Italy: Developments in collectively agreed pay 2013

  • Observatory: EurWORK
  • Topic:
  • Agreements,
  • Collective bargaining,
  • Pay and income,
  • Working conditions,
  • Industrial relations,
  • Published on: 05 June 2014



About
Country:
Italy
Author:
Vilma Rinolfi
Institution:

Disclaimer: This information is made available as a service to the public but has not been edited by the European Foundation for the Improvement of Living and Working Conditions. The content is the responsibility of the authors.

Note: non applicable questions have been skipped in the national contributions

1 – General collectively agreed pay increases

1.1 Indexation of salaries

1.1.1 Is a mechanism on wage indexation in place in your country? If so, please briefly describe the main features (name of agreement/law, is it the basis for further agreements, who makes the agreements…).

The sliding-scale mechanism, a system that automatically adjusted wages to the cost of living (retail price index) and which covered all Italian employees, was abolished by the national multi-industry agreement of 31 July 1992. One year after, the tripartite agreement of July 1993 established that remuneration was to be decided through collective bargaining (IT9709212F, IT9803223F, IT9702102N). The predicted inflation rate and the real inflation rate were introduced as new reference indicators for the protection of the purchasing power of pay, to be defined at industry-wide bargaining level. On 22 January 2009, another interconfederal agreement -signed by the government and the social partners with the exception of the Cgil- introduced some reforms into the bargaining system (IT0902059I). The 2009 agreement also established a new reference indicator (the IPCA) for the protection of the purchasing power of wages, which is based on the European HICP, excluding imported energy. The new indicator is calculated by a third party, the National Institute of Statistics (Istituto Centrale di Statistica, ISTAT).

1.1.2 Please give the nominal increase in % as stated in the agreement

  • from 2012 to 2013 and
  • from 2011 to 2012.

The estimations of the expected inflation rate (IPCA indicator) are as follows:

2011 2.3% (estimation of 30 May 2011)

2012 3% (estimation of 1st August 2012)

2013 1.8% (estimation of 30 May 2013)

Source: Istat, Comunicazione 30 maggio 2013

1.1.3 What was the exact period for which the pay increase has been agreed:

  • from 2012 to 2013 (for example: 1 March 2012 – 28 February 2013),
  • from 2011 to 2012 (for example 1 March 2011 – 29 February 2012)?

In case the agreement has been made for an indefinite duration (i.e. with no period for renewal mentioned), please state this.

The above-mentioned figures are not set in any agreement, but are only to be considered as a technical element which acts as a reference for collective bargaining actors in order to establish wage increases. Any recovery of pay differentials from real inflation are implemented during the term of the sectoral National Collective Agreements (NCAs).

1.1.4 Were there any recent debates on changing the mechanism?

No

1.1.5 Were there any recent major changes to the mechanism?

No

1.1.6 Which (economic) indicators provide the basis for discussion on the amount of increase? (This could be past inflation, expected inflation, growth of labour productivity, etc.).

The indicator (IPCA) is based on the European HICP, excluding imported energy

1.1.7 Please give an estimate number of employees covered by the agreement/law.

The employees of the entire economy.

1.1.8 Please provide any additional comments.

The real inflation has shifted from the IPCA index as follows:

2011 +0.3% (real inflation 2.6%)

2012 +0.2% (real inflaction 3.2%)

Source: Istat, Comunicazione 30 maggio 2013

1.2 Central agreements or minimum increases set by government covering ‘the whole’ or major parts of the economy

In some countries major (cross-sectoral) agreements between social partners or minimum increases prescribed by government exist which cover either ‘the whole’ or major parts of the economy and serve as a basis for further agreements to be made at different levels.

1.2.1 If there is such an agreement in your country, please provide the name of the agreement.

The 2009 agreement (IT0902059I) introduced a new system to protect the purchasing power of wages.

