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Employment Policy Convention, 1964 (No. 122) - Italy (RATIFICATION: 1971)

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 2015-Italy-C122-En

The Government provided the following written information.

According to the latest National Institute of Statistics (ISTAT) data (June 2015), there was an increase in the employment rate between April and March 2015. In April, the numbers in employment increased by 0.7 per cent (159,000 more employees than the previous month), with the level of employment returning to the levels of 2012 and the employment rate rising to 56.1 per cent. The unemployment rate has fallen to 12.4 per cent. According to ISTAT, the rate of unemployed young people aged 15–24 who are actively seeking work has fallen to 40.9 per cent. The Organisation for Economic Co-operation and Development (OECD) has also provided estimates for employment in Italy, has welcomed the Jobs Act and expects a fall in unemployment in 2016.

Main labour market indicators, per gender, geographical area and age (2012–14)

 

2012

2013

2014

Employment rate

Unemployment rate

Activity rate

 

Employment rate

Unemployment rate

Activity rate

 

Employment rate

Unemployment rate

Activity rate

Gender

Male

53,4

9,8

59,2

51,9

11,5

58,6

51,7

11,9

58,7

Female

35,0

11,8

39,7

34,5

13,1

39,7

34,6

13,8

40,1

Area

NW

48,7

8,0

52,9

48,3

8,9

53,0

48,2

9,3

53,1

NE

50,7

6,6

54,3

49,6

7,7

53,7

49,7

7,7

53,9

Central

46,6

9,4

51,4

45,9

10,7

51,4

46,4

11,4

52,3

South

34,7

17,1

41,9

33,2

19,7

41,3

32,8

20,7

41,3

Age

15-24

18,5

35,3

28,6

16,3

40,0

27,1

15,6

42,7

27,1

25-29

57,3

18,1

69,9

52,7

22,2

67,7

51,7

23,6

67,6

15-29

32,3

25,4

43,3

29,1

29,8

41,5

28,3

31,6

41,5

30-44

72,5

9,7

52,9

70,8

11,1

79,6

70,2

11,7

79,5

45-54

72,0

6,7

77,1

70,9

8,0

77,0

70,3

8,4

76,7

55 and above

17,3

4,9

18,2

18,2

5,3

19,2

19,5

5,0

20,5

15-64

56,6

10,8

63,5

55,5

12,3

63,4

55,7

12,9

63,9

Total

43,9

10,7

49,1

42,9

12,1

48,8

42,8

12,7

49,1

Source: ISTAT, RCFL media annuale.

 

Unemployment rate per geographical area and age (2012 and 2014)

 

2012

2014

15-24

25-29

15-29

15 and above

15-26

25-31

15-31

15 and above

Piemonte

32,1

12,6

20,9

9,2

42,2

19,8

29,3

11,3

Valle d’Aosta

25,6

6,0

14,2

7,1

34,9

14,4

22,7

8,9

Lombardia

26,5

10,9

17,2

7,4

31,2

12,8

20,3

8,2

Liguria

30,2

13,5

20,7

8,1

45,0

24,8

32,9

10,8

Total North West

28,4

11,5

18,5

8,0

35,5

15,7

23,8

9,3

Trentino alto Adige

15,1

7,3

11,1

5,1

18,4

8,9

13,4

5,7

Veneto

23,3

8,8

15,0

6,4

27,6

10,9

18,0

7,5

Friuli Venezia Giulia

29,7

11,1

18,1

6,7

27,1

19,2

22,4

8,0

Emilia Romagna

26,7

11,2

17,5

7,0

34,9

15,7

23,7

8,3

Total North East

24,0

9,8

15,8

6,6

29,0

13,2

19,9

7,7

Tuscany

29,4

13,1

19,9

7,8

35,7

18,8

25,9

10,1

Umbria

34,6

15,9

23,8

9,5

42,5

21,6

30,0

11,3

Marche

28,6

16,5

21,4

9,1

36,4

15,0

23,4

10,1

Lazio

40,0

20,9

28,4

10,6

49,0

25,4

34,2

12,5

Total Central

34,7

17,6

24,5

9,4

42,4

21,8

29,9

11,4

Abruzzo

34,0

17,7

24,9

10,8

47,4

22,0

31,6

12,6

Molise

41,5

27,8

33,5

12,0

49,3

35,3

40,9

15,2

Campania

48,4

33,1

40,3

19,2

56,0

38,2

46,4

21,7

Puglia

41,6

25,3

32,6

15,7

58,1

34,1

44,9

21,5

Basilicata

49,9

27,4

36,9

14,5

46,6

31,3

37,5

14,7

Calabria

53,9

30,9

40,8

19,4

59,7

45,8

51,9

23,4

Sicily

51,2

33,3

41,7

18,4

57,0

42,5

49,2

22,2

Sardinia

47,5

28,0

36,5

15,4

50,0

39,8

44,3

18,6

Total South and islands

47,1

29,5

37,5

17,1

55,9

37,8

45,9

20,7

Total Italy

35,3

18,1

25,4

10,7

42,7

23,6

31,6

12,7

Source: ISTAT, RCFL media annuale.

 

In recent years, Italy has adopted important labour market reforms (the so-called Fornero Reform in 2012, the Youth Plan Reform in 2013 and the Jobs Act in 2014). All of these reforms are aimed at reducing the high unemployment rate and, in particular, the youth unemployment rate, through a structural revision of public employment services and a simplification of the types of labour contracts. The Fornero Reform (Act No. 92/2012) established several protection measures for the working conditions of women and young workers and relaunched apprenticeships and vocational training. The Youth Plan (Decree No. 34/2013, converted into Act No. 99/2013) is a follow-up to an earlier reform, in accordance with the Europe 2020 Strategy. It introduced measures aimed at reducing the mismatch between labour demand and supply and at tackling youth unemployment through the implementation of the European Youth Guarantee Programme and economic incentives for employers who hire workers. Act No. 147/2013 also established the Fund for Active Policies to enhance the employability and reintegration of workers into the labour market. The latest measure has been the Jobs Act Reform (Acts Nos 78/2014 and 183/2014) which, through subsequent legislation, will include: the reform of the public employment service system and the establishment of a National Employment Agency; the revision of the system of social shock absorbers and provisions on the dismissal of workers; the simplification of types of contracts (see below, the reform of the apprenticeship contract); and the creation of opportunities to improve the balance between life and work, particularly for women. Two of these reforms have been implemented through the recent Legislative Decrees Nos 22/2015 and 23/2015, and the others will be adopted shortly, in accordance with the legislative schedule. Emphasis should be placed on the “replacement contract” (section 17 of Legislative Decree No. 22/2015), which allows unemployed persons, after a “profiling” procedure in the public employment services, to receive a bonus related to their specific conditions of employability, by signing a replacement contract with private or public employment services. Under this agreement, the unemployed receive stronger and more intensive services to enhance their labour market integration. The contract is financed by the Fund for Active Labour Policies, in accordance with section 17 of Legislative Decree No. 22/2015. With regard to the establishment of a National Employment Agency, the aim of the reform is to improve coordination of labour market services throughout the national territory, implement active labour market policies (ALMPs) and create a stronger network of all bodies with competence in the labour market field. Act No. 183/2014 provides for the involvement of the social partners in defining the broad policies of the Agency. Italy has also adopted several measures (Act No. 92/2012, section 4(11)) to enhance the employability of women through the introduction of incentives to hire unemployed women (particularly the long-term unemployed or women living in areas with a high unemployment rate). Recently, a ministerial decree adopted in December 2014 identified a list of economic sectors and professions for 2015, based on ISTAT data, in which there is a high rate of employment disparities between men and women (over 25 per cent), with a view to the provision of incentives (in the private sector), in accordance with Act No. 92/2012. The main employment disparities are in industry (particularly construction, mining, waste management, energy and manufacturing), services (transport and warehousing, IT), as well as in the following occupations: the army, artisanal work, farming, the technical professions, engineers and entrepreneurs. The Stability Act of 2015 (Act No. 190/2014) also established a so-called “baby bonus” (€80 a month) for families on low incomes for each baby under 3 years of age. Finally, with a view to addressing regional disparities, a more rational use is being made of structural funds (the Action and Cohesion Plan).

With regard to youth employment, Legislative Decree No. 104/2013 introduces new instruments to strengthen career guidance in secondary schools and a pilot programme (through apprenticeship contracts) for students in the last two years of secondary school. The Youth Guarantee Programme was launched last year (1 May 2014) and, at the moment (4 June 2015), young people who join the Youth Guarantee Programme are 604,854, with a funding of €1.5 billion. The gender composition of the registered people is: 51 per cent male and 49 per cent female. Some 8 per cent of those registered are in the 15–18 age group, 53 per cent are in the 19–24 age group and 39 per cent are over 25. Among these registered young people, 329,656 have subscribed to the “service pact” and have been profiled (168,009 males and 161,647 females). This Programme has represented, for us, a new way to coordinate and manage the labour market services, to create a competitive–cooperative system between private and public employment services, taking into account the structural reforms we are dealing with in these fields, with the delegation law No. 183/2014 (Jobs Act). The Ministry of Labour and Social Policy has developed several measures and approaches to address youth unemployment, together with the regions. A website has been established for the Youth Guarantee Programme (www.garanziagiovani.it). A “profiling methodology” has been developed for young people to place them in a specific cluster and to direct them to specific and tailored measures (such as vocational training, traineeship, apprenticeship, civil service, self-employment or job incentives for employers). The regional activation plans contain specific programming of financial resources and active strategies for young people, including ongoing and future measures financed by the European Social Fund or from national/regional resources. Another important tool to enhance youth employment is the European Employment Services (EURES) Network, designed to facilitate the free movement of workers within the European Economic Area. Partners in the network include public employment services, trade unions and employers’ organizations. The main objectives of EURES are to inform, guide and provide advice to potentially mobile workers on job opportunities, as well as living and working conditions in the European Economic Area, and to assist employers wishing to recruit workers from other countries. In the context of the Employment and Social Innovation (EaSI) Programme, reference should be made to the “Your first EURES job” project, which supports work experience abroad for young people aged 18–35 (including apprenticeships, traineeships and job interviews). In line with the EU 2020 Strategy, the “Welfare to work” action system was implemented in 2012–14, including ALMP plans for the employment of young people, workers aged over 50, women and the unemployed, which are managed by the regions and provinces.

With reference to education and training policies, it should be noted that the general outline of the National System for the Certification of Skills was established by Legislative Decree No. 13/2013. As a precondition for access to the European Social Fund for the period 2014–20, and in compliance with the country-specific recommendation of 8 July 2014 (point 6), Italy has undertaken to continue the implementation of the National Directory, with the aim of developing a single reference for the recognition and standardization at the national level of regional qualifications. This commitment led to the adoption of an Agreement in the State–Regions Conference in January 2015, envisaging a system of operational references for the certification of regional vocational qualifications, by issuing the National Reference Framework of regional qualifications and establishing minimum standards for the validation and certification of skills. This agreement has been reflected in an Inter-Ministerial Decree issued by the Ministries of Labour and of Education. The cornerstone of the system is the establishment of the National Framework of Regional Qualifications, which serves to organize, aggregate and accord nationwide recognition to over 2,600 regional vocational qualifications. This system is based on the expansion of statistical classifications (economic activity and job classifications) involving a mapping of the labour market and of occupations. The descriptive approach adopted by the system will allow progressive extensions (vocational training, the education system, university degrees, vocational qualifications and apprenticeship profiles), as well as dynamic updates. The Directory is also a valuable tool for employment information systems, as it will lead to a more targeted and timely matching of labour market services. It also helps in the development of individualized active policy measures and the strengthening of lifelong training and geographical and sectoral mobility. The extensive use of statistical classifications provides a basis for enhancing the full and systematic interoperability of all of these measures with the employment information systems of other Member States of the European Union, OECD countries and the EURES network. Moreover, within the Youth Guarantee Programme, an inter-institutional working group has been established within the Ministry of Labour on the validation and certification of skills acquired in non-formal contexts, such as national civic service. With a view to increasing youth employment, through the Jobs Act Reform, the Government also intends to focus on measures related to work-based learning, particularly through apprenticeship contracts. More generally, the aim is to foster the use of such contracts by redefining: training provided both within and outside enterprises; training content and employers’ obligations; and the general criteria of apprenticeship in technical and vocational schools, with particular reference to the number of hours of schooling during apprenticeship. A specific legislative decree will be adopted to rationalize employment incentives, including apprenticeship. A reform was also introduced in 2013 in the field of adult education to reorganize adult education centres, which are now part of the Italian education system and can issue certificates and qualifications (Regulation No. 263/2012). In the field of education and vocational training, national standards have been defined for 22 qualifications (three years) and 21 diplomas (four years), described in terms of competences, in line with the provisions of the European Qualifications Framework. In recent years, the emphasis has been on improving tertiary education and higher technical education and training with a view to creating training supply that is more closely matched to the changing requirements of the labour market.

With regard to cooperatives, the Ministry of Economic Development in 2014 adopted several measures to promote employment through cooperatives. In particular, the Ministerial Decree of 4 December 2014 established a new incentive/fund to promote the creation and development of small and medium-sized cooperatives. The fund can be used to finance cooperatives established by workers from companies in crisis, cooperatives to manage companies confiscated from organized criminal organizations or the renovation of cooperatives in southern Italy

 

No. of cooperatives

Category

No. of cooperatives

Other types of cooperatives

8 960

Cooperative credit banks

394

Agricultural consortia

57

Cooperative consortia\federations

304

Credit unions and cooperative insurances

478

Fishing cooperatives

1 326

Agricultural and breeding production cooperatives

5 568

Consumers’ cooperatives

1 381

Retailers’ cooperatives

156

Farmers’ cooperatives

3 875

Worker–producer cooperatives

51 108

Transportation cooperatives

2 155

Housing cooperatives

10 585

Social cooperatives

21 650

Mutual aid societies

222

No category

1 539

Total amount

109 758

With "prevalent mutuality"

101 739

No "prevalent mutuality"

5 313

Last update: 26 May 2015

 

Région

Cooperative by region

Abruzzo

2 195

Basilicata

1 775

Calabria

3 849

Campania

11 612

Emilia Romagna

8 877

Friuli-Venezia Giulia

1 145

Lazio

16 226

Liguria

2 049

Lombardia

13 370

Marche

2 784

Molise

628

Piemonte

4 810

 

Puglia

9 138

Sardinia

4 119

Sicily

14 504

Tuscany

2 227

Trentino-Alto Adige

1 984

Umbria

1 225

Valle d’Aosta

299

Veneto

4 942

Total

109 758

 

The total amount of cooperatives has been significantly increasing for the past 15 years. In 2013, for instance, Italy had 106,970 cooperatives. Also the cooperatives with a positive impact on employment increased (worker–producer cooperatives, farmers’ cooperatives, transportation cooperatives, fishing cooperatives, 70 per cent of social cooperatives) 45 per cent in 2008, more than 65 per cent in 2015.

In addition, before the Committee, a Government representative referred to the written information and added that over the last five years Italy had faced a severe economic crisis, which had led to an increase in the unemployment rate up to 12.7 per cent in 2014. Young workers were the most affected by the crisis: in 2014 the unemployment rate of workers aged between 15 and 24 years was 42.7 per cent and the number of young people who were neither employed nor in education or training was 22.1 per cent. The Government further referred to the Fornero labour market reform which included the reform of the employment protection legislation, with the aim of reducing the segmentation in the labour market; the reform of the unemployment benefit system, whose coverage and coherence had been increased; the introduction of instruments for easing the transition between school and work; incentives for the employment of older workers and of women in areas with a high female unemployment rate or in sectors characterized by high gender gaps. Furthermore, the Fornero reform introduced a permanent system of monitoring, with the participation of the social partners and of all the institutions involved both in the implementation of the reform or in the collection and treatment of statistical data. The youth employment strategy provided for a package of interventions aimed at fostering the employment of young people, including an employment incentive, financial support for work experiences and incentives for self-employment and entrepreneurship; the youth guarantee programme represented a very important challenge and an opportunity to test a new approach to the provision of public employment services and active labour market policies, through the creation of a competitive and cooperative system between public employment services and private agencies, the development of a national “profiling methodology” in order to provide young people with more focused and tailored paths of placement, the introduction of standard costs at the national level and the results-oriented payment for labour market operators. The 2014 Jobs Act was the most ambitious of the three reforms giving the Government the power to reform many aspects of the labour market legislation, including the establishment of a national employment agency. In this respect, subsequent Acts had already been approved or would be adopted in the following weeks. A three-year contribution relief was established by Law No. 190 of 2014 for new open ended contracts, aimed at encouraging an employment intensive economic recovery with more stable jobs. Statistical data showed some improvement of the main employment indicators following the implementation of these reforms. The number of employed people increased by 0.7 per cent in April compared to March 2015. The employment rate reached 56.1 per cent while the unemployment rate fell to 12.4 per cent. During the first three months of 2015, the number of new employment contracts increased by 3.8 percentage points: the number of new open-ended contracts increased by 24.6 per cent with respect to the same period in 2014. With respect to youth employment, the latest figures showed an increase of 5.7 per cent in the number of employed people aged between 15 and 24 by March 2015. Their unemployment rate was currently 40.9 per cent, which was 2.4 percentage points lower than in April 2014. Concerning education and training policies, the Government representative indicated that, according to the National System of Certification of Skills, a national directory of qualifications was being implemented and that the Jobs Act reform focused on work-based learning, particularly through the reform of the apprenticeship contract. With regard to the data related to cooperatives, there had been an improvement in the number of cooperatives over the last 15 years, including cooperatives which had a positive impact on employment. Finally, the Government representative noted the importance given to the issue of monitoring, which would also be applied to the reform of active labour market policies. Great attention would be paid to the monitoring system and to the capacity of the public administration to learn from experience, through the continuous adjustment of measures and services.

The Employer members observed that the Committee of Experts had formulated since 1990, 16 observations on the implementation of the Convention. This was the first time that the Committee was able to discuss the case on the grounds of significant progress shown by the Government. Quoting Article 1 of the Convention, which required each member State to declare and pursue an active policy designed to promote full, productive and freely chosen employment, they recalled that the main problems regarding the Italian employment situation were related to regional and gender disparities, excessively high youth unemployment, as well as the high level of undeclared employment. These problems were rooted in structural causes and persisted irrespective of the prevailing economic situation, which was also reflected by the Committee of Expert’s comments over the past 25 years. The profound economic crisis of 2008, which had affected all European countries, posed particularly tough challenges to the Italian economy and the employment situation. Although the labour market institutions were not the cause of the crisis, their shortcomings and inefficiencies, including excessive bureaucracy, contributed to the aggravation of the crisis and hence hampered both employment generation and economic recovery. In addition, the inefficient labour court system, where legal disputes were decided only after several years, discouraged employers to offer open-ended contracts to workers. The same deficiencies were observed in public employment services which therefore were not able to fulfil their role in active labour market policy. Likewise, the vocational education and guidance system was not able to fully integrate young people in the labour market. In order to tackle these problems, the Government had undertaken comprehensive structural reforms of the institutions which were relevant to the employment and labour market, in order to make them more efficient and conducive to employment creation. The 2012 Forneo labour market reform, the 2013 Youth Plan and the 2014 Jobs Act followed exactly the comprehensive approach required. The 2014 Jobs Act, in particular, made the labour market regulations more employment-friendly, which led to the creation of a new form of open-ended employment contracts with better protection rights. This measure was accompanied by a reform of the work-based vocational education and apprenticeship system, which was crucial for increasing youth employment. The public employment system had also been reformed and measures aiming to reconcile work and family life had been introduced to promote the integration of women in the labour market. The Employer members stressed that structural reforms always needed time until positive effects became visible. Already, the first positive effects had been noted, such as the significant increase of employment, including youth employment. Also, the employment of women was growing faster than the employment of men. Most importantly, the number of open-ended employment contracts had increased significantly since the adoption of the Jobs Act. Turning to the provision of Article 3 of the Convention which provided for consultations on employment policies with the representatives of the persons affected by the measures and in particular representatives of employers and workers, they observed that the Government had been discussing the measures proposed with the social partners for a number of years. However, at a moment when the employment situation deteriorated severely, the Government had rightly assumed its responsibility and had proposed a draft legislation which was in line with the recommendations of the European Council within the framework of the European Semester. The social partners were consulted during the deliberations in Parliament and gave their views on the reform package which was subsequently adopted by Parliament. The implementation measures of the reform were under preparation and subject to broad consultations with the social partners. In this regard, the Employer members hoped that the opponents of the modernization of the labour market would give up their negative attitude and that both social partners would participate in a proactive manner in the consultations. In conclusion, the Employer members praised the Government’s comprehensive structural reforms, since they contributed to the goals of the Convention and reflected the spirit of the 2008 Oslo Declaration which called for decent work and job creation to be fostered through an enabling environment for enterprises and appropriate strategies to enhance competitiveness and sustainable development. The employment gaps regarding regions, gender and youth could require a long time to be resolved. However, they reiterated that the comprehensive approach was showing its first positive effects and the Government should hence continue on this path of reforms.

