New rules on bargaining in Italy


Italy’s three main union confederations and the country’s largest employers’ association have agreed new rules for collective bargaining. However, the impact of the deal is unclear.


The agreement signed formally by the three union leaders, Susanna Camusso (CGIL), Annamaria Furlan (CISL) and Carmelo Barbagallo (UIL) as well as Vincenzo Boccia, head of the employers’ body Confindustria, on 9 March, is an attempt to strengthen the role of collective bargaining and the unions and employers’ associations.


It restates both sides’ commitment to a two-tier system of bargaining, with national industry agreements ensuring that pay keeps pace with prices, while company-level agreements reflect the productivity improvements.


The main new element in the agreement is that it proposes drawing up rules to determine which employers’ organisations should be allowed to sign collective agreements. The aim is to ensure that only those with sufficient members, who, in the jargon, are “representative”, should have this right


The background is the growth of so-called “pirate” agreements, signed by unrepresentative bodies, which set minimum rates much below those negotiated by the main unions and employers’ bodies. It is estimated that around 500 of the 868 agreements registered are in this category.


However, although the employers signing the deal have agreed to work towards this, the text does not bind the employers’ bodies signing the pirate agreements. Only legislation could change that, and there is no certainty that it will come.