Diffusion and outlook of firm-level bargaining in Italy (original) (raw)
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INAPP, 2018
A widespread belief considers decentralization of collective bargaining as a key element in introducing relevant innovations and changes in the work organization. In relation to this belief, since 2011 the Italian collective bargaining system is being specifically monitored by European institutions urging for "further reform [of] the collective wage bargaining system allowing firm-level agreements to tailor wages and working conditions to firms' specific needs". In spite of the scepticism concerning the new European macroeconomic governance judicial constraints, it is undeniable that this new set of regulations, procedures and institutions induced a favourable climate for non-regulatory interventions in this field as an acceptable and possible exit strategy from the economic crisis. Nevertheless, in Italy, this climate has not yet modified the collective bargaining structure that, as of today, remains strongly centralized. This framework has not changed, even though in these years hard and soft policies have been implemented in order to alter the hierarchical two-tier system of bargaining. To this end, the article aims to provide an in-depth analysis of the collective bargaining trends in Italy, using data from the INAPP-RIL survey conducted on a sample of approximately 22,000 Italian firms. In the first part, we analyse data from 2005 to 2015, focusing on multi-employer and single-employer bargaining, with particular regard to employer association membership. In the second one, we investigate the single-employer bargaining in 2015, breaking down data with reference to business size, economic sector and geographical area. Data confirm that in Italy, as in other countries, the dominant level of bargaining seems to be a matter of agreement and not of law. The paper shows that the share of firms applying a multi-employer collective agreement increased from 2010 to 2015, while at the same time the employer association membership decreased. In these years the share of firms declaring the application of firm-level agreements did not increase and the second level of bargaining remains strongly related to firms' dimension and economic sector. Furthermore, firm-level agreements are mostly used to regulate productivity-related pay and "soft" issues (e.g. corporate welfare and work-life balance) still continue to be negligible.
A widespread belief considers decentralization of collective bargaining as a key element in introducing relevant innovations and changes in the work organization. In relation to this belief, since 2011 the Italian collective bargaining system is being specifically monitored by European institutions urging for “further reform [of] the collective wage bargaining system allowing firm-level agreements to tailor wages and working conditions to firms' specific needs”. In spite of the scepticism concerning the new European macroeconomic governance judicial constraints, it is undeniable that this new set of regulations, procedures and institutions induced a favourable climate for non-regulatory interventions in this field as an acceptable and possible exit strategy from the economic crisis. Nevertheless, in Italy, this climate has not yet modified the collective bargaining structure that, as of today, remains strongly centralized. This framework has not changed, even though in these years hard and soft policies have been implemented in order to alter the hierarchical two-tier system of bargaining. To this end, the article aims to provide an in-depth analysis of the collective bargaining trends in Italy, using data from the INAPP-RIL survey conducted on a sample of approximately 22,000 Italian firms. In the first part, we analyse data from 2005 to 2015, focusing on multi-employer and single-employer bargaining, with particular regard to employer association membership. In the second one, we investigate the single-employer bargaining in 2015, breaking down data with reference to business size, economic sector and geographical area. Data confirm that in Italy, as in other countries, the dominant level of bargaining seems to be a matter of agreement and not of law. The paper shows that the share of firms applying a multi-employer collective agreement increased from 2010 to 2015, while at the same time the employer association membership decreased. In these years the share of firms declaring the application of firm-level agreements did not increase and the second level of bargaining remains strongly related to firms’ dimension and economic sector. Furthermore, firm-level agreements are mostly used to regulate productivity-related pay and “soft” issues (e.g. corporate welfare and work-life balance) still continue to be negligible.
Firm-level bargaining and contingent pay: New evidence from Italy
2011
This paper examines two important institutional aspects closely related: (i) the extent to which collective bargaining has been decentralised at company level; (ii) the extent to which, at this level of bargaining, variable pay systems have been used. It is performed on the basis of a nationally representative sample of manufacturing and non manufacturing firms, obtained by merging information from two different sources: balance-sheet data from the Bureau Van Dijk AIDA archive and firm-level information on performance-related pay and other workplace practices from the ISFOL Employer and Employee Surveys (RIL) for 2005 and 2007. This paper points out that the nature of the industrial relations system and their cooperative characteristics provide the flexibility needed to respond to employment volatility and skills specific accumulation. In particular we find that firm level agreements and performance related pay (PRP) contracts are positively related to the importance of training, to...