The Worker members recalled the objective of full, productive and freely chosen employment, based on consultations with social partners and the importance of other key documents on which consensus had been reached, such as: the Decent Work Agenda; the 2008 Declaration on Social Justice for a Fair Globalization; the Tripartite Consultation (International Labour Standards) Convention, 1976 (No. 144); the 2009 Global Jobs Pact; the 2010 ILC Resolution concerning the recurrent discussion on employment; and the 2008 Oslo Declaration. Beyond the existence of a framework, the Employment Policy Convention, 1964 (No. 122), required initiatives on the part of the Government. The Committee of Experts was empowered to assess whether the measures taken would affect employment in a way that was compatible with the objectives of the Convention. Recalling the conclusions adopted in 2013 during the previous examination of this case, as well as the ensuing comments by the Committee of Experts, the Worker members considered that the problem of the present case lay elsewhere, as most of the data had changed since the Italian Government had passed a series of new laws and decree laws in order to reduce unemployment. The Jobs Act, which had been adopted in 2014, without proper consultation of the social partners, in order to increase the employment rate, was the third reform of the labour market in three years, even though the impact of the previous reforms had not necessarily been evaluated. The provision of information was not the equivalent, however, of holding consultations within the meaning of the Convention, which required timely consultations, thus allowing for exchanges to take place, compromises to be reached and amendments to be discussed. Labour law was not there to serve the market, as underlined by the Declaration of Philadelphia. Yet, the latest reform had provided for complete liberalization regarding fixed-term contracts, as they could be extended to 36 months; had introduced the concept of downgrading, which allowed for workers to be assigned tasks at a lower grade than the one at which they had been hired; and had authorized the use of contracts for part-time employment with greater flexibility regarding working hours and casual work for all task types. In the case of apprenticeships, the reform had ended payment for training hours. Finally, it introduced “contracts with increasing protection”, which was a source of concern for the trade unions. In the absence of consultations, which would have clarified any doubts and would have allowed for adjustments to be made, the workers were faced with a fait accompli whereby labour law had been undermined. The Government was considering work, wages and social protection in the broad sense, as nothing more than another factor in its budgetary orthodoxy, thereby going against the Declaration of Philadelphia on which the Convention was based. The latest data submitted were not surprising, as many jobs in the country were seasonal, which was reflected in the extensive use of fixed-term contracts. A correlation should be made between this data and the fact that enterprises received subsidies for three years. Questions should be raised regarding the sustainability of that temporary assistance with regard to employment. There was a high risk of damaging the cohesion of a country that was already experiencing economic and social imbalances among its different regions and a high unemployment rate for women. Although the Government had high hopes for the Youth Guarantee of the European Commission, the scheme had limited resources and would not be enough to resolve the problem faced by all young people, who also needed to be guaranteed a quality transition between school and work. In conclusion, the Worker members said that they shared the concerns of Italian workers, who feared a resurgence in precarious employment and growing poverty even within the world of work. The way out of the crisis lay in the creation of more quality jobs and in greater efforts to train workers.

The Employer member of Italy indicated that the environment was different from that of 1964 when the Convention had been adopted. Globalized economies, technological and demographic change and different ways of production as well as new requirements for workers and enterprises had transformed the labour market. However, the objectives of the Convention remained valid and needed to be pursued, as active labour market policies to promote growth, employment, social development and cohesion were more necessary than ever. Governments and social partners had to be committed to adopt reforms to adapt the labour market to the situation. In this regard, it was encouraging to examine countries that were now positively addressing the challenge, in particular Italy, where structural reforms of the labour market had lagged behind for years. The alarming figures concerning employment, in particular women and youth employment, could be explained by the delay in addressing the structural weaknesses of the economy and of the labour market which had been exacerbated by the crisis. Now some improvement in latest figures must be highlighted, particularly with regard to the creation of permanent employment. In any case, it had to be recalled that Italy remained behind other EU countries in the use of fixed-term contracts, and was the country where temporary agency work benefited from full equal treatment in comparison with permanent employment. The Jobs Act implemented by the Government contained a package of reforms that simplified and modernized the employment relationship and reinforced active labour market policies, overcoming rigidities that discouraged job creation. A regulatory framework that fostered employment together with policies that encouraged investment could contribute to recovery. Social partners had an active role to play in this strategy and they had the opportunity to channel their views through the existing institutions, including the Parliament. They could also contribute to the modernization of the labour market through collective bargaining which, even during the crisis, had contributed to finding balanced solutions to protect employment and support competitiveness. The results already achieved should encourage the Government to adopt further reforms within the framework of the Convention.

The Worker member of Italy said that the Jobs Act, which was designed to help increase the rate of employment, was the third labour market reform in as many years whose impact had not been assessed and whose global vision was inadequate. The increase in precarious work stemmed from the 2003 labour market reform, and from the process, which since 1993 had been proclaimed as “the modernization of the labour market”, and job creation. Yet the Jobs Act was geared more towards job flexibility than job security; it looked upon open-ended contracts as providing “increasing protection”, but in practice it replaced the current system under which workers were protected against illegal dismissal. In future, even in the case of unjustified dismissal, workers would only be entitled to financial compensation, but not to reinstatement. The amount of compensation for dismissal increased only with the number of years of service. As a result, the balanced system of professional relations that had existed before was being replaced by the monetization of labour and of its value, in breach of Article 24 of the European Social Charter and of the Termination of Employment Convention, 1982 (No. 158), which stated that all terminations must be justified. In the past, reinstatement in a job following an illegal dismissal was a policy choice that protected workers’ dignity and enabled them to lay claim to other fundamental rights. The concern was that the new measures might put undue pressure on workers and lead to employment blackmail. Recruitment that took place in 2015 would exempt employers from social security contributions for up to 36 months, after which the maximum would be €8,060 a year, regardless of whether the enterprise had invested in training, innovation or research. The reform had been designed to benefit enterprises. The long-term sustainability of that kind of recruitment was doubtful, because it did not result from structural change, and there was therefore a risk that precarious work would become institutionalized. According to the OECD, Italy’s 49 per cent youth unemployment rate was the highest in Europe after that of Greece, and there was still a long way to go before Italy might find a sustainable answer to the crisis. The increased productivity that the reform aimed to achieve was largely dependent on employers being able to dismiss workers more easily. That was all to the employers’ advantage, because they could then hire new workers more cheaply and benefit from tax and social security concessions. Meanwhile, nothing was being done to retrain workers by means of sustainable measures for improving their employability. None of the teaching and training measures that should have been introduced since 2013 had been implemented, and the permanent territorial centres in provincial adult education institutions had never been set up. The system was under-financed and the Government had done little to implement the measures. A job without rights was no job at all. Yet that was exactly what was happening; inevitably, then, the world of work would go into economic and social decline. In southern Italy some 800,000 jobs had been lost between 2004 and 2014 and more and more workers (700,000 between 2011 and 2013) were migrating to northern Italy. Surely Italy needed, instead, an ambitious public and private investment programme that might give the country a real chance of economic growth based on quality jobs. The very first words of the country’s Constitution stated that Italy was a democratic republic founded on work, which was the foundation of life and the principle means of social inclusion – a concept that must be translated into respect for the dignity of all.

The Government member of France, also speaking on behalf of the Government members of Croatia, Cyprus, Germany, Greece, Luxembourg, Portugal, Romania, Slovenia and Spain, said that, like Italy, the Governments of all the aforementioned countries had embarked on a coordinated approach at EU level designed to combat unemployment in a difficult context for public finances, with a view to reducing an unprecedented unemployment rate, ensure strong and lasting growth and strengthen social cohesion. The Europe 2020 strategy for smart, sustainable and inclusive growth, which defined the macroeconomic direction of the EU, was based on the same objectives and aimed for a 75 per cent employment rate for the 20–64 age group and the possibility for every person to seize opportunities, develop skills in order to be able to find a job, be educated and trained, and enjoy social protection corresponding to the various risks encountered throughout life. Poverty at work remained an issue to be faced by the member States, and developing access to employment remained a significant challenge, particularly for women and vulnerable groups. The search for the right balance between macroeconomic objectives, on the one hand, and those of inclusive growth, on the other, and also the creation of an environment conducive to the development of investment merited closer attention, as recommended by the European Commission’s recent investment programme. Better use of human capital through more inclusive labour markets should contribute to growth and social progress. In view of their representativeness within social Europe, trade union and occupational organizations at the European level had a particular role to play, especially in the social and employment spheres. Italy was pursuing active policies to achieve full, productive and freely chosen employment and the Government should be trusted to continue its efforts in that direction, in accordance with the values and principles of the ILO. Furthermore, without social dialogue there could be no lasting solution to the problems of the labour market in Europe. The ILO had to play its full part in integrating the social dimensions of international labour standards in the multilateral system through increased collaboration with other international bodies, particularly those in the economic and financial spheres.

The Worker member of Canada indicated that in the framework of the proposed trade agreement between Canada and the EU, under the guise of promoting full employment, both countries were promoting a labour market flexibility agenda characterized by deregulation or reregulation to lower or keep wages low, stimulating private investment and promoting export demand. Even if it was sometimes said that approaches like the Jobs Act had resulted in reducing unemployment, a closer look at the statistics revealed a picture that was characterized by more short-term work, precarious work, more inequality, less social stability, higher job insecurity and lower social protection – a scenario that went contrary to the principles of the ILO Decent Work Agenda. In both countries, there was no consultation or meaningful involvement of the social partners with regard to key employment plans. While Italy was breaking with a long tradition of consulting social partners about employment, Canada had now launched frontal attacks to freedom of association and collective bargaining. It appeared that the purpose of the Convention had been sidelined without regard for a meaningful employment policy and without dialogue with the social partners.

The Employer member of Spain stated that, like his country, Italy had suffered the economic repercussions of the 2008 crisis, resulting in a slowdown in economic growth and the loss of employment, along with an increase in structural inequalities that had existed before the crisis. Within the framework of the Stability and Growth Pact, the Italian Government had taken significant steps to overcome those difficulties. Although labour reform alone could not solve employment problems, together with other reforms it represented a key piece in building a vigorous recovery in the job market during the next ascending economic cycle. The Spanish employers supported the reform and advocated the adoption of additional measures to remove the unnecessary rigidity from the job market and create a favourable environment for enterprises to create high-quality jobs. The Jobs Act, among other measures taken by the Government, reflected its firm commitment to reactivating employment creation.

The Worker member of France recalled the particularly worrying rate of 42 per cent youth unemployment in Italy, the particularly dramatic employment situation in the south of the country, the fact that most young people were liable to end up in precarious jobs in new forms of semi-contractual employment, and the lack of career prospects even for those with qualifications; and that was despite the measures taken by the Government with respect to apprenticeships, which the social partners and the Government saw as the best way of getting workers back into the labour market. However, the new labour market reform, which had introduced “assisted” contracts that offered enterprises tax concessions for three years, meant that employers no longer hired workers on apprenticeship contracts and thereby denied young people access to training programmes. Moreover, the number of young people benefiting from such contracts was already declining, and nobody knew what would happen after the three-year exemption period. Only 20 per cent of jobseekers had found their way back into the world of work. The youth unemployment problem was not just a question of resources, since the EU had given Italy substantial financial assistance; it was more a matter of priorities in the distribution of available resources. The Workers were therefore calling for a genuinely active job-creation policy which favoured enterprises that invested in training, and which strengthened employment services. It was also necessary to familiarize young people with the world of work and enterprises through the promotion of civilian service and training.

The Employer member of France indicated that, owing to the severe economic recession, Italy had had to introduce major labour market reforms, such as the Jobs Act, in order to address the high rate of unemployment. In particular, the country had adopted the Fornero Reform establishing a range of measures to protect the working conditions for women and young people, boosted apprenticeships and vocational training and implemented the youth plan, which had been converted into a law in accordance with the 2020 Strategy, and measures to address the mismatch between labour supply and demand which aimed, for example, to improve the employability of older unemployed persons and their reintegration into the labour market – with specific measures for women. In 2014, the employment services had been reformed and the National Employment Agency had been established. Emphasis had also been placed on training with the reorganization of adult training centres, which were now part of the national education system, and on improving the quality of higher and technical education so as to adapt it to the changing labour market. Also in 2014 the Ministry of Economic Development had adopted measures to promote employment through cooperatives and the development of small and medium-sized cooperatives. In conclusion, she said that Italy should be encouraged to continue the efforts it had already undertaken, in accordance with the Convention, to reduce unemployment with a view to full employment.

The Worker member of Brazil recalled the importance of the Convention, the main objective of which was to give expression to the principles set forth in the Declaration of Philadelphia relating to full employment and social justice. The Convention promoted the creation of employment through the adoption of growth and economic development policies and obliged States to implement policies that tackled the problem of unemployment and underemployment. The application of the Convention in Italy had been hampered by the restrictive economic and social policies promoted by the European Commission. In that context, the Jobs Act had been adopted at the end of 2014 creating new forms of employment contracts and making it easier to dismiss workers. The measures recommended by the European Commission, known as specific recommendations for each country, showed that the ills of low productivity and competitiveness of Italian enterprises were regarded as stemming from excessive social protection of the employment relationship. However, reality showed that enterprises were not hiring more workers just because it was easier to dismiss them but also because there was an economic policy geared to economic growth and with it the expansion of business. Even though initial data showed a slight reduction in unemployment, it was important to be aware of the effects that flexibility policies had had in Latin America where they had been extensively applied. In the long term, making dismissals more flexible, creating incentives for part-time contracts and making use of outsourcing resulted in the creation of precarious jobs or underemployment, in complete contradiction with the Convention. It was certain that workers’ lives could not be improved in the long term if no macroeconomic policies were adopted aimed at economic growth based on investment technological innovation wage increase or state investment.

The Employer member of Turkey indicated that the comments of the Committee of Experts gave a misleading picture of the situation in Italy and that the evaluation of the situation should not be based solely on quantitative analysis. The profound economic crisis had greatly damaged the Italian economy and labour market, and the response of Italy had been bold and responsive. The structural reforms in areas such as vocational training, apprenticeship, public employment services, employment contracts and flexibility had been undertaken in a consistent way. These measures showed a clear commitment to overcome the crisis through policies for employment creation. Positive effects could already partially be seen, but more time was needed to achieve success. The Turkish employers welcomed the progress made by the Italian Government and its commitment to comply with the Convention.

The Worker member of Belgium referred to the impact of the crisis and the austerity measures on women’s jobs and lives in Italy. Young women, even those who were highly qualified, were limited to precarious and unstable work and women over 40 years had difficulty situating themselves satisfactorily on the labour market. According to the 2014 European Commission annual report on equal opportunities, if Italy did not radically change its employment policy, it would only achieve its objective of a female employment rate of 75 per cent in 30 years’ time, equality of treatment between men and women would only become a reality in 70 years’ time, and parity representation in national Parliament would not be possible before 20 years. The rate of male employment was 22 per cent higher than the employment rate for women, while the average for this gap in the EU was 12 per cent. Women left the employment market because certain types of contracts did not offer them adequate maternity protection. In addition, the practice of “white resignations” was common, under the terms of which, at the time of her recruitment, the woman worker signed a resignation letter which the employer would use if the worker was pregnant or on maternity leave.

The Employer member of Belgium highlighted that, in the financial and economic crisis that had swept Europe since 2008, there was one common objective: restoring economic growth so as to create sustainable employment; and that necessarily entailed the structural reform of the labour market. The reforms, which had sometimes been trying, were at last beginning to bear fruit. Governments had tackled the countries’ structural shortcomings with determination and had regularly, if not constantly, consulted the social partners before adopting and implementing new measures. There were of course differences of opinion among the social partners on the proper steps to take, especially when they were unpopular; and in the absence of consensus the Government was obliged to take the final decision. The requirement in Article 3 of the Convention that the Government consult the social partners on its employment policies was not intended to undermine the sovereignty of States, and governments had to pursue whatever structural reforms were necessary to protect the competitiveness of enterprises and to sustain employment and, therefore, the social security system. He concluded by asserting that government practice in Italy was in keeping with the Convention.

The Worker member of Poland, observing that the Italian labour law reform had resulted in a reduction of workers’ rights, focused on the situation of the most disadvantaged children. Child labour could become a reality within the EU as a result of the austerity measures which had a great impact on vulnerable groups through the reduction of family incomes and cuts in state expenditures dedicated to health care, education and social services. Italy had one of the highest rates of school drop-outs in Europe. A 2013 survey from Save the Children pointed out that, at least one out of 20 children was exploited. In October 2011, the UN Committee on the Rights of the Child urged Italy to develop effective mechanisms capable of ensuring children’s education, health and social assistance, and called for a comprehensive analysis on resource allocation for this purpose. In this context, the Government should have considered the implementation of free universal education as a priority for the creation of new quality jobs and public investments for development and growth of the country. Those considerations should be central in the international community and EU policy debate in order to finally break the chain of decent work deficits, poverty and inequality.

The Worker member of Germany observed with concern that the recent labour market reforms of the Government were socially imbalanced, and that they had fatal consequences for the economy and society. While the Government faced challenges to overcome the economic crisis that had resulted in the loss of thousands of jobs, there was real doubt as to whether the Jobs Act would achieve economic growth and development, increase living standards and reduce the unemployment rate. The Jobs Act had introduced a new contract with additional safeguards replacing the previous open-ended standard employment contracts. Consequently, judicial procedures against employment termination for economic reasons would now become more difficult. Where employment contracts had recently been concluded or where enterprises employed more than 15 employees, there was no right of reinstatement, except where the courts considered the dismissal to be discriminatory. Furthermore, the amount of compensation for unfair dismissal had been significantly reduced, including in the event of collective dismissals. Section 18 of the Italian workers’ statute which previously provided for the protection of workers organized in trade unions against unfair dismissal had been undermined, which was tantamount to interference in freedom of association. The introduction of the new contract with additional safeguards meant that enterprises could simply realize unfair or collective dismissals by paying a meagre compensation. There were concerns that other regulations under the Jobs Act would provide for further precarization and the widening of the gulf between different categories of workers. While it had appeared from some of the statements made during the discussions that the regulations on the protection against dismissal were the main cause for the labour market crisis in Italy, there was very little evidence to support this belief. In fact, countries with the highest protection against unfair dismissal were more economically successful and had higher employment rates than others. He concluded by stating that the Government should have consulted workers in the early stages of the reform process, and that it should also take into account social objectives in its efforts to promote employment.

The Worker member of Japan, referring to the Director-General’s Report to the Conference, indicated that work should contribute to overcoming social problems through connecting people and making a link between workplaces and society. However, such linkage was becoming weaker and weaker because of the increase in precarious work and the deterioration of the quality of employment. Although the crisis represented a chance to recognize the importance of stronger coherence between growth strategies and employment policies, few lessons had been learnt from it as the policies being implemented all over the world had demonstrated, including in Italy. The Jobs Act instilled more flexibility in the labour market, removing constraints faced by employers in hiring and firing workers through a redefinition of company sizes, the establishment of new rules on fixed-term contracts and a revision of section 18 of the Italian workers’ statute that prevented companies from downsizing during a crisis. Such measures would be surely creating more jobs but most of them would be precarious leading to a vicious cycle of, among others, insecure and lower waged jobs; decrease of savings; even lower consumption; no investment and stagnant growth. In order to stop such a deflation spiral, investments should be made to create decent jobs and employment policies should aim at the strengthening of workers’ protection and the raising of wages. Finally, despite the provision in Article 3 of the Convention, in many countries, consultation with enterprises was often given priority over that with trade unions. Without proper consultation of workers’ representatives, measures would not be effective or beneficial to those at whom they were targeted

The Worker member of Argentina stated that Italy’s labour reform had ushered in a process that had been described as a “labour counter-reform” because of its regressive nature in terms of protection for a considerable number of the rights and guarantees that Italian workers had acquired during the 1950s. The “counter-reform” was the fruit of the employers’ and Government’s mistaken belief that restricting rights and increasing the power of employers would raise employment levels. However, reality showed a different picture: unemployment in Italy had reached extremely high levels, especially in the south of the country, and affected women most acutely and young people to an alarming degree. In addition to seriously affecting the stability of labour relations by abolishing reinstatement following “unlawful economic dismissal”, the reform had undermined the worker protection system through the revision of section 2103 of the Civil Code, which made it impossible for an employer to assign a worker to lower-level functions than that at which the worker had originally joined the enterprise. Since the reform, the opportunities for potential abuse by employers had increased dramatically, as not only could they now assign workers to inferior duties, but there were also restrictions on the judicial power to redress the balance in cases where it was alleged that the assignment of hierarchically inferior tasks was excessive in view of the enterprise’s actual economic position. Moreover, all reference to the employer’s duty to assign equivalent functions to subordinates had been removed, with the result that determining which services a worker performed was now left to the completely arbitrary choice of the employer, regardless of the worker’s particular skills and abilities. The consequences of this for the dignity of workers were incompatible with the Convention and the 1944 Declaration of Philadelphia.

