Agreement between trade unions and businesses: faster contract renewals, wages linked to inflation and an end to ‘pirate’ contracts

This morning, following a marathon session lasting almost eighteen hours, negotiations concluded between the CGIL, CISL and UIL trade unions and the thirteen employers’ organisations, ranging from Confindustria to Confcommercio, and from craft trades to cooperatives. The parties have initialled a draft framework agreement on representation, contractual arrangements, wages and the content of collective bargaining. The agreement is supplemented by sections on health and safety, training and participation.

With regard to remuneration, individual collective agreements must provide for a periodic review, either annually or every two years, to adjust pay in line with inflation as measured by the IPCA-NEI index, i.e. net of imported energy costs. This mechanism is not new: it is already in place, amongst others, in the collective agreements for metalworkers and chemical workers. The agreement also defines the components of the minimum wage (TEM) and the total remuneration package (TEC), and sets out the financial provisions for periods when the collective agreement is not in force.

The text sets out a precise timeline: proposals must be submitted six months before the deadline, the other party must respond within one month, and negotiations begin immediately afterwards. The aim is to reduce the delays which, in recent years, have left millions of workers with expired contracts.

The most sensitive chapter concerns representation, which involves both trade unions and employers. For workers, the weighting of trade unions will be measured and certified using a combination of membership numbers and votes, as is already the case in the public sector. For employers’ organisations, qualitative criteria are envisaged, including the organisation’s history, alongside a quantitative criterion based on INPS-Uniemens data. The stated aim is to combat so-called ‘pirate contracts’, signed by trade unions with little representativeness and often offering lower levels of protection and wages.

Among the new measures, explained UIL General Secretary Pierpaolo Bombardieri, is the possibility of holding a vote on the establishment of RSUs in all workplaces, even when the request is made by at least 30 per cent plus one of the workers.

Negotiations began at the end of July. In addition to Confindustria and Confcommercio, the following organisations were represented at the negotiating table: Agci, Casartigiani, Claai, Cna, Confapi, Confartigianato, Confcooperative, Confesercenti, Confetra, Confservizi and Legacoop. The last agreement on this matter dated back to the 2018 ‘Patto della fabbrica’, which had been signed by CGIL, CISL, UIL and Confindustria; this time, therefore, the scope is much broader.

“We have signed a historic agreement, following one of the longest and most difficult rounds of negotiations in trade union history,” said Bombardieri, who believes the agreement lays the foundations “for wage growth and for putting an end to ‘pirate’ contracts”.

For the General Secretary of the CISL, Daniela Fumarola, this is “a landmark agreement”, in the tradition of the major inter-confederal agreements in the history of the Republic, drawn up by trade unions and businesses “in full autonomy” following “lengthy and at times acrimonious” discussions. “Whilst Italy is divided on everything,” she added, “the world of work and business have set themselves serious and enforceable rules.” The first result, she emphasised, will be visible in pay packets, thanks to the fixed timelines for contract renewals.