Every three years, through sectoral national collective bargaining, the actors establish wage increases for workers based on the “Indice dei Prezzi al Consumo Armonizzati”, IPCA. This indicator is based on the European Harmonised Index for Consumer Prices, HICP, excluding imported energy. The IPCA is calculated by a third party, the National Institute of Statistics (Istituto Centrale di Statistica, ISTAT) and acts as a reference for collective bargaining actors in order to establish wage increases.

Any recovery of pay differentials from real inflation are implemented during the term of the sectoral National Collective Agreements (NCAs).

1.2.2 Who are the signatory parties of this agreement?

The most representative employer associations and trade unions, excluding Cgil (IT0902059I)

1.2.3 Is this agreement the basis for further agreements at lower levels?

Yes

1.2.4 Please indicate the nominal increase that was negotiated or set in %

  • from 2012 to 2013 and
  • from 2011 to 2012.

The estimations of the expected inflation rate (IPCA indicator) are as follows:

2011 2.3% (estimation of 30 May 2011)

2012 3% (estimation of 1st August 2012)

2013 1.8% (estimation of 30 May 2013)

Source: Istat, Comunicazione 30 maggio 2013

1.2.5 What was the exact period for which the pay increase has been agreed:

  • from 2012 to 2013 (for example: 1 March 2012 – 28 February 2013),
  • from 2011 to 2012 (for example 1 March 2011 – 29 February 2012)?

In case the agreement has been made for an indefinite duration (i.e. with no period for renewal mentioned), please state this.

The above-mentioned figures are not set in any agreement, but are calculated every year (usually between May and August) by a third party, the Istat,. The IPCA is considered to be a technical element which acts as a reference for collective bargaining actors in order to establish wage increases. Any recovery of pay differentials from real inflation are implemented during the term of the sectoral National Collective Agreements (NCAs).

1.2.6 Were there any recent major changes?

No

1.2.7 Were there any recent debates or disagreements on changes?

No

1.2.8 Which, if any, (economic) indicators provide the basis for discussion on the amount of increase? (This could be past inflation, expected inflation, growth of labour productivity, etc.);

The indicator is the IPCA

1.2.9 Please give an estimate number of employees covered by the agreement/law, including those through extension.

The employees of the entire economy.

1.2.10 Please provide any additional comments.

The real inflation has shifted from the IPCA index as follows:

2011 +0.3% (real inflation 2.6%)

2012 +0.2% (real inflaction 3.2%)

Source: Istat, Comunicazione 30 maggio 2013

1.3 Sectoral pace or trend setting agreements

In some countries major sectoral agreements serve as pace-setting agreements, i.e. the negotiated increases are then taken in other sectors as well.

1.3.1 If there is such an agreement in your country, please provide the name of the agreement.

n/a

1.4 ‘Average’ of collectively agreed pay increases as evidenced in databases or surveys

1.4.1 Is there in your country a statistical source, which allows the calculation of weighted or non-weighted averages of collectively agreed pay rises across major parts of the economy? If so, please report what was the average collectively agreed increase per annum stemming from this database (from 2012 to 2013 and from 2011 to 2012)

Yes, the calculation is performed by the Istat every month.

Name of the statistical source and weblinks:

Istat, Istituto Centrale di Statistica

Contratti collettivi e retribuzioni contrattuali - 28 January 2014

Average collectively agreed increase per annum:

From 2011 to 2012 1.5%

From 2012 to 2013 1.4%

Table 1.4: Metadata for average figures for the whole economy derived from databases

Name of the statistical source

National Institute of Statistics (Istituto Centrale di Statistica, ISTAT) - Contratti collettivi e retribuzioni contrattuali (various dates)

Weblink to the statistical source

http://www.istat.it/it/archivio/contratti+collettivi

How are the data collected? Is it a sample of agreements or a full register?

It is a sample of agreements

Are the following types of agreements covered in the database?

What is the rate of coverage of the following, in percentage terms?