An observer representing Public Services International (PSI) stated that the reform of the public employment system via the establishment of the National Employment Agency had resulted in the abolishment of more than 550 centres for employment. This had led to employment uncertainty for more than 8,000 workers and to a vacuum in employment services. A flood of cuts in public spending was hitting public services severely. She recalled that spending cuts involved the abolition of the State Forestry Corps, whose function would be assigned to other police corps, which were already dramatically understaffed and underfunded. The health sector represented 14 per cent of total public spending; in 2015, 2,069 hospitals and 8,718 first-aid services were closed along with several centres for emergency services. Such spending cuts would lead to fewer jobs, more overtime and less safety for patients. Furthermore, 3 million public service workers had had their last wage increase in 2008. Since then, wages had been frozen, collective bargaining suspended until 2018 and no mechanism to compensate the increase in the cost of living had been foreseen. The Constitutional Court was expected to decide whether the practice of freezing wages during a time frame of ten years was compatible with the Constitution and a verdict of incompatibility would lead to a payment to all public employees of €35 billion, corresponding to the past seven years. Finally, recalling that employers were on the one hand supporting flexibility and flexicurity and, on the other, questioning the role of the Committee of Experts and ignoring trade union arguments, she warned that workers were tired of being exploited and that, in a world embroiled in social and political conflicts, such a discontent could lead to very dangerous consequences.

The Government representative addressed some of the questions raised during the discussions. In relation to social dialogue, he reiterated that the social partners had been permanently involved: they had been heard by Parliament in relation to the various aspects of the Jobs Act; they had been involved in the relevant contractual arrangements which had been left to collective bargaining; they had been consulted in relation to labour market policies through their involvement in the governance of institutions, including the new national agency for active labour market policies and the Italian National Security Institute. Moreover, the social partners had been involved in the management of labour market policies, through the management of the newly introduced solidarity funds in the event of the reduction or suspension of labour activity. Finally, the social partners had also been in charge of international bilateral funds for the training of employees. However, it was the Government that had to bear the responsibility for the functioning of the labour market and the economic recovery, and therefore had to adopt the reforms that it deemed necessary. He then addressed the issues concerning the Youth Guarantee. This strategic plan was not an extraordinary programme that had been intended for just a couple of years, but was indeed intended as a pilot project to introduce a new approach for public employment policies and active labour market policies. This programme had been co-financed by the European Social Fund, and it was expected that a more permanent and stable source of financing would be provided by the EU. Referring to the need for community service in order to maintain the competencies of workers that was raised during the discussion, he indicated that traineeships, training and employment were part of the strategic plans relating to the Youth Guarantee. He emphasized that the public employment services had not been abolished, even though in view of the administrative reform, employment services were no longer represented at the provincial level. In fact, the support of the regions was crucial to address youth unemployment, in the framework of the Youth Guarantee programme. In relation to the issue of fixed versus open-ended contracts, he indicated that the success of the Government strategy lay in the numbers. There had been an increase of about 24 per cent in the number of new open-ended contracts in the first three months of 2015 in relation to previous years. It was better to provide for economic incentives than for strict legislation that was difficult to implement. The Government was committed to fostering open-ended contracts with a long-term perspective. In relation to the protection of workers, he recalled some of the numbers from the OECD employment protection legislation indicators. A calculation in relation to employment protection legislation had been made after the adoption of the Fornero policy reform. In 2013, Italy had an index of 2.79 for the protection of permanent workers against collective dismissal, which was higher than the OECD average index, which was 2.29. Concerning the regulation on temporary employment, Italy had an index of 2.71, whereas the OECD provided for an average index of 2.08. Concerning female employment, while there had been a decrease in the total employment during the crisis, when breaking down this number, it had become clear that the female employment rate had risen.

The Employer members indicated that it was important to recall that employment could not be created by Decree, but that it depended on economic conditions. Therefore, the Government was to be commended on addressing the regulatory barriers for entry into employment, where these barriers had been found to be excessive or to have long-lasting negative effects on employment. They were surprised to hear the criticism concerning the new employment contract introduced under the Jobs Act that removed the possibility for reinstatement in case of dismissal, but enhanced compensation rights. In fact, most EU Member States provided for similar regulatory frameworks, and it could not be seriously claimed that workers in all these countries were exploited and pushed into precariousness and badly paid jobs. The Government had demonstrated significant progress in complying with the objectives of the Convention by adopting and currently progressively implementing a comprehensive package of measures addressing structural weaknesses concerning employment. The Government should continue its comprehensive approach to structural reform in order to improve the employment situation and foster job-rich inclusive growth. Given that the Jobs Act, which was the key component of the reform package had only recently been adopted and considering that structural reforms always took time to reveal their results in terms of the employment situation, they considered that the Committee should continue to evaluate the implementation of that Act based on updated labour market data. Therefore, the Government should provide a detailed report to the Committee of Experts on the application of the Convention in 2015.

The Worker members expressed their satisfaction that the Employer members had emphasized the relevance of the Convention in the current crisis, the importance of the Committee examining its implementation and the need to assess employment policies from the qualitative as well as the quantitative standpoint. As to the soundness and necessity of the structural reforms, obliging the workers to make all the efforts and sacrifices amounted to making them carry the cost of a crisis for which they were not to blame. It was also surprising that some speakers were all for leaving the problem to the State and abdicating their own role as social partners in the context of social dialogue. Given the risk of a return to precarious employment and increasing poverty, the best solution to the crisis was to create more quality jobs and improve the level of training. However, since the measures taken thus far by the Government were likely to offer only short-term solutions, it was essential that, for the Committee of Experts’ next session, the Government continued to provide relevant data on: the outcome of the reforms undertaken to combat high unemployment, long-term unemployment and youth unemployment, especially through the creation of sustainable quality jobs; the simplification of types of contract and the number of permanent contracts benefiting from public funding; the development in women’s employment and the fight against the disparities in employment from one region to another; the review of policies and measures to attain the objectives of full, productive and freely chosen employment; the promotion of productive employment through cooperatives. The Government should also make every effort to revive and strengthen social dialogue.

Conclusions

The Committee took note of the detailed written and oral information provided by the Government representative and the discussion that followed in relation to the issues raised by the Committee of Experts related to employment policy measures to alleviate the impact of the crisis adopted in 2012–13 and which included: the monitoring of the measures implemented with the participation of the social partners; the high unemployment rate which reached 12.6 per cent in May 2014 and affected young people by a greater proportion; the continued differences in employment rates between northern and southern regions of the country, as well as the measures taken to promote productive employment through cooperatives.

The Committee noted the information provided by the Government representative indicating that the unemployment rate had been reduced to 12.4 per cent in April 2015 and the rate of unemployed young people aged 15–24 who were actively seeking employment had fallen to 40.9 per cent. The Committee also noted the information provided on the 2015 Jobs Act which included the establishment of a National Employment Agency, the revision of unemployment benefits as well as new provisions on the dismissal and reinstatement of workers, leading to an increase in the number of new open-ended contracts by 24.6 per cent with respect to the same period in 2014. More than 600,000 young people had joined the Youth Guarantee Programme launched in May 2014. The Government representative also reported on an Agreement reached between regions in January 2015 envisaging a National Framework of Regional Qualification to coordinate nationwide recognition to over 2,600 regional vocational qualifications.

Taking into account the discussion, the Committee requested that the Government:

■  ensure, in consultation with the social partners, a comprehensive approach to employment policies in order to improve the employment situation and foster job-rich inclusive growth, in line with the Convention;

■  ensure tripartite consultation on the development and implementation of employment policies, based on regularly updated labour market data, including on the number, kind, duration of employment, and youth and gender issues and regional disparities;

■  examine the measures to promote productive and sustainable employment through cooperatives; and

■  provide a detailed report to the Committee of Experts in 2015 on the issues raised in these conclusions.

 

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A Government representative gave a presentation on the characteristics of the Italian labour market and examined labour market developments and government policies related to the labour market.

Firstly, a significant increase in the employment rate could be observed, particularly in the northern part of the country, but also to a lesser extent in the south; an increase in the rate of employment of women could also be noted, although it was still insufficient and below that of men. The unemployment rate had fallen to 6.8 per cent, contrary to the trend observed in other European countries. The unemployment rate of women was 8.8 per cent and measures had to be adopted to bring it into line with that of men, which stood at 5.6 per cent. In general, unemployment had been steadily decreasing in the whole of the country, despite the fact that this decrease was sharper in the north than in the south. Long-term unemployment was still unacceptably high, affecting 2.5 and 4.4 per cent of men and women, respectively, particularly in the south of the country. With regard to the employment rate, she considered that it still was not sufficiently high and noted a decrease in the employment rate of women in the south, which might be linked to the phenomenon of undeclared work, which the Government had been striving by all possible means to combat. The level of employment of young people was also insufficient and the Government believed that this problem had to be addressed by means of an active policy to combat precarity and unemployment of young people. She added that Italy had an educational system characterized by a high high-school drop out rate which, however, had been declining since 2000. The number of women and men with degrees was on the rise and two-thirds of adolescents succeeded in making the transition from school to university. The country was also facing a number of new problems related with the liberalization of the labour market, and there were no fewer than 2 million temporary jobs, essentially located in the southern part of the country, which represented 9.2 per cent of all jobs. In this respect, it was important to encourage permanent contracts. Furthermore, part-time work, which had not been highly prevalent in the past, was increasing sharply in the country as a whole, particularly for women. As for precarious or atypical contracts for which there was no guarantee that they would be made permanent, such as "project contracts", of which there were 400,000.

She recalled that the lines of action that had been decided on by the Government to address these problems consisted in combating precarity, adopting measures to encourage permanent employment and encourage undeclared workers to become legal, to improve social protection for precariously employed workers, to support the action of the labour inspectorate against undeclared work while at the same time encouraging the enterprises concerned to legalize their activities and, finally, to formulate a bill on occupational health and safety. In this respect, the Government was, in collaboration with the social partners, organizing a series of round tables to formulate a new social safety net, measures addressing occupational change, measures intended to reduce undeclared work and precarity, as well as to discuss the issue of retirement. In conclusion, she emphasized the importance of social dialogue and consultation between the social partners in the formulation and development of national policies, and stated that the action of the new Government in this area would be directed at improving social cohesion.

The Employer members recalled that this case went back some 20 years and the Government had been asked to appear before the Committee on at least half a dozen occasions. The Committee of Experts acknowledged that the Government had provided a comprehensive report and this level of cooperation should also find satisfaction in the Conference Committee. This case was atypical in that it did not concern an assessment of whether a legislative matter or factual development was compatible with the terms of a ratified Convention, but rather broader and less precise questions. The fundamental issue was whether the employment and labour market policies of the Government of Italy were compatible with the treaty obligation to take active steps to promote employment, reduce social disadvantage through employment and to do so in consultation with the social partners. While imprecise, these issues were no less important than a case involving more typical legal analysis. The Conference Committee had noted this point in previous comments about Italy and in 1998 had borne in mind "the particular difficulty of assessing the application of a Convention which requires the formulation and implementation of policy".

The most recent observations by the Committee of Experts concerned four subject matters, namely: the macroeconomic position as it affected the labour market; the measures to promote labour market flexibility; the measures relating to human resources, education and training; and the participation by the social partners in this work. These observations and requests by the Committee of Experts appeared well founded and there was no reason to demur from them.

On the issue of unemployment, the Committee of Experts drew attention, in line with its previous observations, to the unequal impacts of the scourge of unemployment in the different regions of the country and called for "territorial cohesion in order to fill the gap between the various regions of the country". As a general proposition this request was not unreasonable, but the Committee of Experts had provided little in the way of real guidance. This was not surprising as the solutions to the application of this Convention were policy, rather than legal matters, the latter being the province of the Committee of Experts, but not the former.

Although they considered that the most desirable policy settings for the cure of long-term unemployment depended on national circumstances, and hence international consideration of these issues was by definition limited, the Employer members recalled the views they had expressed on this issue in numerous policy debates occurring on labour market reform in the ILO, both at the current session of the Conference and in the Governing Body or Regional Meetings. These views included the belief that there should be a holistic (rather than piecemeal) approach to address a range of inter-related measures; that there should be structural reform rather than one-off measures; and that long-term problems needed long-term planning and perseverance. As employers, they also believed that the "legislation" of the ILO itself needed to be subject to regular review to ensure that it did not act as a disincentive to meaningful employment. The problems were not unique to Italy and many other countries were grappling with similar issues to a greater or lesser degree. No country could be satisfied that it had done enough in this area, and the reform effort around the world was a continuum. The task in this Committee was to check that the reform continued in the right direction and that there was learning from other countries' experiences. Structural reforms of one type or another were also advocated by the OECD, the World Bank and the IMF. Overall, it was clear that the Government was sensitive to the task. Whether it adopted the right mix of solutions would be seen in the outcomes, and in the further steps it was asked to take by the Committee of Experts.

The Worker members pointed out that Convention No. 122 was considered as a priority instrument as it guided and oriented the work of ILO member States in the area of socio-economic policy. The right to work was recognized in this Convention as an individual right which should be guaranteed though voluntary action on behalf of governments, in cooperation with the social partners, aimed at the promotion of full employment and the fight against unemployment and insecurity.

The proclamation by the Declaration of Philadelphia of the right of every person to work and to the free choice of work in equitable and satisfactory conditions and to protection against unemployment remained fully relevant today through the notion of decent work. In order to achieve this, it was necessary for political leaders and the social partners to recognize the priority of full employment and to refuse a policy consisting of leaving the labour market to be governed solely by free market forces.

The Convention provided to the ILO member States, through the respect of the essential principles it set out, a framework for the development of their employment policies according to their own methods and on the basis of national conditions in order to significantly reduce unemployment. As underlined by the report of the Committee of Experts, the unemployment rate remained high and there was a slowdown of employment growth and a serious deficit in human capital. Regional disparities were important, especially between the North and the South of the country. The difficult integration of certain target groups, especially young persons and the long-term unemployed was also examined. Nevertheless, the main question was which policies were developed by the Italian Government to increase employment and promote an improved distribution of work with fewer disparities and inequalities, as well as the question of the conformity of these policies with the provisions of the Convention. This demonstrated the need to involve the social partners fully in the elaboration and implementation of employment policies.

The Committee of Experts concentrated its observations mainly on the criticism made by the Italian trade unions with regard to the inequitable tax cuts made by the previous Government, the flexibilization of the labour market, the legislative texts of 2003 on labour market reform and the low participation or perfunctory consultation of the social partners in the elaboration and evaluation of policies. Its report was limited to requesting the Italian authorities to provide additional information in the next report. In fact, the previous Government's priority was to render the labour market more flexible and to promote the individualization of labour contracts. The legislation adopted in 2003 had resulted in a serious problem of precarity in the labour market, especially through the introduction of new forms of employment, new types of flexible contracts and the reduction of security of employment and of the protection of workers against abuse. The new spectre of flexicurity haunted Europe and the international institutions. Instead of serving to guarantee more security to workers with precarious contracts, this concept had been emptied of its positive content and served as an argument for destroying protection against dismissal, making regular contracts more flexible and putting an end to the primacy of permanent contracts. Moreover, the European Commission was announcing that a communication would be issued on this subject at the end of June 2007 pursuant to the Green Paper on modernising labour law published at the end of 2006. The Government seemed today to wish to change course and adopt a different employment policy, another approach to the question of flexicurity and different relations with the social partners. The Committee should encourage this new policy direction.

The Worker member of Italy noted the Government representative's statement and recognized that the issues being discussed were to a large extent the legacy of the previous Government. The latter had done all it could to liberalize the labour market, raise the retirement age and undermine the very basis of tripartism and social dialogue.

The attitude of the new Government had therefore to be welcomed, as well as the reactivation of tripartite negotiation, particularly with regard to the new labour legislation. The basis for genuine dialogue, however, consisted in clear positions followed by appropriate action. A clear position by the Government on matters of social and labour legislation was therefore desirable because, despite certain actions carried out in the 2007 Budgetary Act, it still did not have a coherent policy to address the problems in the field as a whole.

Under the pretext of modernizing the labour market, Act No. 30/2003 had caused a serious situation of precarity in employment relations. The Government today wished to eliminate the worst forms of labour contracts established by the above Act; however, the objective should rather be to return to the situation in which permanent contracts were the rule. The statistics indicated a serious deterioration in the employment situation of the country. In 2005, while the working population had shown a slight increase in terms of full-time equivalent jobs, employment had decreased by 0.4 per cent compared to the previous year, for the first time since 1995. Fixed-term contracts were the main means for young people to enter the labour market, but it was increasingly rare for these to turn into permanent contracts; the situation was even worse for young workers. Furthermore, the introduction of "project contracts" in 2003 had only changed the name of an atypical form of work, thereby concealing a real employment relationship. According to official statistics, only one out of 25 employment relationships of this type eventually evolved into a permanent contract, whereas in 30 per cent of cases the workers concerned ended up being unemployed.

Labour market distortions were becoming increasingly pronounced. The south of the country was experiencing an alarming phenomenon of the reduction in the employment rate. This was because an increasingly large number of people were no longer actively seeking regular work and were swelling the ranks of irregular and undeclared workers. Despite a number of government actions, the illegal economy represented at least 18 per cent of the gross domestic product. The problem of long-term unemployment was especially prevalent among young workers, as well as older workers.

The situation in general was a far cry from the Convention's objective of promoting growth and development through a higher standard of living and overcoming unemployment and underemployment, and the objective of an effective policy intended to promote full, productive and freely chosen employment. The liberalization of the labour market had been the only objective of the previous Government to the detriment of and neglecting industrial, research and regional development policies, which were necessary to ensure competitivity in the modern sectors, rather than seeking to compete with emerging economies. In this respect, political measures were required, as well as the allocation of public resources to education and industrial research.

The Italian trade union confederations therefore suggested the following priorities for national tripartite negotiation: measures to fight precarity at work beyond those adopted under the Budgetary Act of 2007; the formulation of an action plan to limit, by legislative means, the use of fixed-term contracts, and to envisage the abolition of the many forms of atypical working relations established by the Act of 2003 so as to return to a situation in which permanent employment prevailed. It would also be advisable to guarantee unemployment benefits for all types of working relationships, regardless of the economic sector or the size of the enterprise, to repeal the extension of the retirement age and to put in place a system to encourage enterprises to hold on to older workers with options of flexibility when approaching retirement. Adequate resource allocation to training and a new education policy were also necessary. The implementation of the policy to combat undeclared work and encourage equality of treatment for migrant workers also constituted an employment policy element that complied fully with the Convention.

In conclusion, he hoped that, taking into account the fact that the Committee could not discuss the case of Colombia, the Italian Government would put pressure on the Government of that country to implement the tripartite agreement signed in 2006. He hoped that the Government would rapidly take steps to reform the legislation in accordance with the recommendations of the Committee of Experts and the Conference Committee.

The Worker member of India recalled that two major Italian trade unions had sent comments to the Committee of Experts on the uneven and decreasing trend in employment and productivity, the persistent high long-term unemployment rate and the unfair and inefficient tax cuts which would indirectly affect the workers. Moreover, territorial balance had to be kept in national growth and labour flexibility had to be an outcome of collective bargaining and not of the arbitrary dictates of the Government and the employers. There should be a tripartite mechanism to see that reforms were not adverse to the interests of the workers. Job security was an important right of workers without which all other forms of security were meaningless. Hence, the Government had to make much more extensive efforts.

He declared his solidarity with the workers of Italy and requested that the Government provide information on the effective implementation of an appropriate employment policy and to ensure the full employment of women, the promotion of employment for older people, measures to educate workers and the genuine participation of trade unions in employment reforms instead of perfunctory consultations, such as those criticized by the Italian trade unions.

The Worker member of France remarked that a break with Act 30/2003 would also be a rupture with the notion that the right to work was an obstacle to competition and growth. The Act had been promulgated by the executive and gave a leading role to the principle of labour market flexibility, while playing down the leading role of legal rules to the benefit of contractual freedom, which in practice was to the employer's advantage. Among the different types of contract instituted, the continuous and coordinated collaboration contract considered an employment relationship as a service. On-call work was another means of underpaying workers who nevertheless had to remain available. As to shared work or project contracts, both constituted forms of precarious work instituted by the system set up in 2003 in the same way as flexible part-time work or the extension of the possibility of using overtime, or even of modifying working hours, which were a key element of the employment contract. This resulted in widespread underemployment, even though its elimination was one of the main aims of the Convention. The weakening of workers' rights in favour of employers' rights and the decline in income caused by the multiplication of precarious employment contracts were also contrary to the objective of improving the standard of living through an active labour market policy. The Convention was absolutely critical in an international framework which promoted flexibility. This instrument made it possible to combat the phenomenon of poor workers currently developing in Europe. Involuntary part-time contracts and low hourly wages were the result of this situation which, moreover, mostly affected women. In addition, it was not only a question of just creating jobs, but of ensuring their type and quality. Finally, she supported the call made by the Worker member of Italy for the implementation of the Convention and for the Government to repeal Act 30/2003.

