WORKERS’ PARTICIPATION AND REPRESENTATION IN ITALY Salvo Leonardi 1. Information and consultation rights in the Italian system of industrial relations In the Italian system of industrial relations, the issue of the workers’ participation goes back a long time and has been the subject of many debates and normative proposals. Notwithstanding the fact that it is expressly enshrined in the Italian 1948 Constitution (art. 46), concrete steps towards the implementation of workers’ participation has been, over the decades, few and rather disappointing. Probably the most meaningful experience, quite short (1945-50), remains that of joint management committees, during the workers’ occupation of the factories after the WWII and the unsuccessful proposal of a specific law, presented by two socialist ministers in those years, before the expulsion of the leftist parties from the government, in 1947. Since then the Italian case can be seen as theoretically rich, but operatively modest. We can list several trade unions proposals of workers’ participation and control, different sometimes for their different ideological background but having in common the basic refusal of any form of unions involvement in forms and levels of corporate coresponsibility, which could have confused the reciprocate and separated roles of labour and management, or a significant reduction of the union autonomy and power into the industrial conflict. Things have changed in the last years and, for example, the Italian trade unions confederations are all in favour of the Directive 2001/86, related to the European Company. In a such ideological and juridical frame the most remarkable outcomes, in the participatory matter, was - in the mid 80s – the highly formalised system of information and consultation rights experienced by the public-supported holdings. Some laws – such as those passed as the late transposition of the mid-70s EU Directives on collective redundancies, on transfers of undertakings and on workplace safety and health –foresee that workers to be informed and consulted on a relatively wide array of themes. The fulcrum of the system has long remained the collective bargaining, no ruled by the law, as no ruled by the law has remained the constitutional right to strike. From the second-half of the 70s onward, collective bargaining – both at national and company levels – set down the right for workers to be informed and consulted with regards to the company’s production trends, technological innovation and professional training, equal opportunities, company services. The tripartite Social Pact of July 1993 – which establishes the basic regulations governing industrial relations in Italy – endorsed the value of workers’ participation, elevating it as a key element in company bargaining procedures, especially in the areas of production-related wage incentives and of work organisation. At the company level most remarkable experience of agreements concerning workers’ participation, at company level, are those of Electrolux, Whirlpool and some others, like Gucci, some banks or in some medium-side companies of Emilia or Tuscany. 2. Collective representation and participation in the workplace In some countries, the information and consultation rights, in the workplace, are exercised by non-trade union organisations that are elected by all workers. In Italy is different; there’s a single channel, the roots of which can be found in the movement of the Factory Work’s Councils, born in the climate of 1968-69. Its rationale was and is that the substantial unity of PHD - IRES Italy; s.leonardi@ires.it 1 the workers conditions cannot be split up and doubled neither in terms of functions (collective bargaining vs. participation) nor for what concerns the source of legitimation or the constituency (members and no members). The Italian work council is a sort of “amphibious” body; peak representation of the whole workforce in a company, and company cell for the trade unions. In these manner, it is not a no-union council but not even a trade union body, as in Sweden or Britain. Italian trade unions, and the largest in particular – the CGIL – have always suspected of the possible risks of corporative “egoism” at company or professional level. This approach is quite crucial in order to catch the real nature of the Italian unionism, traditionally based on the primacy of the peak confederation on all the sectoral and company instances, as fulcrum of a broad and ecompassing political solidarity and organisational coordination and impulse. Since the social pact of 1993, the work councils will be the “Rappresentanze Sindacali Unitarie” - RSU (Unitary Works Councils). RSU can be elected in every production unit with more than 15 workers by all workers (5 in agriculture), no matter whether affiliated or not affiliated to trade unions. It combines membership representation and electoral representation of all workers. Two thirds of the components of the RSU are elected by universal suffrage with several competing lists, and one third from the lists of the unions who have signed the national sector contract applied in the production unit. This unusual way of distributing the places on the RSU is aimed at achieving a certain co-ordination and link between the two contractual levels described above. That’s also why the RSU have exclusive power on information and consultation rights but shares enterprise negotiation procedures with the regional unions who have signed the national contract applied in the enterprise. The percentage of employees covered by workplace representation, esteemed around 66 % of employees (public sector included), is far above EU 25 average (50%, according to the Dublin’s Foundation). The lists of Cgil, Cisl and Uil are definitively the most voted and supported, with more than 80% of the consensus at the RSU elections. As regards the worker safety representatives (Rappresentante Lavoratori per la Sicurezza RLS), foreseen by the law which absorbs the EU directives on this matter, other thresholds are applied. The RLS is defined by the law as the subject which participates in the safety management process in the workplace through consultation with the employer. Alongside the RSU and RLS, trade union relations at a company level have also been kept, since quite a while, by organisms that are increasingly becoming important: the jointcommissions (50-50). These commissions are not set up to replace collective bargaining but rather to prepare the groundwork for it, providing technical support. Their members are nominated among the elected RSU. The law in Italy which regulates union representation in the workplace is the “Workers Charter” (Statuto dei lavoratori) of 1970. The law, among the other, obliges the employers to allow the election and to recognise the work councils if they have the necessary requisites. The employer who impedes or hinders the exercise of union rights in the company is liable to persecution for antiunion activity according to the Statuto (art. 28). 