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What did you learn from the reading on Italy?

Atlapedia?

Labourstart?

Population in 2005 ‑ 58.1 mil.

Lowest fertility rate in world

Population barely stable with significant in-migration and would clearly be shrinking without it

Higher population density than Canada, Sweden or France, below Britain and Germany

Percent of population 65 or older, is highest in course at almost 25% in 2002

Weak democratic traditions ‑

Universal male voting (>30) just achieved in 1912 and women allowed to vote only after WWII

1946 referendum ended monarchy

Constitution adopted 1947 and went into effect in 1948

2 house parliament - Senate and Chamber of Deputies

Senate 315 seats, 232 directly elected and 83 by regional proportional representation, plus small number of Senators for life (e.g. former presidents).

Deputies 630 seats, 474 directly elected and 155 by regional proportional representation

Must have 4% of vote to get any seats in proportional representation

Unlike most parliamentary systems, the two house have equal legislative powers

President elected by Parliament and regional representatives for seven year term

Carlo Azeglio (elected 1999)

Head of state with pretty much the same powers as a constitutional monarch

Political Context - Political Parties

May 2001 election 8 parties in Chamber of Deputies with at least 11 seats

68 seats divided among others with total of 40 represented

Christian Democrats ‑ DC ‑

Catholic oriented moderate party ‑

Widely viewed as party of patronage and bureaucracy –

Key to all post-war governments until 1994.

Has broken into several smaller parties

Italian Communist Party ‑ PCI ‑

Largest Communist Party in west – 1985 won 35% vote making it largest Italian party

Moved from radical to largely reformist

Italian Socialist Party ‑ PSI ‑

Social Democratic party traditionally smaller than PCI –

Like DC decimated by corruption charges

Minor Center Parties –

Often keys to governing coalitions

New parties to emerge in 1990s

Include Greens and Northern League

Intent on devolution of power or even splitting Italy in half

PCI was never in government since 1947 but did support government 1976‑79 ‑

Historic Compromise

Communists relatively unscathed

2004 Corruption index Italy the most corrupt country in course

August 1993 Parliament agreed to elect most of both houses in single representative electorates.

1994 and 1996 elections didn't reduce fragmentation

Olive Tree Coalition promised to eliminate proportional voting entirely but can't get small parties to go along

Political Parties

May 2001 election, Chamber of Deputies

House of Liberties (right alliance)

Won 337 seats and elected their prime minister Silvio Berlusconi

Consists of 4 major parties, Forza Italia (176 seats, Berlusconi’s party) National Alliance (97) UDC (36) Northern League (28)

National Alliance is a “Post Fascist” party

Olive Tree (left alliance)

Won 214 seats

Consists of two major parties, Democrats of the Left (135), Daisy Alliance (79) 2004 EU elections in Italy, Olive Tree won 37 seats to 36 for House of Liberties indicating a shift

Elections never changed governing parties - at least until 1994

Christian Democrats always dominant, even on rare occasions when smaller parties provided prime minister

Emergence of Northern League

Initially separatist

Now just seems to want less centralization

Emergence of National Alliance

Third largest party in Parliament after 2001 elections

“Post Fascists”

Modern Industrial Economy with sizable traditional sector especially in south

North highly industrialized while south largely agricultural. South has more than double unemployment of north and requires very substantial subsidies

Highly efficient private sector

Highly inefficient public sector including both industries and civil service.

Political appointment carries more weight than efficiency

Lowest percentage of people with post-secondary education in the course

Second lowest per capita income of countries in course – very slightly above Germany 2002

Purchasing power parity basis and huge regional gap

Income data unreliable

Still not so very different from Britain or France

1970s through 1990s higher growth than most other countries.

Now world's 7th largest economy.