The Government representative recalled that her Government had only been in power for one year and that several issues and demands presented by the Worker members had already been taken into account. Indeed, flexibility was not a key element of the policy followed by the Government; permanent contracts should be considered as the norm and priority should be given to combating precarious and clandestine work. Another political objective was employment creation for young workers and women, and narrowing the gap between the north and south. The Government had already created four negotiation groups in which the social partners were involved in establishing policies in these areas.

She said that the discussion seemed to belong to the past, to another government. Indeed, the current Government had already introduced changes, and the results were starting to be seen, particularly with respect to the employment of women, the reduction of poverty and the fight against clandestine work.

The Employer members observed that finding consensus on labour market policy questions was not easy. It was not possible to legislate against unemployment and policies could only be adopted to make a difference in this respect. One area where consensus appeared to exist was that meaningful and productive employment was a pathway to human and economic dignity and well-being. It was a way out of poverty and social disadvantage. Another area of consensus could be that measures to reduce unemployment and help vulnerable groups required commitment and support beyond governments, especially if structural changes were required. Reform efforts rarely worked if they were imposed on unwilling communities. Thus, the view of the Committee of Experts that the social partners needed to participate in the development of these measures reflected the right approach.

Since this case involved a change in Government, it involved the opportunity for new methods and fresh thinking, and a new resolve to tackle issues, which seemed to be the approach that was being adopted by the Government. The information sought by the Committee of Experts was therefore particularly timely as it provided the new Government with an opportunity to inform the international community of its intentions, and of the process by which it would seek to achieve the objectives of the Convention.

The Worker members invited the Government to continue to provide all the information requested to ensure that the Committee could examine the issue in greater depth. The Government should do everything to combat the high unemployment rate and the differences and inequalities that existed in the labour market and to combat the rise in precarious work. Another priority would be the revision of Act No. 30/2003. It was satisfying to hear the Government's statement that permanent employment contracts should be considered as the norm and that flexibility was no longer the focal point of the employment policy. Italy should defend this position before the European authorities. Finally, and as indicated by the Committee of Experts, employment policy should be developed together with the social partners to obtain their support for the implementation of the necessary reforms. Indeed, this now seemed to be the case once again in Italy.

The Committee took note of the interactive presentation and the detailed and informative data supplied by the Government representative, as well as the discussion that followed regarding the measures to support the labour market adopted by the Government in applying this priority Convention.

The Committee welcomed the slight increase in the employment rate and the drop in the unemployment rate, in addition to other labour market indicators reported by the Government, which had announced its intention to reduce temporary and part-time employment, to combat clandestine employment and to promote productive employment for the most vulnerable categories, particularly young people seeking their first job, women and workers in less developed regions. The Government also proposed to foster social dialogue in order to forge an active employment policy and to amend the provisions of Act No. 30 of 2003 on labour market regulations.

The Committee further noted that measures to increase labour market flexibility needed to ensure appropriate protection for workers against dismissal and in obtaining a permanent employment contract which was productive and freely chosen. The Committee invited the Government to continue to mainstream its national programmes for full and productive employment, the promotion of decent work and high-quality work for all, as required by the Convention. It requested the Government to include in its next report detailed information on how the experience and views of the social partners had been taken into account when formulating and implementing employment policy measures. The report should also include information on the impact of the measures taken with a view to increasing the participation of women in productive employment, combating youth unemployment and closing the gap between the various regions of the country in terms of employment.

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The Government communicated the following information:

The Government has sent a late report which contains information concerning its efforts in setting up an active policy for employment development, particularly in the lesser industrialised areas of the country. The Government wishes to present additional information about economic and social policy. This policy was put into place by the competent authorities with the agreement of the social partners and conforms with those adopted by Western industrialised countries, particularly those of the European Community. The Government believe that it has provided in its report a satisfactory response to the observations of the Committee of Experts. The Government is conscious that additional efforts must be undertaken to overcome the historic disequilibrium between the different regions of the country. Convention No. 122 is promotional in its nature and envisages the implementation of articulated, multidimensional policies as well as the verification of the effectiveness of measures adopted. The evaluation of effectiveness would be more useful if it were made in the course of wide and general discussion of the subject and not limited to a single country. This would give substantial homogeneity to the review of existing problems in Western countries and permit a return to important areas of interests in the international socio-economic context. In that situation, the objective of full employment can be attained only by adopting active policies as a measure against the structural causes of unemployment and to control the effects of adjustment.

It would be useful and interesting to dedicate, in the near future, a detailed discussion in the Committee on the Application of Standards to the application of Convention No. 122, in particular for the purpose of exposing problems experienced by homogenous regions.

For its part, the Committee of Experts itself has indicated the need to continue initiatives taken and to complete them. It is a policy moving in this direction which the competent authorities of Italy are undertaking, because the problems of persistent unemployment arise from structural regional disequilibriums. Nevertheless, positive results have been obtained. In reality, the avoidance over the last few years of a worsening of unemployment is due not only to the policies which have been adopted but also to a reversal of a trend which has just begun to become apparent. Since 1988, the date of the last report, the unemployment rate has gone down one point and stabilised below 11 per cent. In general, therefore, during the year 1990 there has been a substantial increase of unemployment. In spite of reassuring overall data, strong concern remains for specific sectors of the labour force and for particular geographic areas. The breakdown of information shows that in southern Italy the level of unemployment has not gone below a certain level, despite measures which were adopted in 1984 to promote employment throughout this part of the country.

Subsequent measures, including those mentioned in the report, were taken recently including measures to promote early retirement, specific measures within the integrated fund for GEPI workers and workers in the south, the refinancing of special funds for the reduction of unemployment with the goal of integrating an employment policy in the south by financing investment projects, the financing of cooperatives in particular areas, and the integration of unemployment benefits.

However, one is more and more convinced of the need to link initiatives aimed at reducing unemployment and improving human resources utilisation with more general measures addressing flexibility of production factors. There is a real risk that ongoing development may take the wrong direction and worsen existing differences; the process of European unification could also increase the gap between the more developed regions and the less advanced. To effectively face a difficult situation in southern Italy, the public authorities considered looking beyond urgent and immediate intervention (which has turned out to be inadequate) in order to adopt an integrated approach to development in accord with an active policy of labour market managment. Particular importance has been placed on public policy supporting small and medium-sized enterprises (currently government policies are oriented toward intervention in development zones more than in individual enterprises) as well as the adoption of projects with high technology content as those have a multiplier effect on growth. The creation of infrastructure and services is a precondition for the above-mentioned development; in-depth studies are in progress in this area. IRI, ENI, and FIAT have implemented wide-ranging projects on the basis of tripartite agreements. FIAT has already decided upon the construction of a large establishment in Basilicata, an underprivileged region in the south. Apart from the above-mentioned agreements, one must emphasise the importance of a very special agreement concluded in March 1991 between the Italian Government and the associations of employers and workers for the overall development of the south. One such agreement was promoted by the National Economic and Labour Committee (a tripartite body with consultative and promotional functions). This agreement aims to sharpen the overall intervention in the south by making more definite the roles of each of the three parties concerned, and by stressing the importance of the occupational aspect, all in encouraging investments for increased employment. For its own part, the CNEL envisaged creating a system of evaluation of the effects of policies adopted following the above-mentioned agreement. The conclusion of tripartite negotiation on labour costs could have important repercussions for development of employment. One of the central points in the renegotiation is the so-called"improper costs" imposed on the enterprise through taxation. The Government has tried this measure (as one may note from the reports on employment policies in 1988-91) in order to guarantee simultaneously the competitiveness of enterprises and higher worker productivity. Furthermore, the instrument of taxation is effective to the extent that it operates selectively by relating to established objectives, in encouraging employment by categories and underprivileged regions (youth, women, the south).

Another way of basic intervention is the support of employment of women. In this area, two basic considerations are necessary. The first is that the opportunity to take specific measures is confirmed by patterns of employment and by unemployment in Italy. Currently, the rate of unemployment is about 17 per cent for women and 7 per cent for men. The consideration tends to recognise the positive aspect of this situation. In effect, the high rate of unemployment for women is due to the increase in numbers of women in the labour market. The second point is the parallel increase in supply and demand confirms this. The data is in itself positive and implies the need for specific interventions to favour employment of women and the promotion of equality of opportunity. A very important law was adopted on 10 April 1991. It provides for affirmative action with a view to attaining equality between men and women in the world of work. Affirmative action has already been established by way of negotiations and concluded; the law has as an objective the general elimination of all obstacles to effective equality in training, access to labour market, and career development, in work and job mobility. This law provides specific financing for the execution of affirmative action such as the institution of a Committee for Equal Opportunity. It provides also for reversal of the burden of proof in legal cases as regards the presumption of discriminatory action or behaviour based on sex.

In regard to the promotion of employment of youth, many legislative interventions (beginning in 1984) were introduced including important rules governing the arrangements of work, such as for example, in job training contracts, part-time employment, and encouragement of the creation of enterprises by youths. In this area, it should be noted that public policies supporting youth employment have always been accompanied by measures for the protection and regulation of labour relations. This has occurred in particular in atypical work which is specially protected in Italy by giving workers increased protection.

The initiative of the competent authorities has been extended with a view towards putting in place public instruments on the job market, such as Law 56/87 which provides for the active management of the labour market.

In conclusion, the Government would reiterate its conviction that economic and social policy engagement is in full agreement with the ILO Convention in question.

In addition, a Government representative referred to the written information submitted by her Government. She indicated that, due to administrative reorganisation, the report of the Convention had been submitted in March 1990, but she assured that in future her Government would respect its obligation to reply within the given time period. As noted by the Committee of Experts, the slow-down in economic growth and the increase in unemployment in industrialised countries affected Italy as a whole, but in particular the Mezzogiorno region which was historically less developed than the rest of the country. Various meausres adopted in Italy had had a positive effect since, compared to 1988, unemployment had fallen by one point. The public authorities, moreover, continued in their efforts to define more clearly the different types of unemployment, particularly where young workers and women were concerned, so as to promote their position in the labour market. Another positive sign was the growing number of female workers with access to an increasingly broad spectrum of employment. The law adopted in April 1991, to promote positive action in the area of equal opportunities and treatment for men and women in employment, should have a significant impact. Although much remained to be done, many steps had already been taken. In co-operation with their social partners, the authorities responsible would continue, through wide-ranging and multi-faceted policies, to encourage positive developments in regions and sectors particularly affected by unemployment. Despite the continuing risk that regional differences might be accentuated, as well as those between certain categories of the workforce, the foundations to cope with this had been aid on the political and legislative level. In conclusion she underlined that the range of employment policies adopted and, in particular, the agreement on global development reached in March 1991 between the Government and the workers' and employers' organisations, testified to her country's determination to give active priority in economic policy to the promotion of full employment.

The Workers' member of Italy declared that the Committee of Experts' report showed clearly that economic progress did not necessarily lead to economic growth. This applied particularly to industrialised countries. The reasons could be sought in the rapid process of modernisation and economic restructuring and in the development of new technologies which required less manpower. The trade unions were preoccupied by the level of unemployment resulting from this process, in Italy as a whole, but especially in the Mezzogiorno, where economic progress had always been slower than in the north and centre of the country, despite efforts by the Government over the last few years to revitalise the labour market and stimulate employment in the region. In this connection he underlined that the implementation of such measures to limit the impact of market economy principles and counteract international competition, the globalisation of the economy and the process of integration with the European Community, for example, could lead to a further marginalisation of the less developed regions. With regard to Article 3 of the Convention the Workers' member stressed that the trade unions in his country were generally satisfied with the consultation process between the Government and the social partners. In this context, he referred to the concerted action leading to the Pact for economic development in Mezzogiorno, signed in March 1991. A tripartite delegation would shortly be undertaking important discussions for the establishment of a common platform for the comprehensive reform of the fiscal system which currently weighed heavily on salaried workers. It was a question of discussing the restructuring of salaries and a new distribution of social costs. With regard to Article 2 of the Convention the ILO should devote greater attention to the social consequence of restructuring projects and those aimed at reorganising the finances of a country, such as are often imposed by international bodies. Such projects frequently bore negative consequences, both for employment and for the standard of living of workers, especially in the developing countries.

The Employers' members expressed their concern that the Italian Government had not submitted its reports within the deadline. This was a frequent and consistent practice of the Government, not only for Convention No. 122, but for most of those for which reports were due. The information subsequently submitted by the Government and by its representative pointed out a certain number of fundamental problems, notably in the Mezzogiorno and amongst certain categories of workers. Several measures had been taken concerning the employment of women and the preoccupying situation of young people. The agreement signed by the Government and the social partners over the development of the South was also positive. Employment policy was dynamic however, and new measures must therefore be undertaken. It was for this reason that the Convention did not prescribe fixed steps, but set down objectives which could be achieved through different means. The Convention aimed to promote full and freely chosen employment. The steps to be taken varied according to the country and circumstances in question. Employment policy could not be considered in isolation and must be closely linked to other aspects of economic and social policy. In this regard, there are no precise rules; the Convention simply indicates that the policy should be formulated taking into account the employment objectives and other economic and social objectives. For this reason, it was extremely difficult to evaluate employment policy within the framework of the Convention and to assess in what measure governments were fulfilling these objectives. Abstract criteria should not exist. Depending on the national context, governments should be asked to emphasise the particular problems of certain regions or certain categories of workers in applying their policies.

The Workers' members fully supported the declaration of the Employers' group concerning the importance of submitting reports within the deadlines, particularly those connected with Convention No. 122. Two fundamental elements were contained in the Convention; firstly, the requirement that an active policy designed to promote full employment be declared and pursued and, secondly, that the persons affected be consulted. This aspect was particularly important, for many of the difficulties encountered stemmed from the lack of adequate discussion with the social partners, where employment policy was concerned. In this regard, they were pleased that the Italian Workers' member had declared the process of consultation to be satisfactory in his country. It was to be hoped that the dialogue would continue in such a manner as to lead to a solution to the employment problems existing in Italy. With regard to the decrease in unemployment mentioned by the Government representative, they underlined that the Committee of Experts had also expressed concern over worldwide unemployment and over the considerable gaps noted in certain regions, where the level of unemployment was much higher than average.

The Government representative declared that her Government had noted with satisfaction the observation made by the supervisory organs and that it shared the concern expressed over the current employment situation. The Government would continue to declare and pursue an active policy for the creation of qualified employment, within the normal framework of tripartite collaboration.

The Committee took note of the detailed oral and written information supplied by the Government. It expressed regret that the Government report had not been sent in time to be examined by the Committee of Experts. The Committee noted with interest the tripartite collaboration established within the framework of the social pact. It also noted, however, that despite the Government's efforts, the implementation of legislation and the measures adopted in the framework of employment policy had not resolved the employment situation, which remained worrying, especially with regard to disparities between regions, age groups, and between the sexes. The Committee hoped that the Government would provide all the necessary information to the Committee of Experts, regarding the effective implementation of the Convention and, notably, on the steps taken to apply Article 1 thereof. It hoped, moreover, that the Government would respond within the given time-scale to the request for information of the Committee of Experts.

