A good alternative to the minimum wage

Talks between the three trade union confederations and business representatives concluded at dawn yesterday with an agreement that sets out the terms of the collective bargaining in detail. This is a significant step both in terms of the breadth of the sectors involved – given that virtually all business representatives, from Confindustria to the retail, craft and cooperative sectors, have signed – and in terms of the content, which, although preliminary, sets out a path for future collective bargaining. The decision – also supported by the government through the 1 May decree on the ‘fair wage’ – is to prioritise the role of the social partners over state intervention.

The CISL has been particularly active, having based its strategy for decades on the autonomy of trade union activity and representation. A development in collective bargaining that, in addition to wages, addresses crucial issues such as safety, workers’ health and participation in company decision-making allows working conditions to be tackled in a comprehensive manner, proving more far-reaching and effective than any legislative intervention. Another interesting aspect is that the scope for any state intervention on the minimum wage is limited: the state could only intervene regarding the pay of workers not covered by collective bargaining, a group which, given the breadth of the business organisations that have signed the pact, is very limited. In a market economy, collective bargaining is an essential element: it may take place ‘peacefully’ or through even bitter struggles, but it underlines the autonomy of the social partners, who assume the responsibility of effectively representing the interests of their members without delegating this to the state. Naturally, a framework agreement is important, but ultimately it is the sector-by-sector agreements that count. On this point, while a clear commitment is evident, the results will need to be evaluated on a case-by-case basis.