3. What kind information/consultation and what for? Beyond all possible formal classifications – information, consultation, co-determination – the ability to influence each other will depend on a number of factors, as the issues, the class of decision, the level, the degree of formalisation. All studies on the new work paradigms converge on recognising that, in the post-tayloristic factory workers’ participation has increased significantly on “micro” aspects. On the contrary, when strategic decisions are involved – productive strategies, delocalisation, technical or organisational changes – workers are merely informed. 2 The situation is further aggravated by the increasingly multi-national structure of the modern corporate aggregation, often making it impossible to identify the centres of power where the decisions affecting national/local units are taken. Through the functional differentiation of its internal organisation and the complex web of centring and decentring processes, entrepreneurial power tends to disappear, to escape, from the traditional venues of collective bargaining and negotiation; to escape, that is, by either: a) scaling down, in the decentring of its productive and decision-making centres and in seeking a relationship with workers on an individual basis, or b) scaling up, in creating a legal personality screen, in transforming itself into a transnational entity. Trade unions feel that they can no longer defer the reform of their organisational structures and functions to meet the new global challenges. The most significant outcome of the twodecade long debate have been the EU Directives on EWC and, more recently, on the European company and on information and consultation rights in EU member States. Unlike the first two, the directive 2002/14, about information and consultation, has not been transposed and the inter-confederate negotiation goes head between stop and go. 4. When must trade unions be informed and consulted A key factor in resolving issues is that of timeliness. Information and consultation must be issued prior to the executive stage of the project, and it must be clear and comprehensible even for non-experts. The question is: which are the indicators workers and their trade union representatives must record to understand that a business project involving them directly is about to be implemented? When to defend themselves against charges of anti-trade union conduct or of not having provided information or called trade union for consultations, companies say that they “live by the day”, in the sense that they themselves are unable to make plans, they partly say the truth. But if a company gives up making plans or, better still, if the management of a plant is itself also affected by unexpected decisions at other company levels – changes dictated by the market or taken from the parent company abroad – how do we expect trade unions to be in a position to co-determine these decisions? 5. Formalisation and effectiveness What remains to be clarified at this point is the degree of formalisation with which workers’ participation is made certain, regular, pre-emptive and mandatory. Let’s start with saying that in Italy, the degree of “abstention of law” or “voluntarism”, in the field of the industrial relations, was and remains one of the highest of the most industrialised countries. In concrete, the RSU’s elections are hold where the workers power is strong enough to get them. In order to avoid cases like these, and also to give more certainness to the whole workforce and to their rights, Cgil claims for a law which rules all this matter, establishing clear and transparent criteria in order to measure the representativeness of the signatory unions and, consequently, the democratic consensus about the collective agreements outcomes. This is what successfully happen in the public sector, where all the civil servants enjoy of a law like this since 1997. The Cisl, instead, is against this solution, confirming its traditional prejudice for any legal interference of the public authority in the self-ruled area of the industrial relations. A second consideration regards to the degree of formalisation. Though the thesis sustained by influential jurists according to which if entrepreneurs allow their decision-making powers to be regimented in legally binding procedures, workers and their unions must allow the same with regard to their power to strike, may seem convincing on the legal-formal plane it is not so in the legal-substantial one. In fact, over the past years, the Italian experience (though, not exclusively) has shown that employers’ obligation to disclose information can all too easily be eluded to be “balanced” by a limitation of the right to strike. Entrepreneurs do not want, 3 and often cannot, provide information that is adequate, effective, timely. The same, though, is not applicable for trade union organisation that accept to not break the industrial peace clause. For this reason, the acquisition of formal rights in the area of workers’ participation cannot be, in my opinion, exchanged – politically – by a reduction of the workers/unions right to take industrial action. 6. Conclusions A significant volume of empirical studies on workers’ participation in enterprise management proves that over the past two decades experimentation in this area has been mostly initiated by employers. This inverts an historical trend that had seen workers demand greater industrial democracy and enterprises take defensive action by making recourse to their prerogatives. Significant pieces of the traditional trade union platform are today being taken up and integrated by new corporate strategies. If the idea of industrial democracy had initially been conceived with the aim of extending industrial citizenship and democracy in economics, in the current phase these aspects appear as an ex post justification. The aim is to mobilise human potential through the direct participation of the workers (as single or team work). From the managerial point of view, the notion of participation coincides with that of involvement, a semantic and political shift, where a monistic organisational structure is envisaged, and where the exclusive regulatory agent for labour relations is the enterprise itself. The underlying ideology of this approach consists in considering technical and organisational innovation in neutral terms, super partes. To conclude, I do believe that if, in the light of the new socio-technical paradigms, labour becomes for employers a key resource, and no longer a bond, a shackle, then it will be up to trade unions to utilise this change to impose new contractual conditions and terms to the management. You want me to produce more and better? Fine: but you have to listen to my proposals regarding quality and organisation of work and, beside, a constant effort about vocational training, so to improve and to update the workers skills. If you are not interested, then be ready to bear higher economic and political costs as a consequence of your decisions, because we will pit your unilateralism against the unilateralism of our resistance and conflict. Organisational and technical innovations in the area of labour – of total quality and of human relations in the post-Fordist era – may thus become a new possible opportunity for the advancement of the demands of workers and their trade unions. 4