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Articles 1 and 2 of the Convention. Active employment policies and programmes. Measures to alleviate the impact of the COVID-19 pandemic. The Committee notes with interest the detailed information, including disaggregated statistical data and legislation, provided in the Government’s 2019, 2020 and 2023 reports. The Committee notes the Government’s indication in its 2023 report that it is committed to implementing an active employment policy that is inclusive and efficient, and which aims to encourage active engagement in the world of work, promote vocational and professional training and increase employment. The Government adds that it has taken a series of measures to create new employment opportunities and promote access to employment, with a particular focus on specific groups, such as young persons, women, older workers and persons with disabilities. With respect to the COVID-19 pandemic, the Government reports on measures adopted in response to the impact of the pandemic, including the introduction of a relocation allowance granted to beneficiaries of the Basic Income benefit under section 9 of Legislative Decree No. 4/2019, a New Skills Fund established by the National Agency for Active Labour Market Policies (ANPAL) under section 88(1) of Legislative Decree No. 34 of 19 May 2020, as well as measures supporting the recruitment of health staff under section 83 of Legislative Decree No. 34 of 19 May 2020. In this context, the Committee notes that Italy is implementing an ambitious Recovery and Resilience Plan (PNRR) from 2016 to 2022, financed by the European Union. The Government reports that the PNRR represents a unique opportunity for development, investment and reform. Its principal objective is to place the country back on the path to sustainable and lasting economic growth and recovery from the socio-economic impacts of the COVID-19 pandemic. The investment programmes set out in the PNRR are built around six objectives (referred to as “missions”). In the specific context of active policy reforms, the Government highlights the importance of mission 5 on inclusion and cohesion to achieving the PNRR’s cross-cutting objectives of increasing employment opportunities for young persons, supporting women’s empowerment and reducing gender-based discrimination and achieving better balance between regions. Employment-related measures under mission 5 include: reforming the active employment and training policies currently regulated by the National Employability Guarantee Program (GOL), reforming the national plan to combat undeclared work (lavoro sommerso), investing in optimisation of employment centres (CPIs) and investing in the dual training system. The Committee notes the Government’s indication that the GOL programme is expected to reach at least 3 million beneficiaries by 2025, of which 75 per cent are expected to be women, long-term unemployed persons, persons with disabilities, young persons under 30 and workers over the age of 55. In addition, 800,000 of the beneficiaries are to be engaged in training activities, of which 300,000 will receive training to strengthen their digital skills. The GOL programme also proposes a new service model for CPIs based on a personalized approach that takes into account users’ needs and includes services related to: return to work, upskilling, reskilling, and employment services aimed at users with complex needs. Taking note of the above, the Committee notes that employment policies are much more effective designed and implemented duly taking into account the mutual relationships and need for coordination between employment objectives and other economic and social objectives and policies. In this respect, effective coordination between employment policy and social protection policy represents a strong driver for the successful designing and implementation of effective active labour market strategies and measures. The Committee also wishes to emphasize in this respect that the success of activation policies aimed at supporting employment, as well as that of social protection measures more generally, is also the result of effective strategies that tailor policy interventions to employment barriers and to individual circumstances. In this respect, while focusing on groups that are generally considered disadvantaged or those with greater difficulties to engage in the labour market, such as young persons, the long-term unemployed, women or persons with disabilities, these measures also require fine-tuning as these groups are not necessarily homogeneous and often comprised of subgroups with a wide variety and combination of employment barriers – certain measures may effectively reach the ambitioned objectives for certain members of the subgroup but be largely ineffective for other large segments which require a longer-term approach to addressing employment barriers with greater emphasis on active labour market measures. Identifying and having a more refined vision and understanding of the combinations of barriers faced by each of these subgroups also allows better crafting effective measures to successfully address the root-causes of unemployment and underemployment and achieving through an integrated employment policy the objectives pursued by the Convention, including in terms of stimulating economic growth and development, and raising levels of living. With reference to the above, the Committee requests the Government to provide updated detailed information, including statistics disaggregated by sex, age and region, on the nature, scope and impact of the reforms and the active labour market policies, programmes and measures implemented to promote full, productive and freely chosen employment. The Committee requests the Government to communicate updated information with respect to the achievement of the targets set for the implementation of the active employment and training policies adopted, including those measures targeting groups in vulnerable situations, in particular those in regions with higher rates of poverty and unemployment. The Committee also requests the Government to provide information on the nature, scope and impact of the measures adopted and implemented to combat undeclared work.
Labour market trends. The Committee notes the data available from the Italian National Statistics Office (ISTAT), which reflects severe impacts on national employment and unemployment rates between 2019 and 2021 due to the impact of the COVID-19 pandemic. It nevertheless notes that, according to the 2023 European Commission Country Report on Italy (the 2023 country report), the demand for labour increased between 2021 and 2022, with activity rates returning to 2019 levels. In 2022, the national employment rate reached 64.8 per cent, but remained significantly below the EU average of 74.6 per cent. In the same year, the overall unemployment rate declined to 8.1 per cent, one of the highest in the EU (the unemployment rate for women (9.3 per cent) was higher than that of men (7.1 per cent). Data available from the ILO Department of Statistics (ILOSTAT) indicates that the overall unemployment rate for young persons aged 15–24 in 2022 was 23.7 per cent – almost three times the unemployment rate for persons aged 15–64 during the same period. The unemployment rate for young women (25.8 per cent) was higher than that for young men (22.3 per cent). The 2023 country report notes that, while the unemployment rate of young persons aged 15–24 is falling, at nearly 24 per cent, it remains one of the highest in the European Union. Moreover, the share of young people 15–29 who are not in employment, education or training (NEETs) declined to 19 per cent in 2022 but remains higher than the EU average of 11.7 per cent. The high prevalence of non-standard forms of work, especially among young persons, and undeclared work are continued challenges. Lastly, the 2023 country report refers to substantial differences between the northern and southern regions of the country in terms of employment and participation, suggesting that overcoming these long-standing challenges and improving active labour market policies would help Italy achieve its national employment rate target of 73 per cent by 2030. The Committee requests the Government to provide updated information, including statistical data disaggregated by age, sex and region, on employment and labour market trends, including information on employment, unemployment and visible underemployment.
Employment of young persons. The Committee notes the information provided by the Government on the Youth Guarantee programme, which had over 1,475,000 young persons registered as of as of 30 April 2019. The Government adds that over 633,000 young persons benefitted from active policy measures in 2019, with a national coverage rate of 57.2 per cent. The Government nevertheless refers to regional disparities, noting that coverage is lower for young people from the southern regions and the islands, and higher in the north and northwest regions. The Committee notes that extra-curricular internships are the most common active labour market measure (57.8 per cent of the total interventions), followed by the employment incentive (24.5 per cent). These incentives are made up of the youth employment incentive (9.1 per cent), the employment bonus (8.2 per cent), the super bonus (1.4 per cent) and as of January 2018, an incentive for employment of young persons not in employment, education or training (NEETs) (5.9 per cent). Additional interventions include training (12.6 per cent and support at work (2.9 per cent). Employment placement rates of young persons having completed one or more active policy interventions stood at 54 per cent as of 30 April 2019. The employment rates recorded in the northern regions are, however, some 20 percentage points higher than in the south and the island regions. In this respect, the Committee notes the incentives financed by the National Operational Program for Active Policy Systems for Employment as part of the youth guarantee, which provides incentives for employment in the South. The Committee also notes the information provided by the Government on the implementation of other initiatives, such as the Growing Entrepreneurs project, as well as the SELFIE Employment project, a revolving fund for self-employment and self-entrepreneurship. The Government also reports on the launch of a jobs incentive, I Work (Io Lavoro), which aims to encourage private employers to hire young workers aged 16–34, as well as workers 35 years of age or younger who have been unemployed for at least six months. Noting the gender and regional disparities mentioned above and referring to its comments on Articles 1 and 2 of the Convention, the Committee requests the Government to provide information on targeted measures taken or envisaged to promote the inclusion of young women in education, training and employment. The Government is also requested to provide information on measures taken or envisaged to promote access to employment for young persons belonging to disadvantaged groups and those vulnerable to intersectional discrimination. Finally, the Committee asks the Government to continue to provide detailed information, including statistics disaggregated by sex, age and region, on the nature, scope and impact of the measures taken to reduce youth unemployment.
Employment of women. The Committee notes the Government’s indication that the employment rate for women has been increasing slowly but steadily over the past years. The Government nevertheless notes that the gap between the employment rate of women and men aged 20–64 remains significant, with a 19.5 per cent gap in 2019. According to the 2023 European Commission Country Report on Italy, the employment gap between women and men remained significant in 2022 at 19.3 percentage points. The Government adds that the employment rate for women also varies significantly by region, noting that the employment rate for women 20 to 65 in the southern region is almost half of that in the northeast region of the country. The Government attributes this gap at least in part to the amount of time spent by women in unpaid domestic and caregiving tasks, on which they spend 2.5 times as much time as men. It adds that the need to reconcile family and professional responsibilities leads many more women (35 per cent) than men (nine per cent) to resort to part-time work. One-third of women aged 25–34 years of age in part time work are not seeking a full-time job, and of this percentage, 65 per cent requested reduced hours to enable them to care for their children or other dependent persons. Moreover, according to ILOSTAT, in 2022, less than one in four women (23 per cent) occupied senior and middle management positions. In this context, the Committee notes a series of measures taken by the Government to address gender disparities in the world of work. These include the adoption of a National Gender Equality Strategy (2021–2026), the adoption of Decree – Law No. 105 on 3 June 2022, on improving work-life balance for men and women workers, and the creation of a National Observatory for the integration of gender equality policies. With reference to its comments under Articles 1 and 2 above, the Committee observes that barriers to employment faced by women can vary significantly ranging from unpaid care responsibilities to a combination of barriers such as little or no attachment to the labour market, comparatively lower levels of education and difficulties linked to the employment situation by regions and lack of services in the region in which they reside. The Committee therefore requests the Government to continue to provide detailed updated information, including statistical data disaggregated by sex, age and region, on the nature, scope and impact of measures taken to improve the participation of women in the labour market, including in management and decision-making positions. It further requests the Government to supply updated information on progress made in reducing the gender employment gap between women and men of all ages, as well as on measures taken or envisaged to facilitate reconciliation between professional and family responsibilities for both women and men, including by providing adequate childcare facilities.
Employment of persons with disabilities. The Committee notes the information provided by the Government in response to its previous request concerning the application of the labour-cost subsidies introduced in 2016 aimed at encouraging employers to hire persons with disabilities. It further notes the Government’s indication that, with the objective of promoting the employment of persons with disabilities, on 11 March 2023, the Ministry of Labour and Social Policies adopted Ministerial Decree No. 43, which establishes Guidelines on Targeted Placement. The Committee also notes the establishment of a database in relation to the targeted placement of persons with disabilities. The Government is requested to continue to provide updated detailed information, including statistical data disaggregated by age, sex and region, with respect to the nature, scope and impact of measures taken to promote the employment of women and men with disabilities in the open labour market, including targeted placement measures, vocational and professional training and awareness-raising measures designed to disseminate information about the capabilities of persons with disabilities.
Education and training policies and programmes. The Committee notes the information provided by the Government concerning the National Plan for New Competencies (PNC), adopted by inter-ministerial decree of 14 December 2021. The PNC is incorporated into the PNRR and focuses on meeting the need for new skills required in the labour market, to reduce skills mismatches. The Committee notes that education and training policies and programmes in Italy in recent years have focused on the transition between school and work, through work-based learning programmes, apprenticeships, rotation between school and work, and higher-level vocational training. The NPRR invests in the dual system of vocational education and training and work- based learning launched in 2015, thereby contributing to the achievement of the PNC. The dual system is expected to benefit at least 135,000 participants by 2025, including young persons aged 15–25 and adults without secondary school degrees. The Government also refers to the National Programme on Youth, Women and Employment, which promotes youth employment through providing services such as vocational guidance, training, apprenticeships and entrepreneurship training. The Committee requests the Government to provide updated information on the nature, scope and impact of the education and training policies and programmes implemented, including the dual system, on securing decent and lasting employment for young persons, as well as for other groups vulnerable to decent work deficits and exclusion from the labour market.
Cooperatives. The Committee notes the information provided by the Government in relation to the scheme established by Law No. 49 of 27 February 1985 (the so-called Marcora law), subsequently amended by Law No. 57 of 2001, to support employment through the provision of credit to cooperatives. Section 1 of Law No. 49 provided for the establishment of Foncooper, a revolving fund for the promotion and development of cooperatives. Foncooper’s resources and management were subsequently devolved to the regions. The Committee notes that a new assistance scheme was established pursuant to Decree of the Ministry of Economic Development in 2014 (the so-called New Marcora law), which aims to promote the creation and development of small and medium-sized cooperatives. The financial resources allocated to implement this new scheme were increased pursuant to Law No. 232/2016 (the 2017 budget law). Subsequently, Law No. 205/2017 (the 2018 budget law) introduced innovations in the regulation of cooperatives, including in aspects linked to social lending, supervision and governance. The Committee notes that article 1, paragraph 936 of the 2018 budget law provides for the imposition of heavy sanctions aimed at combating the phenomenon of false cooperatives. The Committee requests the Government to provide detailed updated information on the impact of the measures taken to promote full, productive and lasting freely chosen employment through cooperatives. The Government is requested to provide information on the number of cooperatives benefiting from these measures, the number of jobs created as a result of the measures, and the type and outcome of any measures taken to address the phenomenon of false cooperatives.
Article 3. Consultation with the social partners and representatives of the persons affected by the measures to be taken. The Committee notes the information provided by the Government, which indicates that it places great importance on consultation with the social partners in developing employment policies, noting that consultations are held with the social partners at state, regional and local level prior to legislative or regulatory interventions in the social and economic fields. The Government adds that it convenes the most representative organisations of employers and workers at the national level on an annual basis, engaging in consultations with respect to the annual budget, through which resources aimed at employment and the promotion of small and medium-sized enterprises are allocated. The process aims to inform and consult the social partners regarding proposals and measures to be adopted as part of current labour market reforms. In addition, the social partners are engaged on an ongoing basis in the National Economy and Employment Council established under article 99 of the Italian Constitution. The Committee requests the Government to continue providing updated detailed information in its next reports on the manner in which representatives of the persons affected by the measures to be taken, and in particular representatives of employers and workers, are consulted concerning employment policies, with a view to taking fully into account their experience and views and securing their full co-operation in formulating and enlisting support for such policies. The Committee also requests the Government to provide full particulars on the nature, scope and outcome of consultations held with the social partners regarding the development and implementation of employment policies and programmes on the basis of regularly updated labour market data, including on the basis of trends in employment, unemployment and underemployment.

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The Committee notes the observations of the Italian General Confederation of Labour (CGIL) and the Italian Confederation of Workers’ Trade Unions (CISL), received in October 2016, and the Government’s reply thereto.
Articles 1 and 2 of the Convention. Measures to alleviate the impact of the crisis. The Committee welcomes the Government’s detailed report. The Committee notes the information provided by the Government in response to its previous request for information on the manner in which the Government ensures, in consultation with the social partners, a comprehensive approach to employment policies aimed at improving the employment situation in the country and fostering job-rich inclusive growth. The Committee notes the adoption, on 19 June 2015, of Decree-Law No. 78 (as amended by Act No. 125 of 6 August 2015) and Legislative Decree No. 150 of 14 September 2015. The Government indicates that this new legislation is intended to strengthen the entire framework of labour related services and active employment policies, particularly the employment service, which it considers essential to ensure the effective implementation of active employment measures throughout Italy. To this end, Legislative Decree No. 150/2015 established the National Agency for Active Employment Policies (ANPAL) to ensure improved coordination of employment policies at national level. In addition, on 30 July 2015, the Government signed a Framework Agreement with all of the regions of the country, to ensure the effective functioning of the public employment offices across Italy. Pursuant to section 15 of Decree-Law No. 78/2015, several northern and southern regions entered into an agreement with the Government to regulate and strengthen employment policies in those regions. The Government also reports that, under the Stability Act of 2016 (Act No. 208/2015), the employment incentives established by the Stability Act of 2015 (Act No. 190/2014) have been reduced. Under Act No. 208/2015, entrepreneurs benefit from an exemption of 40 per cent in paying social security contributions for new employees, but the duration of the exemption is reduced to 24 months, rather than the 36 months established under Act No. 190/2014. The Government also reports the introduction of measures, including economic incentives, to encourage enterprises to hire persons belonging to specific categories of workers vulnerable to decent work deficits and exclusion, such as persons with disabilities. The Government reports that, as of January 2016, it is providing labour-cost subsidies to promote regular employment for persons with disabilities. The subsidy provides a range of incentives for enterprises that employ persons with disabilities, with the largest subsidies for enterprises employing persons with more than 79 per cent disability, those employing persons with 45–67 per cent physical or psychological disability and those employing persons with between 45 and 67 per cent disability. Persons with less than 45 per cent disability are not eligible for the subsidy. The Committee notes that, according to data from the Italian National Institute of Statistics (ISTAT) (May 2016), most labour market indicators continued to show positive trends in 2016. The ISTAT data for the fourth quarter of 2016 reflect a slight increase of 0.1 percentage points in labour market participation, with an overall employment rate of 57.4 per cent. The Government indicates that this figure reflects a slight decline ( 0.1 percentage points) in the employment rate for persons aged 15–34. The employment rate for those aged 35–49 remained stable and the employment rate for those aged 50–64 increased slightly (+0.4 percentage points). The quarter-on-quarter increase in the number of persons employed was the result of increased numbers of persons in self-employment (+0.5 percentage points), increased numbers of fixed-term employees (+0.9 percentage points), and a slight decrease in the number of permanent employees (-0.1 percentage points). Increases in the employment rate were concentrated in the central and northern regions (+0.5 percentage points), with employment decreasing in the south and the islands ( 0.7 percentage points). The overall unemployment rate increased slightly to 11.9 per cent (+0.2 percentage points) after having remained stable over the four previous quarters. In their observations, the trade unions express the view that 2016 was characterized by increased employment, but that this growth remains insufficient. The Committee requests the Government to provide additional information on the application of the subsidies introduced to encourage employers to hire persons with disabilities, indicating the number of persons with more than 79 per cent disability placed in employment, as well as the nature and per cent of disability. Please also indicate the measures taken to promote the employment of persons with physical or psychological disabilities with less than 45 per cent disabilities, who under the current legal framework are excluded from the subsidy.
Youth employment. The Committee notes that the Government has continued to promote training programmes targeting young people. As of July 2016, 1,101,903 young persons aged 18–25 years have participated in the Youth Guarantee Programme (Garanzia giovani), with their participation rate increasing by 20.5 per cent from December 2015 to May 2016. The Government indicates that, as of April 2016, 52,582 young persons have benefited from the Digital Growth Programme (Crescere in digitale), which offers 50 hours of free online training to all Italian young people not in employment, education or training (NEET) and who are registered in the Youth Guarantee Programme. In addition, the Government introduced a new measure, the Grow Entrepreneurs Programme (Crescere Imprenditori) which is expected to train over 6,000 NEET people and assist them in launching their own start-ups through the “SELFIEmployment” fund (microcredit and subsidized loans provided by the Government to support self-employment). The Committee notes the observations of the CGIL and CISL expressing their appreciation of efforts made by the Government to promote youth employment, and call for more to be done in this area. The Committee requests the Government to continue to provide detailed information, including statistics disaggregated by sex and age, on the impact of the measures taken to reduce youth unemployment, as well as information on active labour market measures taken or envisaged to create opportunities for decent work for young persons, particularly those belonging to groups vulnerable to decent work deficits and exclusion.
Employment of women. The Committee notes that, according to the European Commission Country Report Italy 2017, the potential of female labour market participation remains largely underutilized. The employment rate remains low at 50.6 per cent for women aged 20–64 (20 percentage points less than for men in the same age group), as does the female activity rate (54.1 per cent in 2015). The Committee requests the Government to provide information on the measures taken to improve the participation of women in the labour market
Education and training policies and programmes. The Committee notes the Government’s indication that it is in the process of strengthening apprenticeships and work-based learning programmes to equip a new generation with relevant work skills. Measures are being taken to increase the learning and qualifications components of apprenticeships, and encourage more young people to participate. An ongoing national pilot initiative for students aged 15–25 is being carried out through 300 vocational training centres across Italy. Curricula and learning criteria have been agreed at national level and the necessary funding has been allocated for this purpose. To strengthen work-based learning, all students in the last three years of upper secondary education are now required to do a traineeship or apprenticeship. The Committee notes that the Government has introduced measures to promote employment for other groups, such as older workers. It has established the “Manager to work” programme to help older persons return to work through giving bonuses to employers that hire qualified persons aged 50 and over. The Committee notes that, according to the European Commission Country Report Italy 2017, while refugees showed a relatively high employment rate in 2014 (61.3 per cent), high inflows posed a challenge that would require further social and labour market integration efforts. While they are entitled to personalized integration support (language training, ten hours of adult education per week and civic integration classes), only about a fourth of refugees took up integration support. The Committee notes the observations of the CGIL and CISL, which call on the Government to invest greater resources to promote education and training policies and programmes aimed at promoting overall employment. The Committee requests the Government to continue to provide information on the impact of education and training policies and programmes, including apprenticeships, on securing decent and lasting employment for young persons as well as other groups vulnerable to decent work deficits and exclusion from the labour market. The Committee further wishes to draw the Government’s attention to Paragraph 12 of the Employment and Decent Work for Peace and Resilience Recommendation, 2017 (No. 205), and invites it to provide information on active labour market measures taken or contemplated with a particular focus on the labour market integration of refugees.
Cooperatives. The Committee notes that the Government’s report contains the same data provided in its previous report. The Committee therefore wishes to draw the Government’s attention to the provisions of the Promotion of Cooperatives Recommendation, 2002 (No. 193), and requests the Government to provide updated information on the measures taken or envisaged to promote full, productive and freely chosen employment through cooperatives.
Article 3. Consultation with the social partners. The Committee notes that, in reply to its request for additional information on consultations held with the social partners on the development and implementation of employment policies, the Government reports that a new dialogue process was undertaken in May 2016. It adds that the process aims to inform and consult the social partners regarding proposals and measures to be adopted as part of current labour market reforms. The Committee also notes the observations of the CGIL and CISL indicating that consultations with the Government are not always satisfactory given the Government’s focus on informing the social partners rather than on engaging in a genuine dialogue with them. The Committee requests the Government to provide detailed information in its next report on the manner in which it ensures, in consultation with the social partners, a comprehensive approach to the development and implementation of employment policies aimed at improving the employment situation in the country and foster job-rich inclusive growth, in accordance with the Convention. The Committee also requests the Government to provide additional information on the nature and extent of consultations held with the social partners regarding the development and implementation of employment policies on the basis of regularly updated labour market data, including on the number, kind and duration of employment, on youth and gender issues and regional disparities.

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Follow-up to the conclusions of the Committee on the Application of Standards (International Labour Conference, 104th Session, June 2015)

Articles 1, 2 and 3 of the Convention. Measures to alleviate the impact of the crisis. The Committee notes the discussion that took place in the Conference Committee on the Application of Standards in June 2015 concerning the application of the Convention. It also notes that the Conference Committee requested the Government to provide a detailed report on the issues raised in its conclusions. Recalling some points that were previously raised during the Conference Committee, the Government indicates in its report that the Jobs Act (Act No. 183/2014) reviewed the system of social shock absorbers and requirements for dismissal of workers. The Jobs Act also introduces measures for rationalizing the administrative burden for companies and citizens; creates economic incentives for permanent employment contracts; and establishes the National Network for Labour Policies (Rete Nazionale dei Servizi per le Politiche del Lavoro), coordinated by the new National Employment Agency (Agenzia Nazionale per le Politiche Attive del Lavoro, ANPAL). Other measures introduced by the new legislation include the simplification of apprenticeship contracts and the “replacement contract”, a new employment contract which allows unemployed persons to receive additional services to enhance their labour market integration (“assegno di ricollocazione”). Further interventions aimed at balancing life and work, especially for women, were introduced by the Stability Act of 2015 (Act No. 190/2014). In addition, with the Action and Cohesion Plan 2015, the Government indicates that it has taken measures to counteract regional disparities of employment levels within the national territory. The Committee notes that, according to the National Institute of Statistics (ISTAT) data (June 2015), most labour market indicators have showed a positive trend in the second quarter of 2015. In particular, new hires recorded significant growth averaging more than 9.7 per cent over the last year, while the number of new permanent-term contracts increased by 34.6 per cent and the number of employed workers increased by 0.8 per cent from 2014. In addition, long term-unemployment decreased from 61.9 per cent to 59.5 per cent, and youth unemployment amongst those aged 15–24 decreased by 0.5 percentage point when compared to the previous year. The Committee requests the Government, in the same way as the Conference Committee, to provide information on how it ensures, in consultation with the social partners, a comprehensive approach to employment policies in order to improve the employment situation and foster job-rich inclusive growth, in line with the Convention. The Committee also requests the Government to provide further information on the consultations held with the social partners on the development and implementation of employment policies, based on regularly updated labour market data, including on the number, kind, duration of employment, and youth and gender issues and regional disparities.
Youth employment. The Government indicates in its report that, until October 2015, 807,315 persons aged up to 25 years old have been involved in the Youth Guarantee Programme (“Garanzia giovani’’) aimed at promoting youth employment and vocational education and training. In September 2015, the Government also launched the first European Employment Services (EURES) Job project, which aims to create 600 placements, 150 apprenticeships and 150 traineeships for young people aged 18–35. The programme includes providing financial benefits for small and medium-sized enterprises, for example, an integration programme of recently hired young workers and enhanced recognition of the qualifications of pre-selected jobseekers. Furthermore, the Committee notes that, with the Digital Growth programme (“Crescere in digitale”), the Government has fostered the use of online training courses for young people. The Committee requests the Government to continue to provide information on the impact of the measures taken to reduce youth unemployment.
Education and training policies and programmes. With the view of improving the impact of education and training policy in youth employment, the Government indicates that it has promoted since September 2015 an experimental programme aimed at implementing the use of apprenticeships in enterprises as relevant experience to obtain secondary education professional qualifications. Moreover, in June 2015, the Government introduced a unitary national reference framework for the reciprocal recognitions of over 2,600 regional vocational qualifications. The Committee requests the Government to continue to provide information on the impact of education and training policies and programmes, including apprenticeships, in terms of obtaining lasting employment for young persons and other groups of vulnerable workers.
Cooperatives. In order to promote productive employment through cooperatives and to reduce the employment gap between northern and southern regions of the country, the Government issued the Ministerial Decree of 4 December 2014, which provides new incentives for the development of small and medium-sized cooperatives aimed at recruiting workers from enterprises in crisis within all the national territory and restructuring existing cooperatives in southern Italy. According to the data provided by the Government, the number of cooperatives with a positive impact on employment has increased from 45 per cent in 2008 to more than 65 per cent in 2015, with a significant increase of the total number of cooperatives over the past 15 years (currently 106,970 cooperatives). The Committee refers to the Promotion of Cooperatives Recommendation, 2002 (No. 193), and requests the Government to continue to provide information on the measures taken to promote productive employment through cooperatives.

