For more than 25 years, Italy’s industrial relations report has acted as a point of reference in the debate between the country’s social partners. The report for 2006–2007 was presented in February 2009 and analyses the important aspects of industrial relations in Italy, considering the situation in a European context. The report also looks at collective bargaining structures as well as wages and labour costs. Overall, the social partners have welcomed the report.
On 24 February 2009, the National Council for Economics Affairs and Labour (Consiglio Nazionale dell’Economia e del Lavoro, Cnel) formally presented the report on Industrial relations in Italy and Europe – Wages and labour costs (in Italian) for the two-year period 2006–2007. The report was commissioned by Cnel and compiled by the Centre for Economic, Social and Labour Studies (Centro di Studi Economici Sociali e Sindacali, Cesos).
Contents of report
The industrial relations report 2006–2007 is divided into four sections, the details of which are outlined below.
European context
The report begins by analysing the development of industrial relations in Europe and reveals ongoing trends that are reducing traditional forms of trade union protection. It also looks at the difficulties encountered by the industrial relations system in reaching effective decisions for the various actors involved in social dialogue. The reasons for these trends include the reduction in trade union representativeness, national collective bargaining and salaries, and an increase in tensions and conflict.
Industrial relations in Italy
The second section of the report analyses industrial relations in Italy, which experienced a less serious crisis compared with the rest of Europe during the period 2006–2007. In fact, representativeness remained at the previous levels. However, it must be noted that the majority of trade union members were pensioners. The effectiveness of trade union action was seriously tested due to pressing social problems such as a rise in poverty, the crisis in the health system and an increase in immigration. These issues received a less prominent position on the agenda of the trade union organisations.
Relations between the representative organisations of employers and workers remained positive and the presence of the bilateral bodies was widespread at both national and regional level.
The use of tripartite concertation over the two-year period of analysis increased slightly, favoured by a slight economic upturn, by a reduction in tensions between the employer and trade union confederations and by the fact that the government in office at that time had indicated concertation as one of its priorities. In the 2006–2007 period, a number of important agreements were reached: these include the agreement of 23 July 2007 which corrected the previous reform regarding pensions (IT0710029I, IT0712029I), along with the protocol which commits the social partners to modernising the public administration (IT0702039I).
Collective bargaining concentrated principally on three problems: the increase in inflation and the mechanisms to help recuperate the purchasing power of wages; the low level of pay; reduced productivity levels and the resulting increased influence of the cost of labour on the competitiveness of enterprises and the possibility to raise salary levels.
Collective bargaining structures
The third section of the report examines changes in the collective bargaining process both at national and local levels. The following issues were prominent among those raised by the various institutions that participated in collective bargaining: health and safety at the workplace, job classification, productivity premiums, the regulation of flexible and general working hours, vocational training, the regulation of apprenticeship and work-entry contracts, as well as the promotion of welfare institutions.
The structure of bargaining assets was also negotiated in two important national collective agreements. The metalworking agreement introduced a system of equalisation of pay for employees in enterprises that have no form of company bargaining (IT0602301F). The agreement in the chemicals sector introduced a procedure which makes it possible for a single enterprise, in specific circumstances, to bypass norms foreseen in the national collective agreement in the sector (IT0707029I).
Labour costs in Europe and Italy
The fourth part of the report analyses salaries and labour costs. In the 2006–2007 period, salary levels remained relatively constant. Through collective bargaining, it was not possible to redistribute the benefits gained from an increase in productivity. In fact, Italian salary levels in real terms have remained at the same level since the beginning of the 1990s.
An analysis of Italian pay levels reveals considerable differences between the various manufacturing sectors. For example, in the energy sector, pay levels were 20%–30% higher than the national average, while in other more traditional sectors, such as the textiles sector, pay levels were 30%–40% lower than the national average.
The average monthly salary levels of women in 2006–2007 were almost 25% lower than those of men. Workers on atypical employment contracts also had lower salaries, while the historical differences at regional level persisted.
Reactions to report
Representatives of various institutions, craft and industrial enterprises, and confederal and autonomous trade unions participated in the congress at which the report was presented. All of the participants welcomed the objectiveness of the report and the detailed analysis of the various matters considered, which provided the basis for a solid debate between the social partners.
Commentary
The report highlights the health and vitality of the Italian system of industrial relations, which is an important instrument for the social partners.
Vilma Rinolfi and Domenico Paparella, Cesos