Calculations of average increases

2 – Pay increases related to three sectors

This section aims to gather data on collectively agreed pay increases/pay increases set by law related to the three sectors:

  • Chemicals
  • Retail and
  • the Civil service.
  1. Is there a database which records the collective agreements for the different sectors? If such a database is available, which allows you to give an “average” of collectively agreed pay increase, please report this in the first place. If this is available, no further factsheets need to be reported.
  2. In case such an “average” figure does not exist, please report “the most important” collective agreement or pay set by law.

2.1 Outcomes of sector related pay setting: Chemicals sector

2.1.1 What was the nominal collectively agreed pay increase (a) from 2012 to 2013 and (b) from 2011 to 2012

1.8% (a)

3.3% (b)

2.1.2 To what exact periods do these changes refer?

Dec. 2012 – Dec. 2013 (a)

Dec. 2011 – Dec. 2012 (b)

2.1.3 Please describe if and how wage bargaining/setting within the sector is coordinated within the sector (i.e. sector and company level), with institutions outside the sector (e.g. peak level organisations) and possibly also across sectors.

The collective bargaining structure in Italy consists of two levels, national and decentralized (company or territorial level). The general characteristics of remuneration (basic pay, periodic increases in seniority pay and general indemnity, monthly premiums, extra monthly pay and other regular forms of pay during the year) are negotiated by the social partners at national level. Territorial or company agreements (2nd level collective bargaining) concern matters that are delegated in NCAs or by law and must regard issues that are different from the wage elements defined by the NCA. Wage increases at decentralized level should be linked to the company’s economic performance, as well as quality and competitiveness.

Table 2.1: Metadata for average figures for the chemicals sector derived from databases

Is the sample or register updated every year? For a sample: does it contain a ‘panel’ of certain agreements, which are followed over time, or are new agreements added and others left out?

It is a panel of agreements followed over time

• Agreements from different levels of bargaining (company, subsector, sectoral level).

Only Sectoral National Agreements

• Agreements made by certain unions or employers’ organisations.

No but the national sectoral collective agreements considered in the survey are the most representative in terms of numbers of employees for each economic sector. So, the agreements considered in the survey usually are signed by the most representative organisations in the various sectors.

• Agreements made within certain sectors.

The panel includes agriculture (2 agreements), manufacturing (23), private services (34) and public administration (15).

• Agreements made within specific types of companies.

No

The number of collective wage agreements in the database in relation to all collective wage agreements in the whole economy.

27%, 74 out of about 270.

The number of employees covered by the collective wage agreements listed in the database (including those through extension) in relation to all employees covered by collective wage agreements (including those through extension) in the whole economy.

Number of employees covered by the collective wage agreements listed in the database: 12,888,282 out of 17,240,000 (74.7%) in the whole economy

Are the reported averages weighted, and if so, based on which weights (for example, employees, companies, payrolls and so on)?

Yes, by the employment structure.

How are collective agreements that are valid in more than one year treated?

The panel considers when actual wage increases take place.

How are collective agreements that are valid for more than 12 months treated?

Increases are annualised.

Are agreed lump sum payments taken into account?

Yes

Are collective agreements that have not been renewed part of the average?

Yes

Any other relevant information in relation to the calculation of percentage increases?

The panel provides indexes directly rather than percentage increases. The current index basis is December 2010. Moreover, the database provides annual wage levels. Data are available on line since 2005.

In particular, the database provides the following indicators:

  • index of collectively agreed hourly rates (indice della retribuzione contrattuale oraria), basis December 2005 = 100;
  • index of collectively agreed wage per employee (indice della retribuzione contrattuale per dipendente), basis December 2005 = 100;
  • index of collectively agreed hourly rates (indice della retribuzione contrattuale oraria), basis December 2010 = 100;
  • index of collectively agreed wage per employee (indice della retribuzione contrattuale per dipendente), basis December 2010 = 100;
  • collectively agreed wage per employees – competence reference (retribuzione contrattuale di competenza per dipendente);
  • collectively agreed wage per employees – cash reference (retribuzione contrattuale di cassa per dipendente).

