Individual Case (CAS) - Discussion: 1991, Publication: 78th ILC session (1991)

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

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.