Labor Force Participation lowest in course

Because women far lower than any other country in course

Part-time employment lowest in course

8.6% unemployment 2004

Lower than double digit unemployment for virtually all of the 1990s

Second highest long-term unemployment in course after Germany (those two quite close together)

Unemployment particularly difficult problem in the south (BLW)

1991-2001 second lowest job creation rate in course (almost none)

Only Sweden (which lost jobs over that period) lower

Very large informal economy

Largest in course

1999 estimated at 27% GDP

2002 legislation aimed to try to bring more irregular employment in this sector into regular employment

Unreported and untaxed –

Tax avoidance principal reason

Government controls 50% of output, largest of any western nation

including steel, banking, telecommunications and energy

Series of privatizations since 1992 have reduced this

Since 1992 Italy has had more privatization of public enterprises than any country in the EU

Government spending

2003 Third highest in course at 48% GDP. This is down considerably since 1993

2003 tax revenue also third highest in course at about 44% GDP

Gender Equality – 2004 index

Italy the least equal in the course (and nowhere even close to France, the second least equal)

Child Poverty – 2003

Worst rate in course at about 16%

Still well below US rate of about 22%

PSD now quite conservative

So much so that it is rejected by much of the radical left

Employers anti‑union

More so than Sweden

Less so than France

Overall little ideological stability but perhaps more than France ‑

Assassinations of Aldo Moro and Ezio Tarantelli

2002 Labor Law Professor Mario Biagi, who advocated labor law reform and was advisor to the Labor Minister was assassinated 1 day after writing a public article. Similar assassination in 1999

Density 35% 1998 - data could be wildly off - union self reports

Employed dues paying members may be 40% of total membership

Maybe 40% membership retirees, students and housewives

Unions organized at national, regional and district levels, but traditionally not at plant level.

Since 1993 agreement, union representation units (RSUs) elected at workplace level

Unions began in early twentieth century largely as adjunct of socialist parties

Seek role speaking for workers generally, not servicing members

Always as industrial unions

Unaffiliated (autonomous) unions important in several sectors and grew in 1980s

Many craft unions unaffiliated

Still majority of unionists in unions affiliated to one of the three major confederations

3 major confederations trying to reorganize their affiliates into about 20 industrial federations each All organize white and blue collar, private and public sector and the retired These confederations have won overwhelming majority of RSU elections

Left‑wing oriented ‑ ties to both PCI and PSI

Since 1949 PCI and PSI always shared power in CGIL

1990 formally dissolved PCI faction

Now ties to PSI and PDS but formally autonomous

Other major confederations split from this one in period 1945-50 (BLW)

Large Catholic element but not exclusively Catholic

Most leaders traditionally close to DC

Gradually weakening DC links since 1960s, now formally autonomous

Ties to both PSI and small center parties but also now formally autonomous

After severe splits in 2002, the three confederations began to attempt to work together again in 2004

Negotiated together and signed with several employers’ associations an agreement aimed at improving the economy of the south

All three confederations lost members since 1981

At least among the economically active population

Percentage of union members in unions affiliated to one of the three has now fallen to 67%

Minor confederations

Organize some managers and professional groups

CISNAL linked to neofascist party but plays little role in IR

linked to National Alliance

Since ostracized by other unions

Claims to be as large as UIL

Only about half of all members pay dues

But unions also earn income by administering some social service benefits to individuals

Repressive measures ‑ FIAT 1950s notorious

Even now, major northern companies often controlled by founding families

Confindustria ‑ General Federation of Italian Industry

Commerce and agriculture have their own associations

Private Sector

Law forced public employers to withdraw 1957

Association of associations

Traditional ties to DC

More independent since break up of DC (BLW)

Intersind ‑ bargains for industrial sector ‑

Largest bargaining organization for public sector employers

Decreasing in size due to privatization

Enforce various aspects of procedural law

e.g. determine which unions entitled to legal protections

Enforce certain substantive laws

e.g. legal restrictions on layoffs, part‑time employment, temporary work, sex discrimination

Traditional government aloofness from IR regulation

Parties have preferred this

Before 1960s little government regulation

Right to unionize and strike enshrined in constitution

Seen as barriers to Fascism

Reflected view that employers has cooperated much to willingly with Mussolini

1959 ‑ agreements given legal status as minimum standards covering all employees

Nationally for national or in the industry if industry‑wide agreement

Agreements extended to cover entire industries so there is no non-collective bargaining option

Workers Statute ‑ 1970

Legalized union representation at the work place

Banned some employer anti‑union practices including victimization of union representatives at the work place (BLW)