Name of the statistical source

National Institute of Statistics (Istituto Centrale di Statistica, ISTAT).- Contratti collettivi e retribuzioni contrattuali (various dates)

Weblink to the statistical source

http://www.istat.it/it/archivio/contratti+collettivi

How are the data collected? Is it a sample of agreements or a full register?

It is a sample of agreements

Are the following types of agreements covered in the database?

What is the rate of coverage of the following, in percentage terms?

Calculations of average increases

Which bargaining levels exist in the sector?

2.2 Outcomes of sector related pay setting: Retail sector

2.2.1 What was the nominal collectively agreed pay increase (a) from 2012 to 2013 and (b) from 2011 to 2012

2.1% (a)

2.1% (b)

2.2.2 To what exact periods do these changes refer?

Dec. 2012 – Dec. 2013 (a)

Dec. 2011 – Dec. 2012 (b)

2.2.3 Please describe if and how wage bargaining/setting within the sector is coordinated within the sector (i.e. sector and company level), with institutions outside the sector (e.g. peak level organisations) and possibly also across sectors.

The collective bargaining structure in Italy consists of two levels, national and decentralized (company or territorial level). The general characteristics of remuneration (basic pay, periodic increases in seniority pay and general indemnity, monthly premiums, extra monthly pay and other regular forms of pay during the year) are negotiated by the social partners at national level. Territorial or company agreements (2nd level collective bargaining) concern matters that are delegated in NCAs or by law and must regard issues that are different from the wage elements defined by the NCA. Wage increases at decentralized level should be linked to the company’s economic performance, as well as quality and competitiveness.

Table 2.2: Metadata for average figures for the retail sector derived from databases

Is the sample or register updated every year? For a sample: does it contain a ‘panel’ of certain agreements, which are followed over time, or are new agreements added and others left out?

It is a panel of agreements followed over time

• Agreements from different levels of bargaining (company, subsector, sectoral level).

Only Sectoral National Agreements

• Agreements made by certain unions or employers’ organisations.

No but the national sectoral collective agreements considered in the survey are the most representative in terms of numbers of employees for each economic sector. So, the agreements considered in the survey usually are signed by the most representative organisations in the various sectors.

• Agreements made within certain sectors.

The panel includes agriculture (2 agreements), manufacturing (23), private services (34) and public administration (15).

• Agreements made within specific types of companies.

No

The number of collective wage agreements in the database in relation to all collective wage agreements in the whole economy.

27%, 74 out of about 270.

The number of employees covered by the collective wage agreements listed in the database (including those through extension) in relation to all employees covered by collective wage agreements (including those through extension) in the whole economy.

Number of employees covered by the collective wage agreements listed in the database: 12,888,282 out of 17,240,000 (74.7%) in the whole economy

For chemical sector: 204.440 employees

For Manufacture of rubber and plastic products: 331,159 employees

Are the reported averages weighted, and if so, based on which weights (for example, employees, companies, payrolls and so on)?

Yes, by the employment structure.

How are collective agreements that are valid in more than one year treated?

The panel considers when actual wage increases take place.

How are collective agreements that are valid for more than 12 months treated?

Increases are annualised.

Are agreed lump sum payments taken into account?

Yes

Are collective agreements that have not been renewed part of the average?

Yes

Any other relevant information in relation to the calculation of percentage increases?

The panel provides indexes directly rather than percentage increases. The current index basis is December 2010. Moreover, the database provides annual wage levels. Data are available on line since 2005.

In particular, the database provides the following indicators:

• index of collectively agreed hourly rates (indice della retribuzione contrattuale oraria), basis December 2005 = 100;

• index of collectively agreed wage per employee (indice della retribuzione contrattuale per dipendente), basis December 2005 = 100;

• index of collectively agreed hourly rates (indice della retribuzione contrattuale oraria), basis December 2010 = 100;

• index of collectively agreed wage per employee (indice della retribuzione contrattuale per dipendente), basis December 2010 = 100;

• collectively agreed wage per employees – competence reference (retribuzione contrattuale di competenza per dipendente);

• collectively agreed wage per employees – cash reference (retribuzione contrattuale di cassa per dipendente).

