1	Italian IRHRM Lecture 1of 4 Themes and Environments
2	Administrative Paper Reminder Do reading on Italy for next time
3	Review Ideologically incompatible French system ‑ nonetheless economy one of the more successful in economic growth in post‑war period Also fairly low conflict system despite the extreme rhetoric
4	Today I. Themes of Italian Industrial Relations II. IRHRM Environments in Italy
5	I‑ Themes of Italian IRHRM Political and ideological incompatibility and instability Fragmented labor movement Limited but growing government intervention High conflict system Increasingly decentralized system, growing importance of shop floor
6	II‑ IRHRM Environments in Italy The Political context Population in 2005 ‑ 58.1 mil. Republic and Parliamentary Democracy Weak democratic traditions Fascism 1922‑44 1946 referendum ended monarchy Oddity - secret ballot votes in parliament 2 house parliament - Senate and Chamber of Deputies President elected by Parliament and regional representatives for seven year term
7	II‑ IRHRM Environments in Italy The Political context - Political Parties Christian Democrats ‑ DC Italian Communist Party ‑ PCI Accepted NATO Cooperated with DC Record of efficient and successful local administration Adopted social democratic program and changed name to Democratic Party of the Left, PDS. Now Democrats of the Left. Marxists split to much smaller Communist Renewal Party
8	II‑ IRHRM Environments in Italy The Political context - Political Parties Italian Socialist Party ‑ PSI Minor Center Parties Italian Republican Party ‑ PRI Italian Liberal Party ‑ PLI Italian Social Democratic Party ‑ PSDI New parties to emerge in 1990s include Greens
9	II‑ Political Context No party ever has majority in Chamber of Deputies 1948 on DC was always core of government 1948‑62 always DC and small center parties After 1962 PSI was also in coalitions PCI was never in government since 1947 but did support government 1976‑79
10	II‑ Political Context 1992-94 scandals and investigation Including 20% of Parliament, two former Prime Ministers and hundreds of business people Decimated DC and PSI Communists relatively unscathed 1993 law to elect most of both houses in single representative electorates
11	II. Political Parties House of Liberties (right alliance) Olive Tree (left alliance) Some of the constituent parties are themselves alliances of even smaller parties
12	II‑ The Political context Least politically stable country in course 1945-2005 about 60 separate governments Elections never changed governing parties - at least until 1994 1994 election produced first center-right coalition since WWII but lasted only 8 months and collapsed in scandal Seems perhaps to be moving toward left versus right alignment
13	II‑ Political Context Much of the flux in parties ultimately a product of the end of the cold war DC and PSI broke up over scandals Realignment of Communists Emergence of Northern League Emergence of National Alliance
14	II‑ IRHRM Environments in Italy The Technological Context Modern Industrial Economy with sizable traditional sector especially in south Largest agricultural sector of countries in course Second lowest per capita income of countries in course
15	II‑ IRHRM Environments in Italy The Economic Context 1970s through 1990s higher growth than most other countries Labor Force Participation lowest in course 8.6% unemployment 2004 1991-2001 lowest job creation rate in course (almost none)
16	II‑ Economic Context More trade dependent than France, almost exactly as much as UK Very large informal economy ‑ Perhaps 20‑30% GDP Unreported and untaxed Makes data on GDP, labor force, unemployment, etc., unreliable
17	II‑ The Economic Context Government controls 50% of output, largest of any western nation Public sector jobs virtually all distributed on basis of party patronage Government spending Gender Equality Child Poverty
18	Next Time Ideology, Trade Unionism and Employer Organization
19	Italian IRHRM Lecture 2 of 4 Ideology, Trade Unionism and Employer Organization
20	Administrative Paper reminder Reading for next class – finish reading on Italy
21	Review ‑ IRHRM Environments Parliamentary Democracy and Republic with weak democratic traditions Modern industrial economy but less so than other countries in course
22	Today I‑ Ideology II‑ General Characteristics of the Union Movement III‑ The Confederations ‑ General IV- Confederations - Specific V‑ Other Union Issues VI‑ Employer Organization VII‑ Government Organization
23	I‑ Ideology Not highly compatible Recent history of fascism Influence of Marxism Current range from fascism and monarchism to syndicalism PSD now quite conservative Parties Employers anti‑union Unions range from Marxist to moderate Catholic Overall little ideological stability but perhaps more than France
