{"id":4584,"date":"2024-10-07T21:43:06","date_gmt":"2024-10-07T19:43:06","guid":{"rendered":"https:\/\/www.rivistaeco.com\/?p=4584"},"modified":"2024-10-07T21:43:06","modified_gmt":"2024-10-07T19:43:06","slug":"if-unions-are-too-politicised","status":"publish","type":"post","link":"https:\/\/www.rivistaeco.com\/en\/2024\/10\/07\/if-unions-are-too-politicised\/","title":{"rendered":"If Unions Are Too Politicised"},"content":{"rendered":"

The Italian union landscape is changing. While specific trade associations utilise unexpected autonomy to act in concert and achieve results, the three historic confederations are engaging in strict politics through referendums and legislative proposals. The decline in union representativeness stems from hyper-politicisation and an epochal transformation.<\/span><\/i><\/p>\n

There are at least three types of unions in Italy that coexist, albeit with increasing difficulty and contradictions. We are not just talking about the classic tripartite confederations. CGIL, CISL, and UIL are offspring of 20th-century ideologies from political cultures that struggle to be protagonists in the 21st century because, simply put, that world no longer exists. The salaried work that unions were created to protect has transformed into numerous different jobs; the very culture of work is undergoing continuous changes under the impact of a pervasive technological revolution; capital has assumed entirely unexpected and often very opaque forms. The “Great Resignation” is a phenomenon of this century, not the 20th century – as is artificial intelligence. The three major unions have not remained the same; they are evolving, albeit perhaps a bit slowly. Observation of this process is necessary to understand what the new destination of the Italian union movement might be.<\/span><\/p>\n

One Union, Three Functions<\/b><\/h3>\n

There are three types of unions: one political (the confederations); one which negotiates (the industry associations), which handles contracts not just for wealth redistribution at various levels but also agreements for company reorganisations and expansion of corporate welfare, essentially doing its job in the strictest sense; and one providing services (patronage offices and Caaf as well as bilateral entities), offering fiscal or social assistance, supplementary pensions, or healthcare integration or training, transitioning from workers in general to the protection of individuals. This is not merely a lexical issue but a change in perspective. These are service activities, not representation, competing with other entities derived from employer associations, finance (banks, insurance), or professional sectors. This new, though not entirely new, proselytism is also pursued this way. In these para-public activities (in Italy, a portion of workers’ social security contributions goes to fund patronage offices) lies the success or at least the retention of the institutional (and representative) role of Northern European unions, particularly the Swedish. Italian unionism is quietly moving in the same direction because services driven by the progressive aging of the population are becoming increasingly central to the balance of confederal budgets and new unionisation. As Paolo Agnolin, Massimo Anelli, Italo Colantone, and Pietro Stanig explain well in the first issue of Eco, union membership has significantly declined in the last twenty years. Using a methodology more suited to accurately measuring the phenomenon, it is revealed that the unionisation rate in Italy is well below 20%, compared to over 30% as estimated by the OECD.<\/span><\/p>\n

The Entirely Political Action of Confederations<\/b><\/h3>\n

The division among confederations has long existed. However, in this season of deep and radical divergences between CGIL, CISL, and UIL regarding their relationship with the right-wing government led by Giorgia Meloni, the contradictions are more evident, making the identity profiles of the three unions less straightforward, impacting their respective representative strength. The general strikes called by CGIL and UIL, sometimes even before the contested measures are approved (as with the latest budget law) and without achieving anything in terms of participation, are also symptoms of a unionism projected towards new models. Our main unions have always been political entities. Despite their fluctuating autonomy during the first republic, they continued to be political in the so-called second republic, often assuming a substitute role in politics. We are still within the second republic, but the way CGIL, CISL, and UIL “do politics” has decidedly changed. The premise is that the very concept of confederation is “political” due to its foundational idea of horizontal solidarity among different worker categories. The novelty is that the three historic confederations now engage in politics in the strict sense within the political arena using political tools. CGIL, under Maurizio Landini, has promoted the “via maestra,” a variant of the “social coalition” launched almost a decade ago by the then leader of FIOM. Now it is CGIL, not the metalworkers’ association, promoting an alliance among social and cultural entities to defend the Constitution threatened by the premier’s projects and differentiated autonomy. This is not incompatible with union action but certainly foreign to specific union activities. Similarly, Landini’s CGIL decided to collect signatures for four referendums to repeal certain provisions of the Renzi government’s 2015 Jobs Act related to the absence of reinstatement in the case of unlawful dismissal, dismissals in small businesses, liberalisation of fixed-term contracts, and specific procurement rules. It had already done so in 2017 with three questions, one (on individual dismissal rules) not admitted by the Constitutional Court and two others (on vouchers and procurements) surpassed by legislative means. Since 1997, except for one exception, the necessary quorum for the validity of a referendum has not been reached. CGIL is well aware of this as it knows that increasing abstentionism assumes pathological rather than physiological characteristics of a mature democracy. Yet it chose the referendum route. Why? Due to an internal challenge within the Italian left where divisions between so-called reformists and radical leftists have resurfaced. PD secretary Elly Schlein signed the CGIL-promoted referendums, marking a difference from Matteo Renzi’s Blairite approach, as the symbolic referendum concerns (almost ten years later) the abolition of Article 18 for new hires with growing protection contracts. The issue of dismissals is no longer central (not even ideologically) in this phase of rising employment rates with a historical record of around 24 million employed, beyond the not insignificant influence of demographic changes on the data. There hasn’t been a surge in dismissals after the Jobs Act approval. The numbers speak for themselves. In 2023, as Bruno Anastasia reminded us on lavoce.info, dismissals from permanent employment contracts decreased by 40% (350,000 compared to 600,000) from 2014 levels before the Renzi government labour reform approval. According to INPS data, in 2019 (pre-COVID period), economic dismissals were 352,701 compared to 271,262 in 2022; disciplinary dismissals were 59,144 compared to 88,288 (see table). Overall (considering all other reasons), permanent employment contract terminations were 1,260,496 in 2019 and 1,378,584 in 2022, an increase of just over 118,000 units, while resignations increased by over 200,000 units in the same period. This is a significantly different context from ten years ago, with the economic cycle improving and its positive effects on the labour market. However, CGIL has occupied the field, forcing PD and M5S leaders to define themselves in relation to union choices.<\/span><\/p>\n