At sectoral or subsectoral (branch) level (multi-employer agreement).

National Sectoral level (multi-employer agreement)

Regional level

Territorial level

At company level (single-employer agreement, including cases where more agreements cover a number of companies).

Company level

Name of the statistical source

National Institute of Statistics (Istituto Centrale di Statistica, ISTAT) - Contratti collettivi e retribuzioni contrattuali (various dates)

Weblink to the statistical source

http://www.istat.it/it/archivio/contratti+collettivi

How are the data collected? Is it a sample of agreements or a full register?

It is a sample of agreements

Is the sample or register updated every year? For a sample: does it contain a ‘panel’ of certain agreements, which are followed over time, or are new agreements added and others left out?

It is a panel of agreements followed over time

Are the following types of agreements covered in the database?

What is the rate of coverage of the following, in percentage terms?

Calculations of average increases

Which bargaining levels exist in the sector?

2.3 Outcomes of sector related pay setting: Civil service

2.3.1 What was the nominal collectively agreed pay increase (a) from 2012 to 2013 and (b) from 2011 to 2012

0.0% (a)

0.0% (b)

2.3.2 To what exact periods do these changes refer?

Dec. 2012 – Dec. 2013 (a)

Dec. 2011 – Dec. 2012 (b)

2.3.3 Please describe if and how wage bargaining/setting within the sector is coordinated within the sector (i.e. sector and company level), with institutions outside the sector (e.g. peak level organisations) and possibly also across sectors.

Bargaining in public sector takes place at two levels: national level and second-level.

The National Collective Agreements refer to each single division or area of public administration identified in specific framework agreements and regulate working and economic conditions and industrial relations. They also define the modality of second-level bargaining.

This latter takes place for each single administration or at territorial level in administrations which foresee this type of bargaining.

The collective agreements must be undersigned by trade union organizations that reach at least 51% of the representativeness of the division or at least 60% of the representativeness of the Unitary Workplace Union Structures (Rappresentanze Sindacali Unitarie, RSU) in the bargaining area in question.

Once the actors involved have defined the draft of a national collective agreement to be renewed, it must be examined by the Cabinet and the Italian Audit Office (Corte dei Conti).

If the Cabinet and Audit Office do not accept the proposal, Aran (The State Bargainbing Agency) can present a list of counter-proposals. If at that point, the proposal is again turned down, Aran re-summons the actors involved and re-opens negotiations in order to change the proposed agreement taking into consideration the points highlighted by the political bodies.

When the proposed agreement is approved by the Control Bodies, the actors are summoned by the Aran and the final version of the National Collective Agreement is stipulated.

Table 2.3: Metadata for average figures for the civil service sector derived from databases

• Agreements from different levels of bargaining (company, subsector, sectoral level).

Only Sectoral National Agreements

• Agreements made by certain unions or employers’ organisations.

No but the national sectoral collective agreements considered in the survey are the most representative in terms of numbers of employees for each economic sector. So, the agreements considered in the survey usually are signed by the most representative organisations in the various sectors.

• Agreements made within certain sectors.

The panel includes agriculture (2 agreements), manufacturing (23), private services (34) and public administration (15).

• Agreements made within specific types of companies.

No

The number of collective wage agreements in the database in relation to all collective wage agreements in the whole economy.

27%, 74 out of about 270.

The number of employees covered by the collective wage agreements listed in the database (including those through extension) in relation to all employees covered by collective wage agreements (including those through extension) in the whole economy.

Number of employees covered by the collective wage agreements listed in the database: 12,888,282 out of 17,240,000 (74.7%) in the whole economy

For retail sector: 1,947,282 employees

Are the reported averages weighted, and if so, based on which weights (for example, employees, companies, payrolls and so on)?

Yes, by the employment structure.

How are collective agreements that are valid in more than one year treated?

The panel considers when actual wage increases take place.

How are collective agreements that are valid for more than 12 months treated?

Increases are annualised.

Are agreed lump sum payments taken into account?

