Italian telecoms deal protects workers at subcontractors

Agreement has been reached on a new three-year deal for the 160,000 employees in the Italian telecommunications industry after 13 months of negotiations. Although the settlement fixes a pay increase for the period 2012 to 2014, its most interesting feature is the new protection it provides for those employed in subcontractors.

In future, according to the new clauses added to the agreement, contracts can only be given to companies which apply the telecommunications industry agreement or an equivalent collective agreement. Contracting companies must also have an ethical code consistent with the principles of corporate social responsibility.

For Massimo Cestaro, general secretary of the SLC-CGIL union, which signed the deal together with the unions from the other two major union confederations, CISL and UIL, this aspect of the agreement should avoid the “drive to the bottom” in contracting-out.

As he points out, the clauses should also help the employees in larger companies, as they will make the “practice of outsourcing, widely used in the past, less easy”.

The deal, signed on 1 February also increases pay for someone on the benchmark grade by €135 by the end of 2014, with the increase paid in four stages. This is in line with the forecast increase of 1.5% a year. In addition there is a lump sum payment of €400, paid in April this year to take account of the period from 1 January 2012, without an increase.