Neoliberalism Conquering Europe:
Re-commodification of Labour Through
Reforms in Italy, Spain and Greece.
ELISA PANNINI
London School of Economics and Political Science
e.pannini@lse.ac.uk
Draft paper for ‘Austerity versus Social Europe: Neoliberal labor
market reforms on the Mediterranean’ Workshop
Greenwich - 11th December 2015
Structure of the paper
Introduction:
European Social Model - the role of the Troika
Marketization - Labour Re-commodification
Analysis of labour market reforms in
Spain
Italy
Greece
Conclusions
2
European Social Model and a new attitude
The European Social Model is ‘characterised in particular by systems that offer a high level of social
protection, by the importance of the social dialogue and by services of general interest covering activities
vital for social cohesion’ (European Council, 2000).
Keywords: social cohesion and equality; labour market regulation and workers’ protection; model of society
not ‘market driven’ like the American one.
At some point, flexibility and deregulation became key features of European policies, together with
‘macroeconomic stability, restrictive fiscal policy and wage restraint’ as drivers of European Institutions
actions (Ashiagbor, 2001)
2008 Crisis -> Restatement of neo-liberal policies and pressures for reforms in many areas, including labour
markets; Stability and Growth Pact has been reformed to obtain stricter economic and budgetary
surveillance; new mechanisms to ensure compliance to fiscal requirements and enforce sanctions.
Keywords: financial stability, flexibility, de-regulation, labour/capital/products market liberalization.
3
Re-commodification of labour
Marketization -> ‘the imposition or intensification of price-based competition’ (Greer & Doellgast,
2013)
Re-commodification of labour -> reinstating the discipline of labour market competition on workers
(Greer, 2015)
•
Precarisation of employment relationships, obtained by increasing the availability of non-standard
contracts and relaxing employment protection legislation.
•
Vertical disintegration of industrial relations intended as the emergence of ‘new intermediate
markets’ that fragments production processes previously contained within a single organisation
(Jacobides, 2005, p. 465)
•
From welfare to workfare; the focus of government actions moves from offering protection and
training to workers and the unemployed, to emphasising job searching and inflicting sanctions
•
Reducing the influence of non-market institutions on the labour market
4
The role of the European institutions and the ‘Troika’ (EC+ECB+IMF)
Before 2008
Member States are required to conform to specific recommendations, to stay within certain limits of
public debt, and increase European integration by adopting European standards
After 2008
Spain and Italy > increasing pressures, ‘secret letters’ demanding reforms as implicit conditions for the
ECB to buy Italian and Spanish bonds in the secondary market, pushing governments to resign,
introducing principle of budgetary stability in the Constitutions.
Greece > increasing pressures, 3 memoranda confirming the Greece commitment to undertake a series
of reforms in order to be granted loans; effective seizure of the decisional power regarding public
spending, welfare, labour market and any other relevant social issue.
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Precarisation of employment relationships
SPAIN
1984 – Law 32/1984: Contrato
Temporal de Fomento del Empleo:
introducing temporary contracts.
ITALY
1997 – Treu Package: introduction of
new forms of non-standards
contracts.
2010 – Royal Decree Law 10/2010:
2003 – Law 30/2003: new series of
easing dismissals by widening the
atypical contracts; among them
meaning of ‘reasonableness’ concept. ‘lavoro a progetto’, project work.
2012 – Law 3/2012: Contrato de
Apoyo a los Emprendedores: allows to
hire workers with long probation
periods without any security.
2012- Law 92/2012: weakening
protection from unfair dismissals:
choice between reinstatement and
compensation.
GREECE
1998 - Law 2639/98: more flexibility
for the calculation of work-time.
2000 – Law 2874/2000: reduction of
limits for mass dismissals.
2010 - 3899/2010: new forms of fixed
term contracts;
3863/2010: easing individual
dismissals.
2015 - Law Decree 23/2015: new
regulation for collective and individual
dismissals. Further weakening of
reinstatement protection.
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Vertical Disintegration of employment relationships
SPAIN
ITALY
GREECE
1994 – Law 14/1994: Temporary Work 1997 – Treu Package: Temporary Work 2001 - 2956/2001: authorisation of
Agencies are authorised and
Agencies are authorised and
Temporary Employment Agencies.
regulated for the first time.
regulated for the first time.
2010-2013: series of reforms of the
2010 – Royal Decree Law 10/2010:
2003 – Law 30/2003: increase in the Temporary Employment Agencies
Temporary Work Agency allowed to
range of activities and sectors where activities, harmonising to the
operate in new sectors.
Temporary Agency Workers can
European Level.
operate; increase in subcontracting
options and creation of ad hoc
subsidiaries.
7
From welfare to workfare policies
SPAIN
2000 – Royal Decree Law 236/2000:
Renta Activa de Reinsercion Laboral:
commitment to work required to
over-45 unemployed to obtain
assistance
2002 – Law 45/2002: possibility to
obtain unemployment benefit as a
lump sum if invested in business.
ITALY
GREECE
1997 – 469/1997: decentralisation of 2008-2013: starting from 2008,
work placement activities.
development of a whole package of
Active Labour Market Policies.
2015 – 22/2015: Active Labour
Market Policies, with emphasis on
recollocation of the unemployed;
activities contracted to private
agencies.
2011 – Royal Decree Law 3/2011:
sanctions to the unemployed for not
complying with their Job Action Plan.
8
Disempowerment of non-market institutions
SPAIN
2011 – Royal Decree Law 7/2010:
possibility for collective agreements
to rule over the higher level ones.
2012 – Law 3/2012: priority given to
company level agreements.
ITALY
GREECE
2009 and 2011 – tripartite
agreements directed at increasing the
relevance of sectoral and industry
level agreement over the national
level ones.
1998 - Law 2639/98: possibility to opt
out from sectoral and enterprise level
collective agreement.
2011 – 148/2011: proximity
contracts, company level agreements
can derogate to higher levels of
collective contracts and also to some
national laws.
2000 – Shortening the period of
consultation for Social Dialogue.
2010 – 3845/2010: drop out of the
principle of favourability between
different levels of contracts;
4024/2010: association of persons
can sign collective contracts.
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Conclusion
All the three countries show a common fate of progressive convergence toward a more liberal model of
market regulation and capitalism.
All the four mechanisms of labour re-commodification can be identified in the last decades of reforms.
Troika influence on national countries policies has increased; not only in the implementation of specific
reforms, but also in the decisions regarding major democratic processes.
Financial Stability and Growth are allegedly the main goals to reach in the Eurozone. However some of the
policies enforced on Southern European countries – mainly austerity measures – have not proven to be
effective in delivering those results.
The analysis of the labour market reforms confirms that the main trend in Spain, Italy and Greece is
consistent with dominant neoliberal ideology, and also with the marketization process.
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