International corporations and EWC-TCA in Italy

Francesco LauriaCentro Studi N.le Cisl

GDANSK, 2nd February 2016

Project VS/2015/0405

Few words about Cisl

CISL, the second largest (around 4.500.000 members in 2015) Confederation of Trade Unions in Italy

• Born in 1950, independent and non ideological• Cisl National Study Center was created in

1951 (training and research)• Strong cooperation with Solidarnosc since the

beginning (during the communist period)

Few words about Italian Industrial Relations

In Italy workers are usually organized depending on the type of productive activity exercised by the company for which they work (trade union for sector or industry).

The collective agreements through which organised workers express solidarity and concur to work regulations are therefore, mainly, the nation wide-sector collective contract.

Dimensions of the structureThe degree of centralization of the structure and

system of the Italian c.b. is on the middle in the international ranking.

With the 1993 agreement the decentralization of the bargaining activity is controlled by the central level (centralised decentralisation). After the crisis of 2008, the Italian structure follows the decentralizing trend of the other European experiences.(ex banking sector).

Dimensions of the structure• The Italian structure is two level: national (intersectoral and industrial) and local

(mainly company).• The absolute extension (or coverage) of the

structure is high: around the 80% of the labour force (intersectoral and industrial agreements). That explains the high (?) unionization rate (around 30%).

• But only 30/35% of the labour force is covered also by company agreements.

In the past the effect of the downs was centralization, but in the era of global markets it happens exactly the opposite.

A creeping process of erosion of collective bargaining is possible.

This could be a serious problem where as in Italy it’s not functioning a system of legal minimum wage.

In the next months social partners must find and agreement on the reform of collective bargaining or the Government will act by him self.

Italian Multinational Companies• In 2014 ISTAT (the Italian National Institute of

Statistics) released the results of a research on Italian multinational companies  The research considered 6,173 Italian multinational companies and how they  have evolved in the last years.

• Companies have increased their investments abroad; mainly these investments have been concentrated in Romania, Brasil and China (two of these countries are characterized by a very low cost of labor).

Italian Multinational Companies• In 2012, 21,830 Italian foreign affiliates

operated in more than 160 countries. • These enterprises employed more than 1.7

million persons, and generated a turnover of 546 billion euros.

• The economic relevance of these enterprises, as compared to resident businesses, was equal to 14.8% of turnover.

Italian Multinational Companies• In 2012, 21,830 Italian foreign affiliates

operated in more than 160 countries. • These enterprises employed more than 1.7

million persons, and generated a turnover of 546 billion euros.

• The economic relevance of these enterprises, as compared to resident businesses, was equal to 14.8% of turnover.

Italian Multinational Companies• Italian foreign affiliates in manufacturing accounted for

almost 6,400 enterprises, representing slightly more than a half of Italian affiliates active in non-financial services.

• Industrial activities were more remarkable in United States (124.000 employed by Italian affiliates), Romania (89000), Brazil (88000) and China (75.000)

• Labour cost in Italian foreign affiliates was particularly low in China (6.5 thousand euro), India (6.5), Romania (7.0) while it is higher in the France (56), United States (50.8) and United Kingdom (50.7).

EWC in Italy

European Society in Italy

EWC representatives in Italy• The peculiarity in Italy is the fact that, based on the

agreement reached by the parties, transposed into national legislation, the EWC are appointed by the trade unions signing collective agreements in consultation with the company's trade unions representatives.

• This is very important: the representations are more experienced in dealing with directions and more politically formed and their designation meets needs for balance between the different unions.

EWC in Italy what to improve… Problematic flow of information and

coordination between the three union figures involved in the process: the delegates at the EWC, representatives of workers and company officials trade-union counterparts.

The exchange of informations is often limited to a relationship between delegates and company representatives without passing with the trade unionist structures

A best practice • http://www.unionsnetworksindacale.eu/• Case studies and intervies with EWC

representatives.• International network and project

IFAs TCAs with Italian Multinational Companies

(construction sector)

• Impregilo (November 2004)

• Italcementi (June 2008)

• Salini (2011)

• Merger Salini-Impregilo (2014)

What do TCAs include?

• Respect for freedom of association and the right to collective bargaining

• Work as free choice (no forced labor, no retention of passports etc.)

• Equal opportunity and treatment in working conditions and wages of whatever ethnicity, religion, skin color (no discrimination)

• Protection of migrant workers and posted workers (equal pay for equal work)

What do IFAs include?

• No child labour• Decent wages (written agreements on wage and

working conditions – wage deductions only those foreseeen by law )

• Respect of working time in accordance with the Host country law - ok overtime but within certain limits – at least one day off per week

What do IFAs Tcas include?• Health and Safety of workers (working environment safe

and healthy - decent housing - receiving personal equipment for safety in building-sites - training - risk prevention - the right to have representatives on the safety committees)

• Commitment to extend Health and safety principles to contractors - subcontractors and suppliers (their participation in meetings, seminars, as well)

What do IFAs-TCA include?

• Workers’ Welfare (drinkable water – canteen – decent housing - information and prevention of AIDS/HIV)

• Training (all workers must be entitled to participate in training programmes – also for skills - use of new technologies, etc. ..)