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Articles 1, 2 and 3 of the Convention. Measures to alleviate the impact of the crisis. Employment trends. The Committee notes the report provided by the Government in October 2013 which includes information on the measures adopted towards combatting informal employment and the transition from education to the labour market. Measures adopted in 2013 were directed towards four priorities: (i) the creation of employment through open-ended contracts; (ii) the promotion of self-employment; (iii) attracting young people who are neither in employment nor in education or training (the “NEET” group) to the labour market through apprenticeships; (iv) the fight against extreme poverty. The Committee notes the 2012 labour market reform measures under Law No. 92/2012 which aims to achieve a comprehensive and dynamic labour market, capable of contributing to the creation of jobs, in terms of quantity and quality, to social and economic growth and to the permanent reduction of the unemployment rate. Information from the 2014 annual report of the National Institute for Statistics (ISTAT) shows that the only type of employment that has increased when compared to 2008 employment figures is part-time employment. ISTAT data also indicates that unemployment reached 12.6 per cent in May 2014, an increase of 0.5 percentage point when compared to the same period in 2013. The number of unemployed persons was measured at 3,222,000 persons, an increase of 127,000 over a one-year period. Moreover, the Committee notes in the ISTAT 2014 annual report the continued differences in employment and unemployment rates between northern and southern regions of Italy. The unemployment rate in Italy was 12.2 per cent in 2013 (5.4 percentage points higher than in 2008 and 1.5 higher than in 2012) with unemployment reaching 19.7 per cent in southern Italy. The Committee previously noted the difference in occupation levels registered for both women and men. ISTAT data shows that the employment rate of men was measured at 65 per cent in July 2013 and 46.8 per cent for women. In view of the increase of unemployment that has occurred since the 2012 observation, the Committee requests the Government to indicate the manner in which Article 2 of the Convention is applied, namely whether a regular review is undertaken of the measures and policies adopted for attaining the objectives of the Convention specified in Article 1. The Committee also requests the Government to provide information on the effects of the measures adopted on closing the gap of employment levels between the various regions of the country and on addressing the gap between employment levels of women and men. Please also provide information on the manner in which the experience and views of the social partners have been taken into account in the implementation and evaluation of employment policy measures (Article 3).
Youth employment. The Committee notes the high youth unemployment affecting all regions in Italy. It notes in this regard from ISTAT that unemployment among young people in the 15–24 age group was measured at 43 per cent in May 2014, an increase of 4.2 percentage points when compared to the previous year. The Committee notes the youth employment measures which include one that is to be implemented until June 2015 and is directed at the creation of open-ended employment contracts for young people up to the age of 29 by providing cost reductions to hiring enterprises during an 18-month period. In this regard, Law Decree No. 76/2013, converted into Law No. 99/2013, provides for a budget of €794 million for the 2013–16 period for incentives to employers when hiring young workers under an open-ended contract (€500 million for regions of southern Italy and €294 million for other regions). The Government indicates that that interventions under the legislation adopted in 2013 are only the first step in its strategy to promote employment, particularly youth employment, and social cohesion. A second group of measures will be defined as soon as the European institutions have approved the rules for the use of structural funds for the period 2014–20 and those for the Youth Guarantee. The Committee requests the Government to provide information that will enable it to examine the outcome of the measures taken to reduce youth unemployment.
Education and training policies and programmes. The Committee notes the information included in the Government’s detailed report on the application of the Human Resources Development Convention, 1975 (No. 142), received in November 2013, indicating that, as of the 2013–14 academic year, Permanent Territorial Centres will be established in provincial centres for adult education to provide structured training for levels of learning aimed at achieving qualifications. The Committee requests the Government to provide information on the impact of education and training measures, including apprenticeship programmes, in terms of obtaining lasting employment for young persons and other groups of vulnerable workers.
Cooperatives. In reply to the Committee’s previous comments, the Government indicates that the number of cooperatives has increased from 70,029 in 2001 to 79,949 in 2011, employing over 1.3 million workers. During the economic crisis, the growth continued and reached 80,844 in the third quarter of 2012. The Committee refers to the Promotion of Cooperatives Recommendation, 2002 (No. 193), and invites the Government to continue to provide information on the measures taken to promote productive employment through cooperatives.

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Articles 1 and 2 of the Convention. Employment trends. The Committee notes the replies provided by the Government in December 2011 to the matters raised in its 2010 observation. The Government recalls that its strategy to tackle the effects of the global crisis on the labour market consisted of a mix of initiatives aimed at extending social safety nets and promoting active labour market measures for the re-employment of workers. Measures adopted between 2009 and 2011 focused on further broadening the coverage and extending the duration of income support schemes, providing income support to categories of workers not covered by existing schemes, providing employment subsidies to employers hiring workers benefiting from income support mechanisms and to unemployed workers setting up their own businesses, and enhancing the education and training system. In April 2011, an Agreement was signed between the State and regions which envisaged active labour market measures for the retraining and re employment of workers. It targeted improving labour market information databases (Excelsior and Cliclavoro websites), expanding the role of inter professional joint funds and bilateral bodies managed by the social partners in providing training, and narrowing the use of income support schemes. The data of the National Institute for Statistics (ISTAT) showed that economic growth was stagnating (GDP growth was 0.1 per cent and 0.3 per cent, respectively in the first and second semester of 2011), due to weak internal demand and a decrease in export volumes. The unemployment rate reached 8.9 per cent (2,243,000 unemployed persons) in December 2011, more than half being long-term unemployment. The Employment Outlook 2011 of the Organisation for Economic Co-operation and Development (OECD) indicates that the Italian labour market is becoming more segmented, with more mature workers in stable, protected jobs and many young workers in more precarious jobs. In this regard, the Committee recalls that new legislation was adopted regulating the limitation of temporary employment contracts. The Government also reports that, according to trade unions, in many cases derogations allowed by collective agreements pursuant to the new legislation were exceeded, resulting in many workers not benefiting from a stable employment relationship. In 2011, about 67,000 persons employed in the education sector working on a temporary basis were employed under permanent contracts. In October 2011, the Government expressed its intention to review structural fund programmes by focusing on education and employment with the aim of improving the conditions to enhance growth and tackle the regional divide. The Committee refers to its 2011 observation on the application of the Private Employment Agencies Convention, 1997 (No. 181), in which it noted that temporary work agencies were used for replacing workers with permanent employment thus contributing to labour market segmentation; temporary workers, including those employed by temporary work agencies, were the most affected by the crisis. The Committee invites the Government to provide in its next report information on the measures adopted to address labour market segmentation and their impact on achieving the objectives of the Convention. It also requests the Government to specify how it keeps under review the policies and measures adopted to achieve the objectives of full, productive and freely chosen employment (Article 2 of the Convention). Please also provide information on the effects of the measures adopted on closing the gap of employment levels between the various regions of the country.
Youth employment. The Government indicates that the Italia 2020 – Action Plan for Youth Employability through Training and Employment (€1.1 billion earmarked), was presented to the social partners in August 2011. The Government also reports on the initiatives undertaken by the Ministry of Youth to promote employment and training for youth through job placement services and a fund for financing training initiatives. The Committee notes that the youth unemployment rate rose from 24 per cent in the second trimester of 2009 to 31 per cent in December 2011, with rates in southern regions double those in northern regions. The Committee also notes that the gap between the youth and adult long-term unemployment rates is extremely large, with young people three times more likely to be unemployed for at least one year compared to adults. The Committee invites the Government to provide detailed information in its next report on the efforts made to improve the employment situation for young persons and the results achieved in terms of job creation and sustainable employment as a result of the programmes adopted.
Women and other specific categories of workers. The Government indicates that the increase in occupation levels registered in the second trimester of 2011 compared to the same trimester of the previous year mainly concerned women, whose employment rate increased by 2.5 percentage points, reaching 46.7 per cent (compared to 67.8 for men). The Government reports on the legislative measures taken in 2010 to strengthen the regulatory framework on non-discrimination between men and women in respect of employment, as well as to encourage work/life balance for women through flexible working time, the strengthening of public childcare services and support to entrepreneurship. The Government indicates that the Welfare to Work Plan, 2009–11 was launched in order to assist vulnerable workers. Targeting 230,000 workers benefiting from income support mechanisms and 25,000 workers not covered by unemployment benefits, this plan relies on individual training plans and economic incentives for enterprises willing to re-employ workers as well as for workers setting-up their own businesses. The Committee invites the Government to provide in its next report information on the impact of the Welfare to Work Plan, 2009–11, and other measures designed to encourage and support the employment of women and other specific categories of workers, such as the long-term unemployed.
Education and training policies. The Government recalls that in February 2010 the Government, regions, autonomous provinces and social partners signed an agreement to define guidelines for training. The agreement, which was renewed for the period 2011–12, enhances the role of social partners and their bilateral bodies in offering education and training matching with labour market needs. The Government indicates that, following the adoption of Legislative Decree No. 167/2011, the apprenticeship system was reformed. This reform enhances the collaboration between the State, regions and the social partners with respect to training, as well as the role of enterprises in providing training. Moreover, training possibilities under the third-level apprenticeship (high-level training) are broadened. The Committee invites the Government to provide information on the impact of education and training measures, including the reform of apprenticeship, on the employability of young persons and other categories of vulnerable workers.
Cooperatives. The Government indicates that anti-crisis measures regarding the temporary broadening of income support mechanisms also apply to workers in cooperatives. It further refers to data showing that since 2000 employment levels in cooperatives increased by 37 per cent and continued to grow during the crisis. Women accounted for 59 per cent of the workers in cooperatives and foreign workers for 22 per cent. 90 per cent of workers in cooperatives were hired under regular employment contracts. The Committee invites the Government to continue to provide in its next report information on the measures taken to promote productive employment through cooperatives in line with the Promotion of Cooperatives Recommendation, 2002 (No. 193).

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The Committee notes the detailed replies provided in the Government’s report received in December 2009 to the matters raised in its 2007 observation.

Articles 1 and 2 of the Convention. Employment policy measures taken in response to the global crisis. The Committee notes that the unemployment rate rose from a low of 6 per cent in 2007 to 8.2 per cent in 2009: more than 2,200,000 persons were seeking employment in the first trimester of 2010, 1 million persons in the South, more than 800,000 persons in the North and some 440,000 persons in the Centre according to the data published by ISTAT. Employment has decreased the most in the manufacturing sector, which accounted for 60.6 per cent of the total net employment losses from
July–September 2008 to the same period of 2009. Other badly affected sectors include wholesale and retail trade, real estate, rental and business services, hotels, restaurants and construction. Three stimulus packages were implemented by the Government since the start of the crisis. The largest component (around 38 per cent) of the 2009 outlay of the combined Italian fiscal stimulus packages was support for business in the form of increased access to credit and subsidies. The next largest item was investment in infrastructure projects (23 per cent). Twenty per cent of the resources were devoted to income support measures, while the remaining 19 per cent was allocated to improve the functioning of the labour market, including training, job search assistance and subsidized reductions in working hours. The Government indicates that, among the measures taken in response to the global crisis contained in Decree-Law No. 185 of 28 November 2008, those regarding employment include: facilitating the employment of individuals benefiting from income support mechanisms; anticipating the re-employment of workers benefiting from the Cassa Integrazione Guadagni (CIG) (Wage Guarantee Fund); strengthening job-security agreements; and stimulating self-employment. Labour market measures focused on the mechanisms which ensure income support in case of risk of unemployment. The Government temporarily broadened the coverage of some of the existing mechanisms, namely the scheme to protect workers’ income in firms threatened with financial difficulties due to the crisis or restructuring, by providing unemployment benefits and mobility allowances. At the end of 2009, more than 36,000 enterprises involving 250,000 workers were expected to use those mechanisms. In January 2009, applications for unemployment benefits and mobility allowances increased by 44.2 per cent compared with 2008, reaching 750,000 persons. The Government also reports that, in the framework of the global crisis, various agreements with the social partners signed at the regional level were aimed at facilitating the access to credit of enterprises, reducing working time and broadening the coverage of income support mechanisms. The Committee invites the Government to provide information in its next report on how the policies designed and the programmes implemented will translate into productive and lasting employment opportunities for the unemployed and other categories of vulnerable workers affected by the global crisis. It requests the Government to provide information on the effects of the measures adopted to close the gap between the various regions of the country as to the levels of employment.

Other labour market measures. In reply to previous comments on limits to temporary and part-time employment contracts, the Government indicates that, according to the legislation applicable since 2001, a temporary employment contract cannot exceed 36 months. Act No. 247 of 24 December 2007 amended the previous legislation to impose a permanent employment contract after 36 successive months of work under contracts for a specified period of time. The only exception provided for in Act No. 247 is the possibility of a single further renewal of up to eight months subject to certain conditions. The Committee invites the Government to provide information in its next report on the impact of new legislation regulating the limitation of temporary employment contracts in satisfying the employment needs of workers whose contracts of employment have ended.

Youth employment. The Government indicated in its report that it launched the plan of action Italia 2020, which is mainly designed to facilitate the entry into the labour market of young persons under 25 years. This plan, among others, aims to: strengthen career service networks in high schools and universities; enhance vocational training, training within the workplace and apprenticeship; promote continuous learning; and stimulate an offer of universities in line with the labour market needs. Following the distribution of the funds from the Youth Policy Fund for the period 2007–08 to regions, provinces and municipalities, framework agreements were signed with all regions in order to stimulate creativity, entrepreneurship and employment of young persons while fostering regional productivity and creating stable and qualitative employment. Various other initiatives were carried out especially to promote entrepreneurship among youth and to foster youth employment. The Committee notes that the youth unemployment rate between 2007 and 2009 rose by almost 6.5 per cent points for a total of 26.3 per cent. In its 2010 General Survey concerning employment instruments, the Committee noted that there was a growing problem of unemployment among educated workers, particularly young university graduates who are unable to find secure employment commensurate with their skill level. This is an issue for advanced market economies as well as developing countries. Not only are their skills underutilized but this pattern of casual jobs can prove detrimental to their lifetime career progression (see paragraph 800 of the 2010 General Survey). The Committee invites the Government to continue to provide detailed information in its next report on the efforts made to improve the employment situation for young persons and the results achieved in terms of job creation and sustainable employment as a result of programmes adopted.

Women and other specific categories of vulnerable workers. The Government indicated in its report that Ministerial Decree of 13 November 2008 identified the regions in which the employment rate for women was less than 20 per cent of mens’ or in which the unemployment rate for women was more than 10 per cent of mens’. The Government also indicated that the Programme of Action for the Re-employment of Vulnerable Workers (PARI), aimed at re‑employing vulnerable workers, was continued and enhanced. The direct beneficiaries of the programme are workers benefiting from income support or other benefits linked to unemployment and particular categories of workers including young persons, women and workers over 50 years old. PARI relied on individual training plans as well as on economic incentives to enterprises willing to re-employ the beneficiaries of the programme and incentives to individuals choosing self-employment. PARI has been carried out in 18 regions. As of 30 June 2009, more than 18,000 workers were employed in the framework of PARI. The Committee invites the Government to provide in its next report information on the impact of PARI and other measures designed to encourage and support the employment of women and other specific vulnerable categories of workers such as older workers.

Educational and training policies. In its 2010 General Survey concerning employment instruments, the Committee noted that the reform of the education system introduced by Act No. 133 of 2008 is aimed at the rational and effective use of funds giving priority to the planning and implementation of a new territorial governance of education and training. It also noted that, in order to align training more closely to the needs expressed in the labour market, the system of higher technical education and training is being reorganized to offer higher technical specialization as an alternative to university studies (see paragraphs 120 and 583 of the 2010 General Survey). The Government in its report provides information on training policies and inter-professional joint funds. The Committee notes the Government’s statement indicating that investing in human capital is likely to increase productivity and reduce the risk of unemployment. The inter‑professional joint funds, which are established by employers’ and workers’ organizations through specific agreements, are mechanisms for financing company, sectoral and regional training plans that enterprises decide to run for their own employees. For the period 2004–08, inter-professional joint funds for continuing training approved more than 6,000 training plans involving 35,000 enterprises and almost 764,000 workers. The Committee would appreciate receiving information on how the educational and training measures are coordinated with employment policies. It would also welcome information on how the regional authorities and the social partners participate in the design and implementation of training policies and programmes.

Cooperatives. The Committee recalls that in its 2010 General Survey concerning employment instruments, it noted that the cooperative legislation in Italy offers a good example in terms of innovation and development (see paragraphs 464, 474 and 478 of the 2010 General Survey). The Committee invites the Government to provide in its next report information on the measures taken to promote productive employment through cooperatives in line with the Promotion of Cooperatives Recommendation, 2002 (No. 193).

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The Committee notes that the Government’s report has not been received. It must therefore repeat its observation which read as follows:

1. Follow-up of the discussion at the 96th Session of the International Labour Conference (June 2007). Subsequent to its 2006 observation, the Committee notes the conclusion of the tripartite discussion that took place at the Conference Committee in June 2007. The Conference Committee invited the Government to pursue its national programmes for full and productive employment, the promotion of decent work and high-quality work for all, as required by the Convention. Replying to requests by the Conference Committee and the 2006 observation, the Government supplied in August and October 2007 comprehensive information in which it confirms its intention to reduce temporary and part-time employment contracts by imposing time limits on such contracts, in order to facilitate workers obtaining permanent employment contracts. The Committee welcomes this approach and encourages the Government to continue providing information in its next report on the manner in which the objective of full and productive employment has been taken into account in the formulation of economic and social policy. It would also appreciate continuing to receive information on the experience of the social partners in regard to the application of the Convention.

2. Articles 1 and 2 of the Convention. Employment trends and active labour market policies. The Government provided data indicating that, although the unemployment rate continued to decline, figures from the first quarter of 2007 show that there was a slowdown in employment growth after a sustained growth in 2006. Also, an increase in employment in the north and centre regions in 2006 was noted while observing a decrease in the south for this same period. Measures were taken to combat clandestine work which resulted in 94,000 workers in the construction industry being added to the legal registers. Also, the status of 22,000 call centre workers changed from self-employed persons to workers with an employment contract. Amendments to Act No. 30 of 2003 were adopted through the Finance Act 2007 and Decree-Law No. 223/2006 including other measures geared at encouraging growth and employment, combating illegal work and promoting safety in the workplace. Provisions included increasing tax deductions for corporations employing workers with an indefinite-term contract of employment and actions to suspend work on construction sites where illegal workers are employed. In this regard, the Committee asks the Government to provide further information on the effects of legislative and other measures adopted to promote employment and, more specifically, on closing the gap between the various regions of the country as to the levels of employment.

3. Means to promote youth employment. The Government raised the minimum age from 15 to 16, and provided additional financing for vocational training and the training of apprentices. It also intends to pass legislation directed at combating youth unemployment. The proposal for future legislation includes measures such as facilitating access to funding for young entrepreneurs as well as easing the transfer of small businesses from one generation to the next. Also, Decree-Law No. 223/2006 established a Youth Policy Fund that aims to promote the right of young people to cultural and vocational training and that creates measures to facilitate access to credit. The Committee notes the 2006 ISTAT labour force survey indicating that 21 per cent of students leave school prematurely. Some 900,000 people left school prematurely with a disproportionate percentage of school leavers in the south compared to the north or centre. Moreover, school leavers in the south typically do not enter the labour force in contrast to those in the north and centre who tend to be early entrants into the labour force. The survey also indicated that males tend to leave school at a higher rate than females. In this regard, the Committee asks the Government to include in its next report information on how recently adopted measures, geared at combating youth unemployment, have translated into lasting employment opportunities for young workers entering the workforce.

4. Women and other specific categories of vulnerable workers. The Committee notes that the Government has indicated its intention to continue with the implementation of measures to promote employment of women under the Finance Act of 2007 which includes tax incentives for the employment of women on indefinite-term contracts in the south of the country. The Government has taken measures to encourage the re-employment of workers over 50. In particular, it has enacted legislation to create the possibility of “solidarity between generations” agreements whereby those over 55 may voluntarily convert from full-time to part‑time status, with unemployed young persons under 25 permitted, under a part-time contract, to work the number of resulting hours. The Committee notes with interest this innovative approach and asks the Government to provide in its next report detailed information on the impact of measures designed to encourage and support employment levels of vulnerable categories of workers such as women and older workers.

5. Article 3.Participation of the social partners in the formulation and application of policies. The Government reports that social dialogue and consultation was reinforced with the social partners, at both the local and national level, by establishing permanent consultative round tables. It indicates that interaction with the social partners in the numerous consultative round tables on welfare, protection of the labour market and growth has been decisive in defining the problems encountered. The Committee trusts that the Government will continue to provide information on the consultations held with the social partners including details of their contribution to the implementation of an active employment policy within the meaning of the Convention.

