International corporations and EWCTCA in Italy Francesco Lauria

International corporations and EWC-TCA in Italy Francesco Lauria Centro Studi N. le Cisl GDANSK, 2 nd 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 structure The 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 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).

Foreign multinational companies in Italy • 13, 165 foreign multinationals present in Italy. Employing 1. 2 million people. The turnover in 2013 amounted 542 billion euro. As foreign multinationals in Italy these are companies on average larger than the Italian subsidiaries. The average size is in fact of 89. 1 employees, compared to 3. 5 businesses to national control. Multinationals to foreign driving contribute to the sector of industry and services with 7. 1% of the workforce and 16. 7% of total sales. Highlights include the shares of value added, 13. 6%, and investments, 14. 4%. It is linked to foreign multinationals, 26. 2% of exports and 46. 2% of imports.

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 by Claudio Sottile – Filca Cisl) • 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. . . )

IMPREGILO IFA • 1° International Framework Agreement of an Italian Multinational Company in the sector. • Including the establishment of a monitoring group (composed of representatives from the International Trade Union Federation, the National Trade union organizations and HR Manager of the Company) in order to verify the implementation of this IFA in the building-sites where the Multinational Company is operating. • IFA translated into the most relevant languages present in the Company

Risks and opportunities • It’s crucial the role of the monitoring group or risk of dangerous complicity • Recent cases of foreign building Multinationals making use of blacklists (avoiding to hire workers affiliated to TUs or close to TUs) Agreement/control - instrument of reconciliation between the social partners

IMPREGILO • Monitoring group (regular meeting at least once a year) • Visits at the building-site to verify IFA implementation)

Visit at the Building-site in Iceland exchange of opinions with the local trade unions

Building a dam in Iceland

Project explanation and Visit at the school built by Impregilo for workers’ children in the building site

EXCAVATION OF A TUNNEL

More than 30 ethnic groups present in the building-site

Workers housing in the building site

Protocols – New Agreements to be negotiated? • Ad hoc IFA – for the lenght of the works of the building sites – i. g. Consortium (Impregilo plus 3 other building enterprises) for the Extension Panama Channel. • Same procedure for Qatar? Critical situation for workers (94% migrant workers coming from India, Nepal and Philippines) thousands of fatal accidents

Conclusions • A lot of matters included in the IFAs could be transferred to European level with the involvemente of EWC • Committment from the general contractor to choose subcontractors and suppliers that respect the fundamental human and working conditions rights of workers • Protection of migrant workers and posted workers (equal pay for equal work) – no discrimination