24	II‑ General Characteristics of the Union Movement Union statistics Density 35% 1998 - data could be wildly off - union self reports As in France, membership not always best measure of support. Many supporters pay dues irregularly or not at all Unions organized at national, regional and district levels, but traditionally not at workplace level
25	II‑ General Characteristics of the Union Movement Background Unions began in early twentieth century largely as adjunct of socialist parties Agricultural workers have traditionally played large role in Italian unions After war unions often substantially financed by political parties or other outside bodies
26	III‑ The Confederations ‑ General 1950s confederations closely tied to political parties ‑ little autonomy Unaffiliated (autonomous) unions important in several sectors and grew in 1980s 3 major confederations trying to reorganize their affiliates into about 20 industrial federations each Long history of ideological schism but 1980s and 1990s considerable cooperation among the confederations
27	IV- Confederations - Specific CGIL ‑ Italian General Confederation of Labor About 5.2 million 1997, ~ 50% retirees ‑ strongest among blue collar industrial workers Left‑wing oriented ‑ ties to both PCI and PSI CISL ‑ Italian Confederation of Workers Unions About 3.9 million 1997, ~50% retirees Large Catholic element but not exclusively Catholic UIL ‑ Italian Union of Labor About 1.7 million 1997, ~25% retirees ‑ strongest in public sector Ties to both PSI and small center parties but also now formally autonomous
28	V‑ Other Union Issues All three confederations lost members since 1981 Minor confederations CISNAL linked to neofascist party but plays little role in IR. Has now been replaced by UGL Northern Leagues have formed their own union confederation 1994 minor federations formed ISA, Entente of Autonomous Unions in effort to increase their influence with government Only about half of all members pay dues Until 1969 no union presence at workplace level at all
29	VI‑ Employer Organization Employer Approaches to IR Traditionally resisted unions and bargaining Repressive measures ‑ FIAT 1950s notorious Employer Associations ‑ general Industry associations less important than central employer confederations Industry associations grew in importance in 1970s due to decentralizing trend in bargaining
30	VI‑ Employer Organization Confindustria ‑ General Federation of Italian Industry Private Sector Strongest in manufacturing and construction Roles Service general economic and political needs of affiliates IR ‑ negotiates at national level and keeps tight rein on industry agreements, especially crucial metal agreement Has successfully merged separate employer associations in some sectors into single industry IR associations Traditional ties to DC
31	VII‑ Government Organization Government as employer Has quite a bit of manufacturing, petroleum, coal Intersind ‑ bargains for industrial sector Government as regulator Little in the way of specialized government agencies or mechanisms Ministry of Labor will mediate dispute at joint request of parties Labor Courts Enforce various aspects of procedural law Enforce certain substantive laws Traditional government aloofness from IR regulation
32	Next Time Rule-making: Legal Regulation and Collective Bargaining
33	Italian IRHRM Lecture 3 of 4 Government Organization, Legal Regulation and Collective Bargaining
34	Administrative Paper reminder
35	Review Modern Industrial Economy with unstable political system Ideologically split labor movement Strongest at confederal level Has some independence from political parties Has achieved some cooperation across ideologies Well organized employers, especially at confederal level Government has played limited role in IRHR regulation
36	Today I‑ Rulemaking ‑ Public Policy II‑ Rulemaking ‑ Collective Bargaining
37	I‑ Rulemaking ‑Public Policy Procedural Before 1960s little government regulation Still no regulation of bargaining units or representation rights or which issues subject to bargaining 1959 ‑ agreements given legal status as minimum standards covering all employees Growing role for legislation since late 1960s Workers Statute ‑ 1970 ‑ single most significant statute Every employee 10 paid hours year for union business These rights available only to representative unions
38	I‑ Rulemaking ‑Public Policy Substantive Social security 1993 raised retirement age of women to equal that of men (60) and made some other changes to reduce pension costs 1995 reduced pensions with gradual shift to defined contribution scheme and gradual increase in retirement ages to 65 CIG ‑ Wage Integration Fund Guarantees up to 80% pay during layoffs Has become essential for firms seeking to implement technological or structural change Law requires just cause for dismissal Growing concern with the issue of “mobbing”
