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What did you learn from the reading on Italy?
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
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
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
Before labor courts
See Atlapedia and Labourstart on Germany