1. Recent developments in the regulation
of work and employment in Italy
Roberto Pedersini,
Università degli Studi di Milano
ESRC Seminar 3 - International Regulation of Work and Employment
15 September 2014, Monash University Prato Centre

2. Main economic and IR features
• Dualism in the economic structure and in the labour
market (both traditional and ‘new’ ones)
• Two-tier bargaining structure with a prevalence of
industry-wide bargaining, but recent tendency towards
decentralisation
• High bargaining coverage (80%), relatively high union
density (35%)
• Social concertation with important achievements in the
1990s, but difficulties in the 2000s: new political attitude
and emerging divisions between trade unions
Roberto Pedersini, Recent developments in the regulation of work and employment in Italy
ESRC Seminar on International Regulation of Work and Employment
15 September 2014, Monash University Prato Centre
1

3. The context
• Economic stagnation
• Increasing unemployment
• Pressure on public finance and spending
-6.0
-4.0
-2.0
0.0
2.0
4.0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
GDP
-6.0
-5.0
-4.0
-3.0
-2.0
-1.0
0.0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Deficit
100.0
105.0
110.0
115.0
120.0
125.0
130.0
135.0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Debt
Roberto Pedersini, Recent developments in the regulation of work and employment in Italy
ESRC Seminar on International Regulation of Work and Employment
15 September 2014, Monash University Prato Centre
2

4. The Labour market: unemployment
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
Gennaio
Maggio
Settembre
Gennaio
Maggio
Settembre
Gennaio
Maggio
Settembre
Gennaio
Maggio
Settembre
Gennaio
Maggio
Settembre
Gennaio
Maggio
Settembre
Gennaio
Maggio
Settembre
Gennaio
Maggio
Settembre
Gennaio
Maggio
Settembre
Gennaio
Maggio
Settembre
Gennaio
Maggio
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Total
Women
Youth
Roberto Pedersini, Recent developments in the regulation of work and employment in Italy
ESRC Seminar on International Regulation of Work and Employment
15 September 2014, Monash University Prato Centre
3

5. Industrial relations
• During the 2000s a division between the main trade
union confederations has emerged, especially in the
manufacturing sector, which long was the reference for
collective bargaining in private manufacturing
• The exit of Fiat from the traditional industrial relations
system marked a symbolic break, but not a turning point,
in Italian industrial relations (2010-2012)
• The division between the unions and the Fiat case
highlighted the issue of representativeness and
representation
• In the public sector, suspension of collective bargaining
and wage freeze in 2010-2015; halving of time off for
union representatives in 2014
• No social concertation of economic and social reforms
since 2008
Roberto Pedersini, Recent developments in the regulation of work and employment in Italy
ESRC Seminar on International Regulation of Work and Employment
15 September 2014, Monash University Prato Centre
4

6. Main issues and developments
• Bargaining structure: ‘separate’ January 2009 central
agreement on the reform of the bargaining structure,
with Cgil refusing to sign it; November 2012 agreement
of productivity wages
• Legal derogations: art. 8 of decree law 138/2011
• Representativeness and bargaining structure:
intersectoral agreements were signed by Confindustria,
Cgil, Cisl and Uil in June 2011, May 2013 and January
2014
• Representation: July 2013 Constitutional Court Ruling
on art. 19 of the Workers’ Statute establishing that
unions which participate to negotiations can set up a
plant-level structure
Roberto Pedersini, Recent developments in the regulation of work and employment in Italy
ESRC Seminar on International Regulation of Work and Employment
15 September 2014, Monash University Prato Centre
5

7. Main trends
• Between organised and unorganised decentralisation,
although the former seems the prevailing trend as
shaped by various intersectoral agreements
• Important role of social partners and collective
bargaining in the traditional core sectors
• The economic crisis is putting pressures on some
sectors, like the tourism industry
• Attempts to reinforce the role of social partners and
collective bargaining in the reform of the social security
system
• Some developments at local and company level
(restructuring, innovation, welfare), but lack of support
from the political arena at national level
• Possible erosion and fragmentation of collective
protections
Roberto Pedersini, Recent developments in the regulation of work and employment in Italy
ESRC Seminar on International Regulation of Work and Employment
15 September 2014, Monash University Prato Centre
6

8. Conclusions
• Responses to the economic crisis initially followed
traditional paths with some elements of innovation and
learning potentials through involvement of social
partners at sectoral and local levels, especially in the
provision of income-support and welfare benefits as well
as in active labour market policies
• Shift in the bargaining structure to the decentralised
level: lower protection? Better chances for gain sharing
and higher participation at company-level?
• Increase in ‘external pressures’ and new approach to
social concertation: the ‘modernisation’ of social
dialogue can in fact reduce its role
Roberto Pedersini, Recent developments in the regulation of work and employment in Italy
ESRC Seminar on International Regulation of Work and Employment
15 September 2014, Monash University Prato Centre
7