Labour Law, Trade Unions and Collective Bargaining in Italy

1. Labour Law, Trade Unions and Collective Bargaining in Italy

2. Labour Law, Trade Unions and Collective Bargaining in Italy • Employment and labour market in Italy • The Labour Law in Italy • Trade Unions in Italy • The collective bargaining (levels, actors and problems)

3. Employment and Labour Market in Italy • Increasing level of atypical and temporary workers • High percentage of workers employed in micro-enterprises (48% in industry) • Gender inequality • Big differences between South and North • Informal (15-18% of GDP in 2006) and Illegal Economy (about 10-15% GDP)

4. Characteristics of Employment in Italy • Total Employed 2007: 23,222 • Agriculture: 923 • Industry: 6,806 • Services: 12,703 • Temporary workers: 2,421 • Atypical workers (dependent, not self employed):1,570 • Interns: 620 • Unemployed rate:6,2% • Average number of workers for enterprises: 3,9 (EU:6,6) Sources ISTAT, 2008

5. The Labour Law in Italy 1 Constitution (1948) Art 18 (freedom of association) • Citizens have the right freely and without authorization to form associations for those aims not forbidden by criminal law. • Secret associations and associations pursuing political aims by military organization, even if only indirectly, are forbidden. Art. 39 • The organisation of trade unions is free. • No obligation can be imposed on trade unions other than registration at local or central offices, as provided by law. Trade unions are only registered on condition that their by-laws lead to internal organisation of democratic character. Registered trade unions are legal persons. Being represented in proportion to their registered members, they may jointly enter into collective labour contracts which are mandatory for all who belong to the categories referred to in the contract. Trade Unions refused the registration because of the risk of loose independency. De facto the second paragraph of the art.39 is not applied. This choose influenced the legal nature or value of the national collective contracts/agreements

6. The Labour law in Italy 2 Art. 40 The right to strike is exercised according to the law • The Law (L. n. 146 12/6/1990, L.n.83, 11/4/2000) establishes limitation to the right to strike related to those services that guarantee life, health, education, right to circulation. The Trade Unions have to inform about the strike at least ten days before, indicating the duration and the modalities of the strike. • A Commission set up by the Government has the right to control the application of these Strike Laws • The worker can never be fired for a strike (even if the strike is not organised respecting the Laws) • There is no union strike fund • Employers don’t have the right to strike (close up the company) WORKERS STATUTE, 1970 (L. n.300, 7/5/1970) • Contents: workers rights (freedom of thinking and expression, non discrimination, rights for the workers students), “right procedures of dismissal”, FoA, collective bargaining, prohibition of anti trade unions behaviours, election of TU’s representatives • Attempts to reform the Statute have been recently carried out (art. 18, 2003, great mobilization organized by the trade unions) No minimum wage law: TUs prefer negotiating directly with the employers. The CBAs establishe the level of wages in a certain trade

7. Trade Unions In Italy: history • The origins: Mutual Help Associations • 1906: CGDL (the first Trade Union) • Fascism: corporative trade union • In 1945 a free trade union was rebuilt→ CGIL • 1948: Italian Constitution (art.39 Trade Unions Organization, art.40 right to strike) • 1948-1950 Set up of CISL and UIL • Workers’ Rights Statute (1970)

8. Pluralism More representative: CGIL, CISL, UIL Others: UGL, SNALS, autonomous (most of all located in the public sector) Trade Union density: 34% (1980:55%) Membership: CGIL:5.697.774 CISL:4.427.037 UIL: 2.060.909 Of whom pensioners: 5.746.477 (47,2%) Trade Unions In Italy, today

9. The organizational structure of trade unions in Italy Trade Unions in Italy are organized in different levels • Category or branch structure (four levels: Company/Plant, Provincial, Regional, National) • Confederation Structure (four levels: Municipality, Provincial, Regional, National)

10. Trade Unions’ Finances Trade Unions are financed • By members (generally 1% of the wage deduced directly from wages by employers) • Trough the supply of services (fiscal, legal, training, social security). Some of these receive public contribution. (The members pay less than the non-members)

11. Bargaining Levels • Tripartite Negotiations (“Concertation”) • National sector negotiation • Company or Territorial Integrative Negotiation The system on Industrial Relations in Italy was reformed in 1993 with the Constitutional Chart of Industrial Relations. This protocol established three levels of collective bargaining:

12. Parts State or public institution Trade Union Confederations Employers representative institution Contents: Income policies and employment Work policies Support to production system Labour market Social security →According to the economic needs and the EU economic standards (great attention to inflation) Tripartite Negotiation

13. Parts Trade Unions Branches or categories representative (Branch or category) Employers (trade representative institutions) Contents National sector collective contracts Working hours Wages increase Leaves Working conditions Sector National Collective Bargaining The national sector collective contracts last fours years, after which they should be renegotiated

14. Parts RSU (Unitary Unions Representatives) Employers (representatives of a certain company, or representative of a certain trade in a certain territory) Contents Integrative Company or Territorial Contracts Variable wage increase (linked with the productivity) Organization of work an internal mobility Management of working hours flexibility Professional grading Continuous training Health and safety Integrative Company or Territorial Bargaining

15. Characteristics: It represent all workers It applies its powers in relation to negotiation, consultation and participation It is elected by all workers (members and non-member of trade unions) on competitive lists of all trade unions existing in the company Functions: General representation of workers within the company Check the right application of collective contracts Bargaining activity Rights: To stipulate the collective company contracts To be consulted and informed To have 10 days of paid leaves to do trade union activity (Workers Rights Statute, Law 300/1970) Integrative company or territorial bargaining: RSU (Unitary Unions Representatives)

16. Current problems in the Italian Industrial Relations • The method of the trilateral negotiation is not very much appreciated by many political parties • There are too many National Contracts and they are not able to follow the changes within the organization and the market • Problems related to the renegotiation of expired national collective contracts • Company bargaining is carried on only in medium and large companies • Open problem: in the case of division among trade unions, how effective is a contract signed by just some trade unions?