INDUSTRIAL RELATIONS IN EUROPE CONFERENCE (IREC) 2018
Sustainable labor markets: social welfare and protection, working conditions, job quality and work-life balance
DECENTRALIZED BARGAINING AND MEASURES FOR PRODUCTIVITY AND CORPORATE WELFARE GROWTH IN ITALY
3. 1. Collec?ve bargaining in Italy
2. Conundrum of labor produc?vity in Italy
3. Measures for dissemina?on of two-?er bargaining
4. Conclusions: some policy recommenda?ons
Bibliography
INDEX
The INAPP cannot be held responsible for errors or any consequences
arising from the use of informa6on contained in this paper.
The views and opinions expressed are solely those of the authors and do
not necessarily reflect those of the Ins6tute.
5. 5
A large number of countries adopted in the 1990s two-Ser
bargaining structures or extended the scope of the exisSng
ones.
Although the history and design of these structures differ
considerably from country to country, a common factor
behind these developments was the search for an organized
or controlled decentralizaSon of collecSve bargaining, in
which the so-called social partners, rather than moving from
fully centralized to fully decentralized structures, opted for
an intermediate soluSon.
In Italy the «Protocol» of 23 July 1993 expressly opened to
forms of «decentralized bargaining».
One of the aims was to sSmulate producSvity growth in the
second level of bargaining, by linking wages dynamics to
producSvity.
This padern sSll today is hard to catch on.
In essence, naSonal collecSve agreements do not
compensate the producSvity increases. This funcSon is
delegated to decentralized bargaining (at company and / or
territorial level), which can remunerate producSvity gains
on the base of the achievement of producSon results (ie
Performance-related pay).
The Protocol of 23 July 1993 and the two-tier bargaining
COLLECTIVE BARGAINING IN ITALY
8. MEASURES FOR DISSEMINATION OF TWO-TIER BARGAINING
The opportunities offered by two-tier bargaining
8
Decentralized bargaining remains the level where condiSons for a beder company-workers
relaSonship can be made, which indirectly could result in increased labor producSvity.
Corporate Welfare
Work-life balance
Benefits
Par?cipa?on
The soluSons that can be developed in the second
level are many: from corporate welfare, to company
parScipaSon, to rent-sharing formulas, to
producSvity bonuses on accessory wages, to
performance-related pay, etc.
In recent years, the
Government has put in
p l a c e a p a c k a g e o f
incenSves aimed at rooSng
the two-Ser bargaining in
the firms, providing for a
tax benefits regime for an
ever-wider basket of
services (scholarships for
the children of employees,
assistance to elderly
relaSves, baby-sihng or
gym voucher, etc.).
Produc?vity
10. A new repository
10
The incenSve system has sSmulated, from May 2016 to
August 2017, the deposit of more than 25 thousand
second-level contracts.
REPOSITORY
Measure monitoring was also envisaged, by compiling a special instrument for collecSng summary data:
the Repository acSvated by the Ministry of Labour (ML), whose data were processed by INAPP.
The data obtained from the Repository, like all
administraSve data, have been verified by INAPP
and linked with other datasets (Asia - Sisco) to
increase the quality of informaSon.
Below are some analyzes extracted
from the preparatory works for the
«Rapporto sul mercato del lavoro e
c o n t r a d a z i o n e c o l l e h v a
2016-2017» (CNEL in collaboraSon
with ANPAL and INAPP).
MEASURES FOR DISSEMINATION OF TWO-TIER BARGAINING
Therefore the applicaSon forms considered
valid for processing are 23,063.
13. Welfare measures and Workers’ proFit sharing
13
3,6 0,8
95,7
Workers’ profit-sharing
13,13
6,00
80,87
Welfare measures
no answer
Yes
No
MEASURES FOR DISSEMINATION OF TWO-TIER BARGAINING
Only 13% acSvated corporate welfare measures.
Access to welfare services sSll seems to represent a
problem.
When considering corporate welfare programs, firms' size
sSll makes the difference.
Access modaliSes could be solved by creaSng a network
among the interested firms.
This could be easier between firms of the same industrial
district or by joining private groups specialized in a sector,
which have already set up and offer on the market a
plaqorm of services at an acceptable price.
In all these cases, however, such services plaqorms would
be sustainable only with high scale volumes.
Even less are the pracSces of Workers’ profit-sharing:
almost 4%
Unlike corporate welfare, the theme of profit-sharing
does not occupy a relevant posiSon in the public opinion
and in that of the experts of the sector.
This is very well reflected in the data, where it does not
even reach 1% among firms that registered local-level
agreements.
The lack of interest toward this aspect certainly
consStutes a missed opportunity.
It sSll an important theme that could really develop in the
upcoming future.
19. Council recommendation on the decentralized bargaining
19
COUNCIL RECOMMENDATION on the 2018 Na?onal
Reform Programme of Italy and delivering a Council
opinion on the 2018 Stability Programme of Italy
COM(2017) 411 final
«Whereas: […] (22) Bargaining at firm or territorial level
remains limited, also due to the prevalence of small
firms in Italy. This may prevent wages from adapSng
swijly to local economic condiSons. At the end of
February 2018, Confindustria and the three major Italian
trade unions (Cgil, Cisl and Uil) signed a framework
agreement, stressing the role of second-level bargaining,
by increasing legal certainty through sehng clearer rules
for the representaSon of social partners at negoSaSons.
The tax rebates on producSvity-related wage increases
set by second-level agreements were strengthened in
2017, but their effecSveness is difficult to evaluate.
While the total number of collecSve agreements is on
the rise, only a small share of them is signed by the main
trade unions and employers’ associaSons.[…] ».
COUNCIL RECOMMENDATION on the 2017 Na?onal
Reform Programme of Italy and delivering a Council
opinion on the 2017 Stability Programme of Italy
COM(2017) 511 final
«Whereas: […] (22) Second-level bargaining is not broadly
used. This hampers the efficient allocaSon of resources
and the responsiveness of wages to local economic
condiSons. This is also due to the exisSng framework
rules and pracSces for collecSve bargaining, which entail
uncertainty in industrial relaSons and leave limited scope
for local-level bargaining. Tax rebates on produc?vity-
related pay increases have not proved effec?ve in
extending the use of second-level bargaining
significantly.
[…] ».
[…] «RECOMMENDS […] (4) With the involvement of
social partners, strengthen the collecSve bargaining
framework to allow collecSve agreements to becer take
into account local condi?ons. […]».
CONCLUSIONS: SOME POLICY RECOMMENDATIONS
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