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This summary presents the current economic and labor market scenario in Italy, highlighting the value proposition and opportunities for TAW in the country. It also covers recent changes in TAW-related Italian law and future goals for better legislation. The role of TAW in providing flexibility, security, and upgrading skills is discussed, along with the main competitors and the best features of TAW contracts. The text is in English.
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Ciett – Assolavoro Board Meeting Milan, 14 February 2013 Una Hotel Cusani, Via Cusani 13 – Via G. Sacchi 7
Summary • Italian economic overview and labour market scenario • TAW value proposition and opportunities in Italy • TAW related Italian Law with recent changes • Future goals for a better Law • TAW relationship with Unions, Confindustria and Public Institutions • Assolavoro organization 2
The sector in a nutshell (2013) • Number of companies: 87 • Top ten market share: 72.47% • Number of branches: 2.619 • Turnover: 6.240 mil. Euros • Industries covered • Manufacturing and Construction: 55% • Services: 17% • Public: 9,7% • Others: 18.3% Percentage of TW on total employment Source: Assolavoro, Databank
Italian labour market – temporary workers occupation January 2008 – July 2012
The Italian labour market – Employment scenario January 2010-July 2012
The economic crisis’ consequences on the labour market and the TAW Italian market • 22,723,000 employed in December 2012, decreased by 0,5% compared with December 2011 • Employment rate equal to 56,4%, decreased by 0,2% • 2,875,000 unemployed, increased by 0,1%, compared with November • Unemployment rate equal to 11.2%, increased by 1,8% on annual basis • Unemployment rate among young people (15-24 years) equal to 36,6% • During 2012 total TAW revenues decreased by 10-12%, compared with the previous year • TAW Gross margin constantly decreasing 8
The economic crisis’ consequences on the labour market and the TAW Italian market Fonte OECD
How Italian TAW faced the crisis • Thanks to the cooperation between the Minister of Welfare and the Trade Unions, the TAW sector adopted the so called “Contratti di Solidarietà”. • With this system, companies reduced the working time of direct workers, reducing proportionally, at the same time, their salaries. • About 40 “contratti di solidarietà” have been implemented during last three years; companies that adopted this solution with approximately 11.000 workers reduced salaries and working time by 35%. • Thanks to “Contratti di Solidarietà”, companies were able to save approximately one thousand workers, avoiding in this way the need of dismissals. 10
Areas covered by Agencies in Italy • Core Business • Temporary Staffing • Training for temps (Formatemp) • Staff Leasing • Apprenticeship • Mass market search and selection • Cooperation with Public Services • Non Core • Outplacement • Outsourcing (e.g: promotional marketing) • Other activities (Middle search and selection; Training)
The role of TAW in Italy: Flexibility - I • Providing flexibility to companies (the average length of a mission is 40 days), combining TW contract and outsourced services (standard or customized) • Meeting the needs of the companies for “long term” flexibility • Supporting customers’ competitiveness
The role of TAW in Italy: Flexibility - II • PRODUCT • Temporary Staffing • Staff Leasing • Apprenticeship • Search and selection • PROJECT • Massive Recruitment • In-house Services • Recruitment Process Outsourcing
The role of TAW in Italy: Security • Providing more work opportunities • Facilitating access to labour market • Providing security • Compliance • Equal pay and conditions • Employability for candidates through candidate management • Upgrading skills and qualifications (training and appr) • Toward stable contracts (staff leasing) • Strengthening partnership with Public Services • Fighting illegal-undeclared work
TAW Main Competitors • Fixed Term Contract • Professional contract and self-employment • Outsourcing • Illegal/Undeclared Work
TW - The best flexible contract’s features • Equal pay • Conditions for usage • Quota limits (by User CLA) • No lenght limitations • Mandatory Stabilization by our CLA after 36 or 42 months • Training 4% (extra cost) • Ebitemp 0,2% (extra cost) • Aspi 1,4% (extra cost compared with OE – on top for 2013) • No Apprenticeship