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1. Follow-up of the discussion at the 96th Session of the International Labour Conference (June 2007). Subsequent to its 2006 observation, the Committee notes the conclusion of the tripartite discussion that took place at the Conference Committee in June 2007. The Conference Committee invited the Government to pursue its national programmes for full and productive employment, the promotion of decent work and high-quality work for all, as required by the Convention. Replying to requests by the Conference Committee and the 2006 observation, the Government supplied in August and October 2007 comprehensive information in which it confirms its intention to reduce temporary and part-time employment contracts by imposing time limits on such contracts, in order to facilitate workers obtaining permanent employment contracts. The Committee welcomes this approach and encourages the Government to continue providing information in its next report on the manner in which the objective of full and productive employment has been taken into account in the formulation of economic and social policy. It would also appreciate continuing to receive information on the experience of the social partners in regard to the application of the Convention.

2.  Articles 1 and 2 of the Convention. Employment trends and active labour market policies. The Government provided data indicating that, although the unemployment rate continued to decline, figures from the first quarter of 2007 show that there was a slowdown in employment growth after a sustained growth in 2006. Also, an increase in employment in the north and centre regions in 2006 was noted while observing a decrease in the south for this same period. Measures were taken to combat clandestine work which resulted in 94,000 workers in the construction industry being added to the legal registers. Also, the status of 22,000 call centre workers changed from self-employed persons to workers with an employment contract. Amendments to Act No. 30 of 2003 were adopted through the Finance Act 2007 and Decree-Law No. 223/2006 including other measures geared at encouraging growth and employment, combating illegal work and promoting safety in the workplace. Provisions included increasing tax deductions for corporations employing workers with an indefinite-term contract of employment and actions to suspend work on construction sites where illegal workers are employed. In this regard, the Committee asks the Government to provide further information on the effects of legislative and other measures adopted to promote employment and, more specifically, on closing the gap between the various regions of the country as to the levels of employment.

3. Means to promote youth employment. The Government raised the minimum age from 15 to 16, and provided additional financing for vocational training and the training of apprentices. It also intends to pass legislation directed at combating youth unemployment. The proposal for future legislation includes measures such as facilitating access to funding for young entrepreneurs as well as easing the transfer of small businesses from one generation to the next. Also, Decree-Law No. 223/2006 established a Youth Policy Fund that aims to promote the right of young people to cultural and vocational training and that creates measures to facilitate access to credit. The Committee notes the 2006 ISTAT labour force survey indicating that 21 per cent of students leave school prematurely. Some 900,000 people left school prematurely with a disproportionate percentage of school leavers in the south compared to the north or centre. Moreover, school leavers in the south typically do not enter the labour force in contrast to those in the north and centre who tend to be early entrants into the labour force. The survey also indicated that males tend to leave school at a higher rate than females. In this regard, the Committee asks the Government to include in its next report information on how recently adopted measures, geared at combating youth unemployment, have translated into lasting employment opportunities  for young workers entering the workforce.

4. Women and other specific categories of vulnerable workers. The Committee notes that the Government has indicated its intention to continue with the implementation of measures to promote employment of women under the Finance Act of 2007 which includes tax incentives for the employment of women on indefinite-term contracts in the south of the country. The Government has taken measures to encourage the re-employment of workers over 50. In particular, it has enacted legislation to create the possibility of “solidarity between generations” agreements whereby those over 55 may voluntarily convert from full-time to part-time status, with unemployed young persons under 25 permitted, under a part-time contract, to work the number of resulting hours. The Committee notes with interest this innovative approach and asks the Government to provide in its next report detailed information on the impact of measures designed to encourage and support employment levels of vulnerable categories of workers such as women and older workers.

5.  Article 3.Participation of the social partners in the formulation and application of policies. The Government reports that social dialogue and consultation was reinforced with the social partners, at both the local and national level, by establishing permanent consultative round tables. It indicates that interaction with the social partners in the numerous consultative round tables on welfare, protection of the labour market and growth has been decisive in defining the problems encountered. The Committee trusts that the Government will continue to provide information on the consultations held with the social partners including details of their contribution to the implementation of an active employment policy within the meaning of the Convention.

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The Committee notes the detailed information contained in the Government’s comprehensive report received in October 2005, as well as the relevant documents attached. It also notes the comments made by the Italian Confederation of Workers’ Unions (CISL) and the General Confederation of Italian Trade Unions (CGIL).

1. Employment trends and active labour market measures. Supplemented by the data published by the OECD, the report demonstrates that, although the unemployment rate continued to decline (from 8.6 per cent in 2003 to 8 per cent in 2004), employment growth showed a marked slowdown and the employment rate (57.6 per cent in 2004) remained below the EU target. The Committee also notes that the labour market is still characterized by regional segmentation, with relatively high levels of employment and productivity in the north and the centre, and the opposite in the south. The report also highlights the labour market integration difficulties experienced by young persons under 25 years of age, whose unemployment rate stood at 26.2 per cent in 2004, as well as a persistently high proportion of long-term unemployment. In its comments, the CGIL points out that the Government has lacked the will to direct public resources to research, training and innovation, in order to assert a competitive strategy for the Italian economy on products and services of high added value, and that it has instead focused on unfair and inefficient tax cuts. In this regard, the Committee asks the Government to provide information in its next report on the effectiveness of the programmes adopted and the measures taken to promote territorial cohesion in order to fill the gap between the various regions of the country as regards the level of employment. It also asks the Government to continue to provide information on the measures taken and the results achieved in reducing the proportion of long-term unemployment.

2. The Committee notes that the Government’s report refers to Act No. 30/2003 and implementing Decree No. 276/2003 concerning the regulation of the labour market. The report also lists a number of measures adopted by the Government mainly to promote labour market flexibility. For instance, labour contracts that include a training component have been rationalized, while more flexible forms of entering the labour market have been facilitated. According to the CGIL, and contrary to what had been previously announced by the Government, the measures implementing Act No. 30/2003 have not been the subject of any evaluation by the social partners and the new types of labour contracts have had little success. For its part, the CISL also calls for flexibility to be subject to the outcome of collective bargaining, in order to ensure that the use of these new labour contracts remains in the framework of the applicable legislation, thereby protecting the workers concerned. In this regard, the Committee asks the Government to report on the measures taken to generate sustainable employment and improve employment security for workers who have benefited from the provisions of Act No. 30 of 2003. The Committee also asks the Government to keep providing information concerning the implementation, monitoring and evaluation of its policies to facilitate the full employment of women, combat youth unemployment and facilitate the continued participation of older persons in the labour force (Articles 1 and 2 of the Convention).

3. While the Committee notes that the Government cites the strengthening of education and training as one of its main employment priorities, data published by the OECD Economic Survey (November 2005) exhibit a significant deficit in terms of human capital vis-à-vis the OECD average. In this regard, the Committee asks the Government to provide further information on its programmes and measures to raise the educational attainment of the workforce, reduce the school drop-out rate and increase the labour market relevance of tertiary education with a view to facilitating the transition from studies to work.

4. Participation of the social partners in the formulation and application of policies. The Government indicates that all the legislation regarding the reform of the labour market was the outcome of a long period of dialogue with employer and trade union organizations. The Government also emphasizes that the National Plan of Action for Employment was the subject of consultations with employer and trade union organizations and that, during the period covered by the current report, continuous and in-depth discussions took place on all issues related to employment policies. On this issue, the CISL indicates that there has been a systematic deterioration in trade union participation in government decisions. The CISL states that the Government has replaced a concerted exchange of views and social dialogue with mere consultation. According to the CISL, the 2005 National Plan of Action for Employment was established without due consultation with the social partners. The Committee recalls that, under the terms of the Convention, the measures to be taken in relation to employment policy should take fully into account the experience and views of the social partners with a view to securing their full cooperation in formulating and implementing employment policies. It requests the Government to provide detailed information in its next report on the consultations held with the representatives of the social partners and the progress achieved regarding the requirement of consultation on the matters covered by the Convention, as established in Article 3.

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The Committee notes the report provided by the Government in September 2003. It is also aware of the National Plan of Action for Employment, 2003. The Committee notes that, according to OECD data, the unemployment rate continued to fall during the period, declining from 9.5 per cent in 2001 to 8.6 per cent in 2003. Although it continues to be one of the lowest in Europe, the participation rate increased slightly to 61.6 per cent in 2003, compared with 60.7 per cent in 2001. Despite this overall favourable trend, the characteristics of unemployment remain a matter of concern, particularly with regard to the persistent gap between the north and the south of the country, the labour market integration difficulties experienced by young persons under 25 years of age, whose unemployment rate is 26.3 per cent, and the proportion of long-term unemployment, with 58.2 per cent of the unemployed being without jobs for over 12 months.

1. Labour market and training policies. The Government describes in its report the principal innovations introduced by Act No. 30 of 14 February 2003 to reform the labour market, which is intended to modernize the operation of the labour market and make it more flexible. The strengthening of the public employment services, for which responsibility is transferred to the regions, is combined with a liberalization of the operating conditions of private employment agencies with a view to achieving greater complementarity between public and private actors on the labour market. Labour contracts which include a training component have been rationalized, while more flexible forms of entering the labour market are facilitated by the reform of the labour regulations respecting part-time and temporary work. Furthermore, Act No. 53 of 28 March 2003 reforming the education and training system is intended to increase the proportion of vocational training in the education system and to promote the combination of initial training and work so as to improve employability through closer links with the labour market. The Committee requests the Government to provide with its next report any available evaluation of the results achieved through these structural reform measures of the labour market and of training. Also noting the information provided at its request on the measures adopted to improve the situation of women in the labour market, including reform of the part-time work regulations, the Committee requests the Government to continuing providing such information, with an indication of the results achieved in terms of the long-term integration of women into productive and freely chosen employment.

2. General economic policies. The Committee would be grateful if the Government would supplement the information provided on labour market policies with a description of the manner in which the main aspects of general economic policy contribute to employment promotion. In particular, it requests the Government to indicate the manner in which employment objectives are taken into account in the adoption of measures in such fields as monetary, budgetary and taxation policies, and prices, incomes and wages policies. Please also describe the measures adopted or envisaged in the field of regional development policy, taking into account the specific employment problems in the south of the country.

3. Participation of the social partners in the formulation and application of policies. The Committee notes that employment policy measures form part of the framework agreed upon with the social partners which endorsed the Pact for Italy of July 2002. It requests the Government to continue providing detailed information on the consultations held with the representatives of the persons affected, both at the stage of formulating employment policies and in relation to the implementation of the measures adopted under such policies.

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The Committee notes the information provided by the Government in July 2001 in reply to its observation of 2000, and the detailed report received in November 2002.

1. Articles 1 and 2 of the Convention. The Government states in its report that between January 2000 and January 2001 there was an increase in GDP of around 3 per cent, resulting in the creation of 656,000 new jobs. The positive results include a reduction in the unemployment rate which, for the first time in the past decade, fell below 10 per cent. The reforms carried out have created a conducive environment for the occupational integration of women, young persons and long-term unemployed. The report also included detailed information on the measures adopted to promote the employment of elderly workers and persons with disabilities. While employment increased in all regions, employment in the Mezzogiorno rose at a slower rate. The measures adopted in practice to combat youth unemployment in the Mezzogiorno include apprenticeship training, contracts combining work and training, as well as vocational guidance and training. These programmes are designed to bring young persons into direct contact with the world of work. Approximately 20,000 apprentices were trained between 1998 and 1999, with the Government’s objective consisting of the training of around 70,000 young persons in 2000. The unemployment rate for young persons fell slightly from 33.8 per cent in 1998 to 31.1 per cent in 2000. The Committee also notes that despite the rise in employment that occurred as a consequence of the labour market reforms introduced since the mid-1990s, employment and participation rates are low, particularly in the South, and among young people, women and people above the age of 55. The Committee would be grateful if the Government would include in its next report information on the measures taken to avoid the risk of developing a dual labour market, particularly in view of the increase in atypical forms of employment, and to implement structural reforms particularly to improve the coordination of education and training policies with prospective employment opportunities.

2. The Government also refers in its report to various legislative initiatives (for the implementation of European Community Directives, provisions respecting illegal work and budgetary laws) relating to labour policy. The Committee would be grateful if the Government would continue providing information in its next report on the manner in which the labour market measures have contributed to the achievement of the objectives of full and productive employment, as set out in the Convention.

3. The Government states that the activity rate of women is the highest achieved up to the present, but that it proposes to promote further the participation of women in the labour market by means of training services and special placement services, as well as through measures to improve the balance between work and life. The percentage of unemployed women fell from 16.1 per cent in 1998 to 14.5 per cent in 2000. Nevertheless, the possibilities for women to obtain stable employment with a permanent contract continued to be lower than those of men. The Committee would be grateful to continue receiving information on the measures adopted to increase the employment of women and the results achieved.

4. The Committee notes that the Government intends to reform the public employment service with European Union funds to facilitate the achievement of its commitments under the European Employment Strategy. The Committee would be grateful if the Government would also include information in its next report on the progress achieved in reforming the public employment service.

5. Article 3. The Committee notes the observations made by the General Confederation of Industry (CONFINDUSTRIA), which were attached to the Government’s report. CONFINDUSTRIA refers to the information available on the national employment plans issued annually by the Governments of Member States of the European Communities. CONFINDUSTRIA emphasizes the systematic and decisive role played by the social partners in determining labour policies and that this role has to be fulfilled in compliance with the rules of social dialogue. In this respect, the Committee trusts that the Government will include updated information in its next report on the consultations that have been held with the representatives of employers’ and workers’ organizations with a view to taking fully into account their experience and views and securing their full cooperation in formulating and enlisting support for the employment policy.

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Articles 1 and 2 of the Convention. The Government states that it has finalized the Employment Action Plan, which is based on the four pillars of the Luxembourg Summit Agreement (employability, entrepreneurship, adaptability, and equal opportunity). The Government states that the Employment Action Plan and general employment strategy were established in collaboration with the social partners, and formally agreed to in two signed documents, in 1996 and 1997. The report provides detailed information on programmes established and measures taken to date to implement the Employment Action Plan. The Committee asks the Government to provide information in future reports on the outcome of the measures taken under the Employment Action Plan, in particular the effect on employment promotion in the Mezzogiorno. In this respect, the Committee notes the detailed employment statistics for managers provided by the Minister of Labour. It would appreciate receiving disaggregated employment data on the other segments of the labour market, in particular concerning youth, women, people with disabilities, and the long-term unemployed, as requested in the report form under Article 1.

The Committee also notes the labour market trends indicated in the Annual Report of the National Statistical Institute (presented May 2000) concerning gender issues in employment. The Report states that there is a high presence of women in tertiary activities, as well as exceptional access for women to generally male-dominated professions. The percentage of men in female-dominated professions has also increased. However, the Government comments that "women usually have educational backgrounds and certificates for which there is less demand", leading to lower pay; and "even when women have the same characteristics as men, women experience more difficulties accessing the job market", leading to lower compensation. Women in the Mezzogiorno have more limited access to training. Lastly, the increase in the number of senior citizens has placed an increased burden on women to remain out of the labour market for longer periods of time or to seek primarily part-time or temporary work in order to care for dependents. The Committee appreciates the complexity of the issues involved, and notes the strategies the Government has already adopted to promote employment for women, in particular increasing female self-employment and entrepreneurship. It would appreciate receiving further information on the efforts to improve women’s access to training and to ensure that the training provided better meets market demands for skills; and on strategies developed to ease the burden of caretaking for women who wish to remain in or re-enter the labour market.

The Annual Report of the National Statistical Institute also indicates that young people have more difficulties accessing training courses because training generally is biased towards university graduates, workers with professional diplomas, and workers with work experience. The Committee notes from the OECD Economic Survey for Italy that the Government has adopted a master plan to improve training which targets the needs of youth. However, the OECD considers that the Government is under-investing in skills development, and that much of unemployment can be accounted for by mismatch of skills to demand in the labour market. Please provide further information on the outcome of the master plan, particularly concerning employment promotion for youth.

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1. The Committee takes note of the Government's report which consists entirely of a set of documents and statistics. Bearing in mind the particular difficulty of assessing the application of a Convention which requires the formulation and implementation of a policy, the Committee would be grateful if the Government would in future follow the report form approved by the Governing Body for the provision of the necessary information.

2. The Committee notes that, in the context of a stagnation in the volume of employment, the unemployment rate has remained above 12 per cent, while the worrying features of the distribution of unemployment have been confirmed or have worsened, particularly in terms of the divide between the north (with an unemployment rate of 6.5 per cent in January 1998) and the south (22.4 per cent) and between men (9.4 per cent) and women (16.8 per cent), the situation of young people under the age of 25 (33.8 per cent) and the incidence of long-term unemployment (67.8 per cent of total unemployment).

3. In order to make up for the absence in the report of a presentation of the Government's employment policy, the Committee has referred to the national Employment Action Plan sent in April 1998 to the Council and the Commission of the European Communities. In the Action Plan, the Government sets out the successes of its economic policy, in terms of a rapid fall in the budget deficit and the containment of inflation, which it attributes to its policy of wage restraint agreed with the social partners in the Employment Pact of September 1996. The Government emphasizes that, with the adoption in April 1998 of a Medium-Term Economic and Financial Policy Programme for 1999-2001, employment measures have, for the first time, been adopted within the overall context of general economic and financial policies aimed at achieving high growth and combating the structural causes of unemployment, especially in the south. The Committee observes that the results obtained in re-establishing macroeconomic balances to meet the requirements of the European Pact for Stability and Growth have not so far led to an improvement in the employment situation. The Committee requests the Government to indicate the extent to which its monetary, budget and fiscal policies and wages and incomes policies, as well as the implementation of infrastructure development policies, have contributed to combating unemployment.

4. The Committee notes the Government's description of different labour market policy programmes, such as socially useful work and employment-training contracts. With reference to its previous requests, the Committee again asks the Government to provide in its next report any available assessment of the results of these programmes in terms of the effective and lasting integration of their beneficiaries in employment.

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1. The Committee notes the Government's report. From the information available to the ILO and contained in OECD reports and studies, the Committee notes that, despite economic recovery, the contraction of total employment continued in 1994 (-1.7 per cent) and 1995 (-0.6 per cent), with the unemployment rate reaching 12 per cent by the end of the period. The characteristics of the distribution of unemployment which the Government considered to be a matter of concern in its previous report have become more accentuated. The gap between the unemployment rate in the north (6.4 per cent in July 1995) and the south (20.7 per cent) has widened, with almost one-third of active persons under 25 years of age being without employment and with long-term unemployment accounting for 63 per cent of the total.

2. The Committee has also noted the comments of the Association of Credit Enterprises (Assicredito), that the unemployment struggle calls for macroeconomic measures in favour of non-inflationary growth, together with structural measures to make the labour market more flexible in particular, as well as raise workers' skill levels.

3. The Government provides information in its report on the measures adopted recently to simplify placement and recruitment procedures, and on the implementation of various incentives for recruitment and the promotion of self-employment. The Committee notes that regional employment offices are requested to supply data on the numbers of persons recruited as a result of the incentives financed by the Employment Fund with a view to making an accurate evaluation of their effectiveness. With reference to the requests for information in the report form, the Committee would be grateful if the Government would indicate in its next report the results of this evaluation and provide information concerning the reform of the employment services envisaged by the Government.

4. The Government also states that the programme of socially useful work intended for the long-term unemployed has been extended in scope. The Committee requests the Government to provide any available information on the contribution of this programme to the reintegration of the persons concerned into employment and to the promotion of full, productive and freely chosen employment. With reference to its previous comments, it also requests the Government to continue supplying information on the use that is made of employment-training contracts. The Committee further requests the Government to transmit the text of any official statement affirming that the promotion of full, productive and freely chosen employment remains an essential objective, in accordance with Article 1 of the Convention. The Government could, as in the past, envisage providing information on the contribution that general economic policies have made or are expected to make to the achievement of employment objectives. The Committee would be grateful to receive information in the Government's next report on developments in the wages and incomes policy since the conclusion of the tripartite agreements in July 1993, as well as information on monetary, fiscal and exchange rate policies, as requested in the report form adopted by the Governing Body. It hopes to be able to note an improvement in the employment situation, which remains a matter of concern.