Termination of Permanent Contracts<\/b><\/h3>\n
\"\"
Note: The data covers the January-September period for each year. Source: INPS.<\/figcaption><\/figure>\n

But there’s more. CGIL has already drafted a comprehensive popular initiative bill of 87 articles on “Provisions for Stable, Secure, and Dignified Work.” The confederation has yet to decide how and when to start collecting the signatures needed to present it to Parliament, but the referendum-popular legislative initiative strategy is clear: act as a political\/partisan entity, accompanied in more politically union initiatives (strikes and demonstrations) by UIL in a sort of neo-pansyndicalism. CGIL, together with UIL, has also chosen to participate with almost all opposition parties in collecting signatures for the referendum request against differentiated autonomy. Thus, CGIL is acting both within politics and with politics. With the opportunity in this latter case that the possible simultaneous referendums could help achieve the quorum on all questions. On the other hand, even CISL, under Luigi Sbarra, has embarked on the path of popular legislative initiatives, almost contravening one of its political-cultural values, the autonomy of bargaining from the law. In the new framework, CISL collected signatures for a bill on worker participation in companies, implementing Article 46 of the Constitution, presented the text in Parliament, obtained support from the current centre-right majority, and now that proposal has all the characteristics to become law before the year’s end. An objective that might explain the Catholic confederation’s willingness to sharply diverge from CGIL and UIL in judgments on the Meloni government’s actions. The government, outside any logic of social concertation, has decided to directly challenge unions in worker representation: the two decrees issued symbolically on May 1st of last year and this year on labour matters apply to all. But the incursions into the union field are not only from the right. Opposition parties have endorsed the legal minimum wage, breaking the taboo of the inviolability of matters strictly within union competence.<\/span><\/p>\n

More Autonomy for Trade Associations<\/b><\/h3>\n

In this context of relationships defined exclusively within political dynamics between the government and union confederations, the trade associations operate with significant strategic autonomy without a clear central direction but remain surprisingly united. Thus, bank employees managed to secure a contractual increase of over 400 euros monthly thanks to the profits made by banks, compared to an average of around 200 euros for other associations. Signs of a new possible wage jungle but also of corporate pushes that can come from associations favoured by the current conjuncture. The push for renewed association autonomy also comes from the expansion of bilateral entities co-managed by unions and companies outside a conflictual logic on matters such as training, social safety nets, safety, and health. The same fragmentation and instability of labour relations favour (think of the historical case of the funds in the construction sector) the intervention of social bodies where the public apparatus struggles to reach. There are enormous opportunities for new bargaining. Look at complementary pensions: only 36.9% of workers (latest Covip report) are enrolled in a supplementary fund, of which about 40% are in a negotiated fund, compared to almost 88% in the Netherlands or 70% in Germany (OECD data). Italian exceptions are confirmed by open funds and Pip (individual pension plans) driving supplementary pension enrolments. Bridging these gaps can be a challenge for the union. Contracts are renewed and services are provided, guaranteeing unions annual revenues exceeding half a billion euros according to estimates from a few years ago by political scientist Paolo Feltrin. They manage parts of complementary welfare of negotiated origin (national or company-level) also with a function of defending workers’ real income. It’s a union changing its skin\u2014difficult not to see it. Given these circumstances, it is legitimate to ask whether hyper-politicised union confederations are still needed. The decline in union representativeness lies not only in the epochal transformation of work but also here. The idea of a union-party has long exhausted its propulsive force with the end of concertation, and the race towards politics risks becoming an obstacle to union action itself.<\/span><\/p>\n

Bio<\/b><\/em><\/p>\n

Roberto Mania is a journalist and former economic correspondent for <\/span>Repubblica<\/span>. His latest book is “Silent Capitalists. The Revenge of Family Businesses” (Egea 2024).<\/span><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

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