Open-ended Contracts 2 different options: • Fixed term commercial contract: * Same as before * No Aspi * No mandatory stabilization 2) Open-endend commercial Contract (Staff leasing): * No conditions for usage, but limitations on users’ activity * No quota limits * No mandatory stabilization * No Aspi * Apprenticeship available
Changes in 2012 caused by AWD implementation 1) For disavantaged workers: • elimination of conditions for usage • elimination of quantitative limits 2) Power to CLA at company level to eliminate, when agreed, any conditions for usage
COMMISSION REGULATION (EC) No 800/2008 Article 2 Definitions: 18. ‘disadvantaged worker’ means any person who: • (a) has not been in regular paid employment for the previous 6 months; or • (b) has not attained an upper secondary educational or vocational qualification (ISCED 3); or • (c) is over the age of 50 years; or • (d) lives as a single adult with one or more dependents; or • (e) works in a sector or profession in a Member State where the gender imbalance is at least 25 % higher than the average gender imbalance across all economic sectors in that Member State, and belongs to that underrepresented gender group; or • (f) is a member of an ethnic minority within a Member State and who requires development of his or her linguistic, vocational training or work experience profile to enhance prospects of gaining access to stable employment; 19. ‘severely disadvantaged worker’ means any person who has been unemployed for 24 months or more;
Changes in 2012 for TAW caused by Labour Reform • Elimination of any conditions for usage (when requested) in case of: • first contracts (max 12 months, no renewal) • innovative start-up companies 2) Aspi (TW): 1,4% 3) Apprenticeship ONLY with commercial open-ended contracts (staff leasing)
Changes in 2012 for TAW Competitors caused by Labour Reform • FT: Stop & Go extended from 20/60 days to 60/ 90 days if first contract’s lenght is more than 60 days • FT: maximum lenght of 36 months for each worker, counting also previous eventual TW periods • Professional contracts and self-employment: heavily restricted when used in substitution of ordinary labour contracts
Future goals to be obtained for TAW • Remove conditions for usage and raise quota limits in any case or, at least, for open-ended contracts (Law) • Reduce social charges for open-ended workers provided by TAW (Law) • Remove ASPI (Law) • Remove mandatory stabilization and build convenient conditions for stabilization (Cla) • Create more favourable conditions for the dismissal of open-ended workers provided by TAW (Cla)
TAW relationship with Unions • Open dialogue with internal TAW Unions CCNL Formatemp Ebitemp • Issues pending with Unions at company level, becoming more relevant with the increase of local agreements
TAW relationship with Confindustria • Assolavoro is autonomous in lobbying activities and in negotiating CLA. • Preferred relationship with Confindustria (aggregate member) • After the Labour Reform: TW is the preferred flexibile contract, although more expensive than the other previous solutions
TAW relationship with public institutions • The crisis has stressed other structural problems affecting the Italian labour market (Young, Over 50, Women) • TAW will have to support public institutions in defining specific programs and activities to improve public policies’ effectiveness and efficiency. • Providing Public vouchers to unemployed people for acquiring services dedicated to their reallocation seems a best practice to be adopted • Outplacement has to become mandatory for companies when dismissing workers 25
Assolavoro Organization Governance Board: 15 members Presidency: 5 members Presidential delegations: 1) internal compliance (appropriate application of Law and Cla) 2) external compliance (fight against illegal/undeclared work) 3) industrial relationship 4) public active labour policies and services development and EU relationship Assembly: 44 members Assolavoro members apply a Code of Ethics
Assolavoro Organization Operating Groups: 1) legal affairs and lobbying 2) trade union affairs 3) relationship with public administration 4) public active labour policies and services 5) TAW credit protection 6) payroll 7) dumping 8) staff leasing 9) relationship with EU
Main Organization Principles Separating Governance and technical organization Independent lobbying activity Implement services and conventions Service providing company: Assoservizi