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The Committee notes that the Government's report has not been received. It must therefore repeat its previous observation which read as follows:

1. The Committee notes the Government's report for the period ending June 1992 containing detailed information albeit mostly for 1991 only on the employment situation and the labour market policies implemented. The Committee refers to OECD data and notes that owing to moderate growth in employment there was a slight drop in the unemployment rate which fell from 11.5 per cent in 1990 to 11 per cent in 1991. Since the end of the reporting period, however, employment has ceased to grow and the unemployment rate reached 11.6 per cent in 1992. Furthermore, the major structural characteristics of unemployment and its distribution have remained, for the most part, unchanged. At best there has been a slight attenuation of the regional distribution of unemployment and a slight narrowing of the gap between male and female unemployment rates. Long-term unemployment which still affects approximately 70 per cent of the unemployed, and unemployment of over 30 per cent among the under-25 age group are still particularly worrying. 2. The Government's report recalls the labour market measures to which the Committee already referred in previous comments. It notes in this connection that there was an appreciable drop in the number of training-work contracts, which fell from 470,000 in 1990 to approximately 200,000 in 1992 although, in 50 per cent of the cases, this type of contract has led to permanent jobs for the young people holding them. It would be grateful if in its next report the Government would give the reasons for this drop and continue to provide detailed information on the scope of the various labour market measures and the results obtained. The Committee also notes that Act No. 223 of 23 July 1991 introduced new accompanying measures for enterprise restructuring and incentives to recruit redundant workers and the long-term unemployed. Promotion of the employment of women was also stepped up during the period by the adoption of Act No. 125 of 10 April 1991 providing for positive action in the area of training and employment, and Act No. 215 of 25 February 1992 introducing incentives for women to establish enterprises. The Committee asks the Government to provide information on the effect that these new measures have had on the employment of the persons concerned. 3. With reference to its previous observation, the Committee notes that, in the Government's view, the implementation of the tripartite agreement of March 1991 for the development of the South demonstrates the interdependence of economic development policies and the essential role of the social partners. It would be grateful if the Government would provide any available assessment of the results obtained. The Committee also notes that following negotiations on wages policy, combating inflation and reducing the budget deficit, a new national collective agreement was concluded in July 1993, part of which deals with employment promotion. The Committee asks the Government to provide particulars of the above agreement indicating, more generally, how employment policy falls within "the framework of a coordinated economic and social policy". It hopes in this connection that the next report will indicate how the economic policy measures taken or envisaged in the areas of monetary, budgetary and fiscal policies, investment policy and regional development policy contribute to the pursuit of the objective of full, productive and freely chosen employment.

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1. The Committee notes the Government's report for the period ending June 1994, which contains useful and detailed information on changes in the active population, employment and unemployment, as well as the employment policies pursued. The Government states that the severe recession experienced by the national economy in 1993 resulted in the loss of some 700,000 jobs and an increase in the unemployment rate, which was above 11 per cent at the end of the period, compared with 9.7 per cent in October 1992. Due largely to terminations of employment for economic reasons, the rise in unemployment was more accentuated in the south of the country, which further aggravated the regional difference in the employment situation: the unemployment rate in the south is now over ten points higher than the rates in the centre and north. Over 30 per cent of young persons under 25 years of age are unemployed, while long-term unemployment accounts for nearly 60 per cent of total unemployment. The Government emphasizes that this high level of unemployment, with distributional characteristics that give grounds for concern, is combined with other structural weaknesses affecting the Italian labour market. These include an activity rate which is too low and declined still further due to the withdrawal of persons who were discouraged from trying to find their first job or another job, an excessive proportion of self-employment, a large measure of moonlighting, an insufficient level of skills in the workforce and the prevalence of skills which are not adapted to current requirements.

2. The Government states that by subscribing to the obligations of the 1992 Treaty of the European Union and undertaking to meet the economic convergence criteria set out in that treaty, it has agreed to deny itself the use of the traditional instruments for re-establishing the macroeconomic situation, such as the exchange rate, inflation and the public debt, with the result that the principal burden of adjustment now rests on the labour market. It recognizes in this respect that taking the national currency out of the European exchange rate mechanism and its depreciation, although they were imposed by the financial markets rather than sought by the Government, contributed to attenuating the scale of the recession. In this context and under these constraints, the Government describes the principal objectives of its employment policy, as set out in 1994 in the White Paper "Employment objectives" issued by the Ministry of Labour, which are to promote growth that creates more jobs, render the labour market more flexible and reinforce training activities. It welcomes the conclusion of the agreements of July 1993 on incomes policy, collective bargaining, employment policies and support for productive activities, in which the social partners agreed on common objectives relating to the reduction of the public deficit, the containment of inflation and the promotion of employment, as well as establishing a dual level wage negotiation system, with a view to moderating wage increases. The Committee requests the Government to continue providing information on the measures which have been taken to promote productive activities and employment, in the framework of a coordinated economic and social policy and in consultation with the representatives of all the persons affected.

3. The Committee notes the new provisions implementing employment measures for the regions affected by the crisis. It notes the establishment in this context of an Employment Fund to finance incentives for the maintenance and creation of jobs. The Committee also notes the indications concerning the new functions of promotion, information, assistance and selection for which local employment offices are now responsible. With reference to its previous observation, it notes that the trend for the conclusion of fewer employment-training contracts has been confirmed, but that access to the training and placement system has been extended to young persons under 32 years of age. The Committee requests the Government to continue providing information on the nature and extent of the various labour market policy measures that have been implemented, and to transmit any available evaluation of their effectiveness in terms of the placement of the persons concerned in employment.

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1. The Committee notes the Government's report for the period ending June 1992 containing detailed information - albeit mostly for 1991 only - on the employment situation and the labour market policies implemented. The Committee refers to OECD data and notes that owing to moderate growth in employment there was a slight drop in the unemployment rate which fell from 11.5 per cent in 1990 to 11 per cent in 1991. Since the end of the reporting period, however, employment has ceased to grow and the unemployment rate reached 11.6 per cent in 1992. Furthermore, the major structural characteristics of unemployment and its distribution have remained, for the most part, unchanged. At best there has been a slight attenuation of the regional distribution of unemployment and a slight narrowing of the gap between male and female unemployment rates. Long-term unemployment which still affects approximately 70 per cent of the unemployed, and unemployment of over 30 per cent among the under-25 age group are still particularly worrying.

2. The Government's report recalls the labour market measures to which the Committee already referred in previous comments. It notes in this connection that there was an appreciable drop in the number of training-work contracts, which fell from 470,000 in 1990 to approximately 200,000 in 1992 although, in 50 per cent of the cases, this type of contract has led to permanent jobs for the young people holding them. It would be grateful if in its next report the Government would give the reasons for this drop and continue to provide detailed information on the scope of the various labour market measures and the results obtained. The Committee also notes that Act No. 223 of 23 July 1991 introduced new accompanying measures for enterprise restructuring and incentives to recruit redundant workers and the long-term unemployed. Promotion of the employment of women was also stepped up during the period by the adoption of Act No. 125 of 10 April 1991 providing for positive action in the area of training and employment, and Act No. 215 of 25 February 1992 introducing incentives for women to establish enterprises. The Committee asks the Government to provide information on the effect that these new measures have had on the employment of the persons concerned.

3. With reference to its previous observation, the Committee notes that, in the Government's view, the implementation of the tripartite agreement of March 1991 for the development of the South demonstrates the interdependence of economic development policies and the essential role of the social partners. It would be grateful if the Government would provide any available assessment of the results obtained. The Committee also notes that following negotiations on wages policy, combating inflation and reducing the budget deficit, a new national collective agreement was concluded in July 1993, part of which deals with employment promotion. The Committee asks the Government to provide particulars of the above agreement indicating, more generally, how employment policy falls within "the framework of a coordinated economic and social policy". It hopes in this connection that the next report will indicate how the economic policy measures taken or envisaged in the areas of monetary, budgetary and fiscal policies, investment policy and regional development policy contribute to the pursuit of the objective of full, productive and freely chosen employment.

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1. The Committee notes the Government's report for the period ending June 1990, the information supplied to the 78th Session of the Conference (June 1991) and the discussion in the Conference Committee. The Committee notes that, according to the information available to the ILO or contained in OECD reports, there was a reduction in the unemployment rate in 1990, which fell from 12 to 11 per cent. Despite this overall decrease, there remain major disparities between the regions, between the sexes and between age groups, which continue to be affected in a very unequal manner by unemployment. The regional differences in unemployment rates remain considerable: although the unemployment rate in the South has decreased substantially from 21.1 per cent to 19.7 per cent, this rate is three times higher than in the North of the country. The unemployment rate for women is 17.1 per cent as against 7.3 per cent for men, despite a participation rate by women which remains relatively low. Unemployment is particularly high among young persons (33.6 per cent of the 14-24 age group in 1989). The extent of long-term unemployment, which accounts for over two-thirds of total unemployment, is all the more worrying since 60 per cent of the long-term unemployed are young persons. All these figures bear witness to the continuing gravity of the problem of structural unemployment. The Committee would be grateful if the Government would include in its next report the available information on the situation, level and trends of employment, unemployment and underemployment, both in the aggregate and as they affect particular categories of workers including, as it requested in a previous observation, migrant workers.

2. The Committee notes that the Government gives full recognition to the need to pursue active policies designed to deal with the structural causes of unemployment. In this connection, it notes with interest the information that the resources allocated to active employment policy programmes have been increased substantially over recent years. The Government's report covers all the measures that have been taken, as the Committee has already noted in previous comments, including financial subsidies for the creation of jobs by enterprises in the South, the part-time employment of young persons in work of community interest, the participation of the Fund to Reduce Unemployment in the financing of investments to create jobs, and the financial and technical assistance supplied for the creation of enterprises by young persons in the South. The Committee notes with interest the increased importance of combined employment and training contracts, which covered more than half a million young persons in 1990, and the Government's plans to increase the number of beneficiaries by raising the age limit, to promote the transformation of these contracts into permanent employment contracts and to supplement them by employment preparation contracts intended in particular for young persons of between 15 and 25 years of age. The Committee would be grateful if the Government would continue to supply information on the various programmes that have been implemented, and on the measures that have been taken to assess their impact on the employment of the groups for whom they are intended and on other categories of the population.

3. The Government states that in order to combat unemployment in the South effectively, it is necessary to look beyond isolated emergency measures, which have been found to be insufficient, in order to adopt an integrated approach to development that is coordinated with an active labour market policy. It states that it is convinced of the need to coordinate initiatives to reduce unemployment and develop human resources with more general measures to promote the dynamism of the productive system. The Committee notes these statements and requests the Government to indicate in its next report the general economic policy measures that have been taken or are envisaged, particularly in the fields of investment policy, fiscal policy and regional development policy as a result of this orientation of its employment policy. Furthermore, the Committee would be grateful if the Government would supply information on the measures that have been taken or are envisaged in order to coordinate education and training policies with prospective employment opportunities, taking into account the relevant provisions of Convention No. 142 and the Committee's comments on the application of this Convention.

4. The Committee notes the conclusion in March 1991 of an agreement between the Government and employers' and workers' organisations for the overall development of the South. More generally, it notes with interest, following the debate in the Conference Committee, that the existing consultation procedures between the Government and the social partners on employment policies appear to be functioning in a satisfactory manner. The Committee does not doubt that the Government will continue to supply information on the manner in which the representatives of the persons affected are consulted concerning employment policies.

5. In conclusion, the Committee notes, in accordance with its previous comments relating to the impact of the measures that have been taken on the employment situation, the conclusion of the Conference Committee in June 1991 that the measures taken within the framework of the employment policy, despite the Government's efforts, have not resolved the employment situation, which remained worrying, especially with regard to disparities between regions, age groups and between the sexes. The Committee trusts that the Government will supply, within the time-limits set forth, as requested by the Conference Committee, the necessary information, particularly on the measures adopted in order to achieve the objectives set out in Article 1 of the Convention.

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The Committee notes that the Government's report has not been received. It must therefore repeat its previous observation which read as follows:

1. The Committee notes the information supplied by the Government in its report for the period ending 30 June 1988. The employment promotion policy follows two main directions: greater flexibility in the operation of the labour market and broader functions and responsibilities for the employment services. The measures taken by the Government are therefore intended to facilitate access to the labour market and to strengthen the structures for the integration of workers, and in particular young persons and women seeking their first job. The Government has supplied information in its report, in reply to the Committee's previous comments, on the impact of the programmes that have been adopted in terms of the persons affected. 2. More precisely, within the context of measures to increase the flexibility of the labour market, various standard-setting measures have been taken. Act No. 863 of 19 December 1984 introduced new formulae, such as "solidarity contracts", which are an outcome of agreements between enterprises and workers' organisations for a stable and programmed reduction in working time and remuneration, with the objective of avoiding the elimination of jobs or of creating new jobs. Act No. 863 also provides for "training and employment" contracts which make it possible to recruit young persons for a maximum period of 24 months, during which the employer undertakes to provide, in addition to the corresponding remuneration, appropriate vocational training. Act No. 863 also had the objective of developing part-time work, although the Government notes high resistance by workers to this type of employment, the relatively low importance of which in total employment is confirmed by statistics. More recently, other measures have been adopted, particularly with the objective of compensating for the accumulated inequalities of age, sex and region. Act No. 44 of 28 February 1986 is intended to promote the creation of enterprises and co-operatives by young persons in the Mezzogiorno. Act No. 113 of 11 April 1986 is intended to promote the integration of young persons, women and the disabled who are the victims of long-term unemployment by encouraging their recruitment through tax relief. Direct subsidies were introduced under the Finance Act No. 67 of 11 March 1988 for manufacturing, handicrafts and co-operative enterprises which, between 1988 and 1992, were to take on workers with contracts for an undetermined period, while the Act also provided for the financing of local initiatives for community work to be undertaken in the Mezzogiorno. 3. Secondly, within the context of measures intended to strengthen the employment services, the Committee notes the creation of a general directorate to evaluate the labour market under Act No. 56 of 28 February 1987 respecting the organisation of the labour market, and to co-ordinate information and statistical data on employment. Regional employment commissions, set up under the regional labour and manpower offices, have been made responsible for managing the labour market, while employment agencies have been set up in areas that are particularly badly affected by unemployment. 4. Furthermore, the Committee notes the comments submitted by the General Confederation of Italian Agriculture (CONFAGRICOLTURA) and the Trade Union Association of Petrochemical Enterprises in the Public Sector (ASAP), transmitted by the Government in its report. The CONFAGRICULTURA, which states that it is aware of the gravity and increasingly acute unemployment problem, refers to the contribution that has been made by the measures taken under the collective labour agreement for the agricultural sector and emphasises the value of Act No. 56, which enables the regional employment commissions to take charge at the regional and local levels of the application of measures for the placement of the unemployed and studies on the labour market. The ASAP notes that difficulties of a bureaucratic nature have impeded the regular and satisfactory application of measures for the creation of enterprises by young persons, particularly in the South of the country (the Mezzogiorno). It also draws attention more particularly, among other matters, to the importance of training and, especially, vocational guidance. 5. The Committee notes the efforts that have been made by the Government, which is devoting an increasingly large proportion of public assistance to activities for the disadvantaged regions and groups of the population (the South - the Mezzogiorno - and young persons, in particular), to promote an active employment policy in consultation with the representatives of the persons affected. It is nevertheless led to make a similar observation to that contained in its 1988 observation, namely that, from all appearances, the measures that have been taken have not up to the present time made it possible to resolve an employment situation that remains worrying. Despite the sustained growth in production, the rate of job creation was not sufficient between 1986 and 1988 to decrease unemployment, the rate of which was 12 and 12.1 per cent in 1987 and 1988, according to OECD data. There continued to be considerable differences between: regions (the South had an unemployment rate of 19.2 per cent in 1987, as compared with 8.4 per cent in the industrialised regions in the North and the centre of the country); age groups (with a national unemployment rate of 35.6 per cent of the 14-25 year-olds and of 53.1 per cent in the South for the same group); and sex (8.1 per cent of the active male population was unemployed in 1987 as compared with 18.7 per cent of women). The Committee hopes that the Government will strengthen the measures to promote the objectives of the Convention as set out in Article 1, and will report the particular difficulties encountered in achieving these objectives and the extent to which they have been overcome. It would be grateful if the Government would continue to supply information on labour market policies, and particularly on measures intended to balance the supply and demand of labour at the occupational and geographical levels, including measures to adjust the workforce to structural changes, and measures intended to meet the needs of particular categories of workers. It also hopes that the next report will be supplemented by information on overall and sectoral development policies, including policies and measures for balanced regional development, and on the procedures adopted to ensure that the effects on employment of measures taken to promote economic development or other economic and social objectives receive due consideration (Article 2). Finally, the Committee would be grateful if the Government would supply full supplementary information providing details on the scope and outcome of consultations concerning employment policies with representatives of the persons affected by the measures that are to be taken (Article 3).

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1. The Committee notes the information supplied by the Government in its report for the period ending 30 June 1988. The employment promotion policy follows two main directions: greater flexibility in the operation of the labour market and broader functions and responsibilities for the employment services. The measures taken by the Government are therefore intended to facilitate access to the labour market and to strengthen the structures for the integration of workers, and in particular young persons and women seeking their first job. The Government has supplied information in its report, in reply to the Committee's previous comments, on the impact of the programmes that have been adopted in terms of the persons affected.

2. More precisely, within the context of measures to increase the flexibility of the labour market, various standard-setting measures have been taken. Act No. 863 of 19 December 1984 introduced new formulae, such as "solidarity contracts", which are an outcome of agreements between enterprises and workers' organisations for a stable and programmed reduction in working time and remuneration, with the objective of avoiding the elimination of jobs or of creating new jobs. Act No. 863 also provides for "training and employment" contracts which make it possible to recruit young persons for a maximum period of 24 months, during which the employer undertakes to provide, in addition to the corresponding remuneration, appropriate vocational training. Between 1985 and 1987, 700,000 persons benefited under this type of contract. Act No. 863 also had the objective of developing part-time work, although the Government notes high resistance by workers to this type of employment, the relatively low importance of which in total employment is confirmed by statistics. More recently, other measures have been adopted, particularly with the objective of compensating for the accumulated inequalities of age, sex and region. Act No. 44 of 28 February 1986 is intended to promote the creation of enterprises and co-operatives by young persons in the Mezzogiorno. In June 1988, 185 projects had been approved, covering 3,281 jobs. Act No. 113 of 11 April 1986 is intended to promote the integration of young persons, women and the disabled who are the victims of long-term unemployment by encouraging their recruitment through tax relief. The report indicates that, through the "training contracts" provided for under this Act, by 31 December 1987 it had been possible to recruit 16,492 young persons. Direct subsidies were introduced under the Finance Act No. 67 of 11 March 1988 for manufacturing, handicrafts and co-operative enterprises which, between 1988 and 1992, were to take on workers with contracts for an undetermined period, while the Act also provided for the financing of local initiatives for community work to be undertaken in the Mezzogiorno.

3. Secondly, within the context of measures intended to strengthen the employment services, the Committee notes the creation of a general directorate to evaluate the labour market under Act No. 56 of 28 February 1987 respecting the organisation of the labour market, and to co-ordinate information and statistical data on employment. Regional employment commissions, set up under the regional labour and manpower offices, have been made responsible for managing the labour market, while employment agencies have been set up in areas that are particularly badly affected by unemployment.

4. Furthermore, the Committee notes the comments submitted by the General Confederation of Italian Agriculture (CONFAGRICOLTURA) and the Trade Union Association of Petrochemical Enterprises in the Public Sector (ASAP), transmitted by the Government in its report. The CONFAGRICULTURA, which states that it is aware of the gravity and increasingly acute unemployment problem, refers to the contribution that has been made by the measures taken under the collective labour agreement for the agricultural sector and emphasises the value of Act No. 56, which enables the regional employment commissions to take charge at the regional and local levels of the application of measures for the placement of the unemployed and studies on the labour market. The ASAP notes that difficulties of a bureaucratic nature have impeded the regular and satisfactory application of measures for the creation of enterprises by young persons, particularly in the South of the country (the Mezzogiorno). It also draws attention more particularly, among other matters, to the importance of training and, especially, vocational guidance.

5. The Committee notes the efforts that have been made by the Government, which is devoting an increasingly large proportion of public assistance to activities for the disadvantaged regions and groups of the population (the South - the Mezzogiorno - and young persons, in particular), to promote an active employment policy in consultation with the representatives of the persons affected. It is nevertheless led to make a similar observation to that contained in its 1988 observation, namely that, from all appearances, the measures that have been taken have not up to the present time made it possible to resolve an employment situation that remains worrying. Despite the sustained growth in production, the rate of job creation was not sufficient between 1986 and 1988 to decrease unemployment, the rate of which was 12 and 12.1 per cent in 1987 and 1988, according to OECD data. There continued to be considerable differences between: regions (the South had an unemployment rate of 19.2 per cent in 1987, as compared with 8.4 per cent in the industrialised regions in the North and the centre of the country); age groups (with a national unemployment rate of 35.6 per cent of the 14-25 year-olds and of 53.1 per cent in the South for the same group); and sex (8.1 per cent of the active male population was unemployed in 1987 as compared with 18.7 per cent of women). The Committee hopes that the Government will strengthen the measures to promote the objectives of the Convention as set out in Article 1, and will report the particular difficulties encountered in achieving these objectives and the extent to which they have been overcome. It would be grateful if the Government would continue to supply information on labour market policies, and particularly on measures intended to balance the supply and demand of labour at the occupational and geographical levels, including measures to adjust the workforce to structural changes, and measures intended to meet the needs of particular categories of workers. It also hopes that the next report will be supplemented by information on overall and sectoral development policies, including policies and measures for balanced regional development, and on the procedures adopted to ensure that the effects on employment of measures taken to promote economic development or other economic and social objectives receive due consideration (Article 2). Finally, the Committee would be grateful if the Government would supply full supplementary information providing details on the scope and outcome of consultations concerning employment policies with representatives of the persons affected by the measures that are to be taken (Article 3).

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