects and will involve all the actors interested in the particular issue. These groups will be coordinated by the secretariat and will be able to involve other interested actors at local level; and

• local groups (Tavoli territoriali) will be set up by the regional authorities at local level, in line with the issues being discussed within the pact and with regional planning interventions. These bodies will also act as venues for the definition of training needs.

The pact was welcomed with satisfaction by all the interested partners. Carlo Borio, the general secretary of the Lombardy regional organisation of the Italian Confederation of Workers' Unions (Confederazione Italiana Sindacati Lavoratori, Cisl) said that the pact was particularly important because it 'specifies that industrial relations are not limited to discussions but involve broad spaces for concertation.'