39	II‑ Rulemaking ‑Collective Bargaining - General Agreements for fixed duration issues can still be raised any time absence of no‑strike clauses No compulsory unionism Agreements cover non‑unionists as well as unionists Bargaining in public administration began only 1970 Legal framework only formalized 1983 Unlike private sector, some issues not bargainable 3 levels of bargaining with functions varying over time
40	II‑ Rulemaking ‑National Central Bargaining Between union confederations and major employer central bodies, principally Confindustria and, since 1983, government 1950s this was only level of wage bargaining Recently, source of much bargained legislation ‑ corporatism Employment Costs below all other countries in the course 1993 tri-partite agreement with confederations and Confindustria has set bargaining framework since
41	II‑ Rulemaking ‑Collective Bargaining 1990s ‑ Scala Mobile was been the most contentious issue Government desired to cut it to reduce inflation 1984 confederations disagreed on cuts in scala mobile July 1992 law providing scala mobile replaced with system providing small monthly increases breaking automatic link to inflation
42	II‑ Rulemaking ‑ National Central Bargaining Other issues at national level 4 weeks vacation standard Vacation and holiday time Retirement pay
43	II‑ Rulemaking ‑ Industry Bargaining Agreements between national unions and employer associations Four such major agreements in industrial sector metals textiles chemicals construction Metal agreement national pattern setter
44	II‑ Rulemaking ‑ Industry Bargaining Typically issues exclude those covered in national central negotiations ‑ usually specify minimum Topics job classifications and job descriptions incentive systems discipline union rights On employer side Confindustria plays strong coordinating role
45	II‑ Rulemaking ‑ Company-level Bargaining 1948‑70 unions not legally present at workplace Workers Statute ‑1970‑ legitimated firm union representative ‑ RSU 1970s shop stewards (delegati) emerged and joined together into factory councils (consigli) Now supplanted by RSU
46	II‑ Rulemaking ‑Company-level Bargaining Produced single unified representative structure at work place ‑ structure strong force for union unity Issues supplementary pay increases distribution of hours and overtime assignment of jobs to classifications health and safety
47	Next Time Italian IRHRM‑ Conflict, Administering the Rules, Themes and Comparisons
48	Italian IRHRM Lecture 4 of 4 Conflict, Administering the Rules, Themes and Comparisons
49	Administrative Do reading in BLW on Germany for next time
50	Review Employers well organized Government has traditionally played little role in regulating IRHR ‑ growing regulation of substance and procedure Bargaining at national, industry, and workplace levels
51	Today I‑ Industrial Conflict II‑ Administering the Rules III‑ Summary and Comparisons
52	I‑ Industrial Conflict Right to strike included in constitution Few legal limitations on strikes Strikes can be called by confederations or unions, both at national, regional or district level, or by RSU Unions pay no strike benefits Frequent “pinprick” tactics
53	I‑ Pattern of Industrial Conflict Work days lost second highest in course after Canada 1999-2003 Most strikes short and called by local grass roots levels 1984-2001 most strikes over bread and butter issues rather than ideological or political ones Frequent short strikes during agreement negotiations at all levels
54	I‑ Hot Autumn 1969 Called by informal leaders and reflected rank and file discontent with union leadership and structure 38 million work days lost Led to passage of Workers Statute Also direct cause of growth of workplace-level unionism and workplace-level bargaining
55	I‑ Fiat Strike - 1980 Principally over right to lay off Lasted 35 days with four-hour national general strike near end 4 days after general strike thousands of supervisors, guards, and office workers marched for return to work and unions quickly agreed to compromise settlement which many members saw as sell out Government fell during strike
56	I‑ Industrial Conflict 8-hour general strike by 10 million (1/2 workforce) 1982 when employers announced unilateral plan to end scala mobile Overall 1980s saw decline in strike time and shift from private sector to public sector strikes
57	I- Pattern of Recent Conflict Dramatic increase in conflict in 2002 April 1-day protest strike October 1-day protest strike 2003 and 2004 declined again March and November 2004 1-day national protest strikes 2005 growing conflict in public services
58	II‑ Administering the Rules Consigli gained major role early 1970s for first time Unions have right to review layoffs and dismissals 1983 national agreements Desire to reduce local disputes Set up arbitration system to foster settlement of grievances
59	III‑ Themes and Comparisons Political and ideological incompatibility and instability Fragmented labor movement Limited but growing government intervention High conflict system Growing importance of the shop floor level Comparison to other systems