Every employee 10 paid hours year for union business

Often used to pay one full‑time shop steward

These rights available only to representative unions

Law doesn't define this but clearly includes three major confederations

Substantive

Often codification of outcomes bargained between unions and government

Social security

Various pensions 25% government spending

Employees have mandatory retirement at 60 with pensions at 80% income

Highest in course

CIG ‑ Wage Integration Fund

Employer must bargain with unions to get access to this

Negligible cost to employer

Law requires just cause for dismissal

Uniquely in Europe, requires reinstatement rather than compensation

Has been central issue government has been trying to change since 2001

Growing concern with the issue of “mobbing”

Bullying. Can be managers mobbing employees, employees mobbing managers, or employees mobbing employees

Term taken to mean any psychological terrorism at work designed to force the unwanted person from the workplace

Rulemaking ‑National Central Bargaining

Happens on a somewhat irregular basis

1993 tri-partite agreement with confederations and Confindustria has set bargaining framework since Unions agreed to pay moderation in return for government consultation on economic and social policies

1984 confederations disagreed on cuts in scala mobile

CISL and UIL reached agreement with government on concessions but CGIL split internally over issue

PCI asked for referendum ‑ result with small majority for government position of more concessions

Result was government decree cutting scala mobile 38%

Vacation and holiday time

More than Britain

Less than Sweden, France or Germany

Agreements between national unions and employer associations

Grew in importance in 1970s

Tend to occur in 3 year cycles

Cover all employers in sector

Give unions extensive rights to information about companies and their plans

Union rights

Check off required by law until 1994 referendum eliminated it

Can still be negotiated with employer

On employer side Confindustria plays strong coordinating role

Giving industry associations limited autonomy

Rulemaking ‑ Company-level Bargaining

Becoming increasingly the most important level

1970s shop stewards (delegati) emerged and joined together into factory councils (consigli)

Consigli conduct local negotiations

Now supplanted by RSU

Which is now elected by all workers regardless of union status

However unions that sign company-level agreements have right to appoint some members (BLW) RSU conducts work-place level negotiations and has rights to receive information and to consultation on certain issues

Issues

Often same as industry level

Build on industry minima

Supplementary pay increases

Usually negotiated every 2 years

Distribution of hours and overtime

Italy annual hours of work above Germany and France but below other countries in course (2004)

Few legal limitations on strikes

Lockouts not recognized in law

Public sector, political, sympathy strikes all allowed

1990 law designed to prevent strikes in essential public services

Strikes can be called by confederations or unions, both at national, regional or district level, or by RSU

Many are local and spontaneous

Many no called by unions

Often short

Often accompanied by street demonstrations

Many aimed at government and government policy

Frequent pinprick tactics

Stop‑and‑go strikes, wildcats, work-to-rule, sickouts

Perfectly legal to call strikes despite existing collective bargaining agreement

Work days lost second highest in course after Canada 1988-97

Concentrated in services and public admin so high profile

Few large one-day political strikes account for much of loss

Frequent short strikes during agreement negotiations at all levels

Strike cycle related to bargaining cycle

Still wildcat strikes and short general strikes common

Hot Autumn 1969

Turning point for system

Principally over right to lay off ‑

Though union proposal for rolling layoffs and attrition would have accomplished company's goal

Lasted 35 days with four-hour national general strike near end

Longest strike in major Italian industry since WWII

April 1-day protest strike

Called by all three confederations

First such national political strike in 20 years

To protest plans to change the job protection provisions of workers’ statute, i.e. to reduce right of reinstatement

October 1-day protest strike

Same topic as April strike

Called only by CGIL

Other two confederations had negotiated compromise with government

2002 80% of strike days involved in strikes over government policy

2003 and 2004 declined again

Reduced percentage of days lost to political strikes

But still over 50%

March and November 2004 1-day national protest strikes

4th & 5th nation-wide protest strikes against Berlusconi Government

These were about the budget and pension reform

2005 growing conflict in public services

Many of these strikes illegal

Violate 1990 law on strikes in essential services

Unions have right to review layoffs and dismissals

Internally

Before labor courts

See Atlapedia and Labourstart on Germany