Chemicals deal creates a stink in Italy

A settlement for the 215,000 employees in the Italian chemical industry has provided an above-inflation pay rise but created divisions among unions.

The deal, signed last month, will deliver a 5.65% increase in three stages over two years, at a time when annual inflation is 2.2% (April). There are also improvements in shift payments, and back pay for the period January to April 2006.

However, some of those involved in negotiating the deal are unhappy that companies will be allowed to depart from the national agreement in certain circumstances.

Francesco Fontanelli and Giancarlo Straini, both part of the national secretariat of the CGIL-FILCEM union, say that this “opt-out” plays into the hands of the employers, who have been pushing for greater flexibility in collective bargaining.

But CGIL-FILCEM’s general secretary, Alberto Morselli, rejects the criticism, since the national agreement contains safeguards limiting the potential for local variations: companies will not be allowed to depart from the national provisions unless there is unanimous agreement by both unions and employers at national level.

And Fiorenza Colombo of the FEMCA-CISL union argues that the flexibility will help to attract “productive investment and additional employment”.

The debate on increasing bargaining structures’ flexibility reflects differences of opinion between the union confederations: the largest confederation, CGIL, opposes greater decentralisation, while the second-largest, CISL, is broadly in favour.