Yes

Are collective agreements that have not been renewed part of the average?

Yes

Any other relevant information in relation to the calculation of percentage increases?

The panel provides indexes directly rather than percentage increases. The current index basis is December 2010. Moreover, the database provides annual wage levels. Data are available on line since 2005.

In particular, the database provides the following indicators:

• index of collectively agreed hourly rates (indice della retribuzione contrattuale oraria), basis December 2005 = 100;

• index of collectively agreed wage per employee (indice della retribuzione contrattuale per dipendente), basis December 2005 = 100;

• index of collectively agreed hourly rates (indice della retribuzione contrattuale oraria), basis December 2010 = 100;

• index of collectively agreed wage per employee (indice della retribuzione contrattuale per dipendente), basis December 2010 = 100;

• collectively agreed wage per employees – competence reference (retribuzione contrattuale di competenza per dipendente);

• collectively agreed wage per employees – cash reference (retribuzione contrattuale di cassa per dipendente).

At sectoral or subsectoral (branch) level (multi-employer agreement).

National Sectoral level (multi-employer agreement)

Regional level

Territorial level

At company level (single-employer agreement, including cases where more agreements cover a number of companies).

Company level

Name of the statistical source

National Institute of Statistics (Istituto Centrale di Statistica, ISTAT).- Contratti collettivi e retribuzioni contrattuali (various dates)

Weblink to the statistical source

http://www.istat.it/it/archivio/contratti+collettivi

How are the data collected? Is it a sample of agreements or a full register?

It is a sample of agreements

Are the following types of agreements covered in the database?

What is the rate of coverage of the following, in percentage terms?

Calculations of average increases

Which bargaining levels exist in the sector?

2.3.4 Please provide any additional comments.

The economic crisis has had a direct and negative effect on the sector. In fact, due to the Decree 78/2010, the renewals of collective agreements in the public sector (and, then, all pay increases) were first suspended in 2010 until 2012 (IT1008019I) which such suspension extended later to until 2014.

3 – National minimum wages

This section aims to gather information on the developments and discussions regarding national minimum wages set by law or agreement, with respect to full adult rate and the youth rate.

3.1 What was the absolute level of the national gross minimum wage in national currency in 2012 and 2013.

In Italy there is no legal minimum wage. The interconfederal agreement of 1993 established that matters of remuneration were to be decided through collective bargaining (IT9709212F, IT9803223F, IT9702102N) so minimum sectoral pay is negotiated by the social partners in the sectoral NCA. Basic monthly salary levels (to which other forms of retribution are added such as seniority pay, indemnity, etc.) are established for every category or occupational status defined in the NCA (e.g. blue-collar workers, white-collar workers etc.)

4. Country information on wage bargaining

This section aims to update the information on wage bargaining that is available per country on the website ef/observatories/eurwork/collective-wage-bargaining/country-info?country_tid=13837 in section ‘On wage bargaining’.

4.1 Does the paragraph on Bargaining system reflect the current state? If not, please provide here an updated version.

Yes

4.2 Does the paragraph on Timing reflect the current state? If not, please provide here an updated version.

Yes

4.3 Does the paragraph on Derogation reflect the current state? If not, please provide here an updated version.

Yes

4.4 Please write a short background text (max. 150 words) on extension mechanisms in your country.

In Italy there is no extension mechanism regarding NCA norms. However there is a jurisprudential procedure that guarantees all norms regarding salary in NCAs can be extended to all the workers. In fact, art. 36 of the Italian Constitution states that workers must be guaranteed a salary which is “sufficient and able to assure the worker and family a free and dignified existence” but adds that this salary level cannot be established by law. However, for more than 50 years in all sectors, there has been a jurisprudential procedure which has resulted in judges considering a salary to have met the requirements outlined in the Constitution when it has been established in a national collective agreement stipulated by the most representative employer and trade union organizations. The national collective agreement, therefore, represents de facto the norm to be referred to for all workers and enterprises in the various sectors.

Vilma Rinolfi, Cesos

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