E-Journal of international and comparative labour studies, 2018
Purpose – The article aims to analyze measures to support labour productivity and occupational welfare in second-level bargaining in Italy Design/methodology/approach – Both a quantitative and qualitative approach has been employed. Findings – After illustrating the incentive system activated by the Italian Government, the limits of the policy and some risks of polarization are highlighted. Research limitations/implications – The current incentive system needs to be integrated with the other labour policies and with the economic development policies. Furthermore, new approaches in bargaining and in industrial relations are needed. Originality/value –The paper is original in its policy dimension, as it builds on unique data on collective bargaining. Paper type – Qualitative and analytical paper. Keywords – Decentralized bargaining; Collective bargaining; Performance-related pay; Occupational welfare; Labour productivity; Tax incentives; Administrative data analysis; Italy.
E-Journal of International and Comparative LABOUR STUDIES, 2019
Purpose – The article aims to analyze measures to support labour productivity and occupational welfare in second-level bargaining in Italy Design/methodology/approach – Both a quantitative and qualitative approach has been employed. Findings – After illustrating the incentive system activated by the Italian Government, the limits of the policy and some risks of polarization are highlighted. Research limitations/implications – The current incentive system needs to be integrated with the other labour policies and with the economic development policies. Originality/value –The paper is original in its policy dimension, as it builds on unique data on collective bargaining. Paper type – Qualitative and analytical paper.
DECENTRALIZED BARGAINING AND MEASURES FOR PRODUCTIVITY AND CORPORATE WELFARE GROWTH IN ITALY
INDUSTRIAL RELATIONS IN EUROPE CONFERENCE (IREC) 2018, 2018
INDUSTRIAL RELATIONS IN EUROPE CONFERENCE (IREC) 2018 Sustainable labor markets: social welfare and protection, working conditions, job quality and work-life balance KU LEUVEN – CENTRE FOR SOCIOLOGICAL RESEARCH & INSTITUTE FOR LABOUR LAW 10-12 SEPTEMBER 2018, KU Leuven – College De Valk, Tiensestraat 41 - 3000 LEUVEN, BELGIUM
An Italian job: the need for collective wage bargaining reform
Policy Contributions, 2016
Highlights For references and footnotes, please see the PDF version of this publication. Since the mid-1990s, Italy has been characterised by a lack of labour productivity growth, combined with a 60 percent growth in labour costs, 20 percentage points above euro-area average consumer price growth. As a consequence, Italy has become less competitive compared to its euro-area partners, the profitability of its firms has dropped and real GDP-per-capita has flatlined. At the root of the substantial discrepancy between wages and productivity is Italy’s current system of centralised wage bargaining which, in many ways, is designed without regard for the underlying industrial structure and geographical heterogeneity of the Italian economy. This has fostered perverse incentives and imbalances within Italy. Collective wage bargaining, and in particular the determination of base salaries, should be moved from the national to the regional level for all contracts, in the public and private sect...
Decentralized Collective Bargaining in Italy. SMEs and Case Studies
SMEs and Industrial Relations in Italy. Investigation on the 2013/2014 Frame agreements and the Law no. 148/20. Derogation from protective measures established by law and national contracts, in order to better adapt the employment regulations to specific productive con- texts and protect and maintain employment levels. The balance identified by social parties who are more careful to the development of the markets and the society, by complying with the general protection measures and the fundamental rights necessary for a fair regulation of the labour market.
Industrial relations and the welfare state in Italy: Assessing the potential of negotiated change
West European Politics, 2007
The 1990s saw an important shift from long-term reform sclerosis in the Italian industrial relations and welfare state systems to important innovations, both in the mode of policy making (concertation via social pacts) and the content of reform (decentralization in the collective bargaining system and greater flexibilization of a highly-rigid labour market). After 1998, concertation weakened considerably once macro-economic convergence for EMU membership had been achieved, and contestation of the collective bargaining system and labour market regulation reappeared. This article seeks to explain the rise and demise of concertation over the past decade or so, and to assess the consequences of reform for wage bargaining and employment.