Meeting with Hospeem delegation Rome, 14 April 2016 1

Outline of ARAN and national collective contracts

Aran It was set up in 1993 under the public service reform. It’s a public Government Agency and plays the employer’s role for all public administrations. That is, it represents all public administrations ( both central and local) in the national collective bargaining with the Trade Unions. It provides assistance to all public administrations to carry out all the contractual clauses, through written clarifications, seminars, training courses, etc. It provides many reports and, in particular, the six- monthly report on changes in public wages compared to the private sector or other reports. 3

ARAN: organization PRESIDENT STEERING COMMITTEE Board of auditors Evaluation Unit STEERING COMMITTEE Approx. 50 employees Bargaining Service 1 Bargaining Service 2 Studies & Administration Service Central Administration Education, Universities, Research Trade unions relations Regions, Local entities, municipalities National Health Service Studies and research, Human resources, Administration, Legal Affairs, ICT 4

Main features of the public bargaining system Aran bargains at a national level with the National Trade Unions Collective contracts are defined for for each sector of public administration Before starting the negotiation, ARAN receives specific Directives from the “sector committee” - the body representing the public administration of each sector The Directives set the objectives to achieve through bargaining and also fix the resources and the guidelines to rule on working conditions The collective contracts last 3 years both for the normative and the economic conditions Collective contracts have two levels: national level and local level 5

National bargaining procedures DRAFT AGREEMENT Is sent SECTOR COMMITTEE (to check the compliance of the contract with the Directive) GOVERNMENT (to check the compliance of the contract with the law and the economic conditions) AUDIT COURT (to check the contract costs and verify that these are in line with the general economic policies). FINAL SIGNING between Aran and Trade Unions 6

The collective contract issues The collective contracts rule on most aspects of civil servant work relations from the beginning to the end of their working life in the public services and specifically: Rights and duties ( individual contracts, working hours, shifts, annual leave, sickness leave, mobility, disciplinary actions, etc.) Salaries and bonus systems, also linked to promotion and productivity Other specific working conditions 7

Public employees figures TOTAL PUBLIC SECTOR : 3,390,669 employees Managers 165.523 Non managerial personnel 2.651.361 TOTAL 2.816,884 UNDER COLLECTIVE CONTRACTS SYSTEM - Armed forces 196,802 - Fire Brigade 35,351 - Police force 328,786 - Magistrature 10,486 - Diplomatic Corps 660 - Prefecture 1,700 TOTAL 573,785 UNDER LAW REGULATION SYSTEM

Source: State Budgetary Department, 2010 Annual Income Public employees figures Source: State Budgetary Department, 2010 Annual Income 9

New National Contract Sectors Last week a new agreement was signed by ARAN and the Trade Unions about the new bargaining sectors, reduced from 11 to 4. This is a big change because it involves streamlining the bargaining process with less contracts and the standardization of the working conditions in some big sectors. The four sectors are: Central Government bodies (Ministries, Fiscal Agencies, Public Entities, etc.) Regions, Local Entities and Municipalities Education and Research ( Schools, Universities and Research Institutes) National Health Service. 10

Local collective bargaining 11

Takes place in every public body Bargaining Levels NATIONAL level (or Level 1) Takes place in ARAN Takes place in every public body LOCAL level (or Level 2) 12

Local bargaining issues Each administration bargains with local Trade Unions The local bargaining deals with: economic conditions related to work and the evaluation system (productivity, indemnity, etc.) workplace safety and security economic career requirements 13

Local bargaining procedures After bargaining, social partners sign a DRAFT AGREEMENT that is sent BOARD OF AUDITORS (to check the compliance of the local contract with the law and the national contract) FINAL SIGNING between the administration and Trade Unions 14

The impact of economic crisis on public administration 15

THE CHALLENGE Reform Reduce public spending Improve of public administration Reduce public spending and limit labour costs Improve public administrations efficiency 16

Cost cutting in offices and employees, especially managers REDUCTIONS in offices and employees, especially managers in entities (some eliminated) in specific spending (e.g. business trips, training courses, office equipment, etc.) in ceilings on top management remuneration (only for very high positions) Collective bargaining from 2010 Wages fixed at the 2015 levels FREEZE 17

The restart up of contract bargaining Collective contracts have been frozen since to 2010. This lasted until 31 December 2014, but up to now no new contracts have been bargained. The problem is that the government has allocated very few resources, even if our Constitutional Court ruled that the civil servants have the right to renew their contracts. The Trade Unions hope that for the coming year the government could assign more resources for bargaining . In this context, the new bargaining sector agreement is a preparatory step to contract renewals, because without it, ARAN couldn’t open the negotiation. 18

Better allocation of workers Many recent laws have established some measures to facilitate the mobility of employees from the administrations with surplus employees to those with vacancies. A very important reform was carried out by Law 59/2014, which has reorganized all local entities, eliminating the Provinces and setting up other entities. All Provinces personnel have been transferred to Region governments, to the new entities or other public administrations. N.B. The aim is to streamline human resources for a balanced allocation of staff among the public administrations, to improve efficiency and reduce costs. 19

Improvement in efficiency Reduction in absenteeism Improving the performance evaluation system for all employees Introduction of perfomance evaluation for public administration departments linked to service quality Introduction of transparency ( obligation to publish information on different aspects of work on the websites) Strengthening in productivity and incentive system Introduction of new system of disciplinary sanctions, with the possibility to dismiss ( for particular violations or infringements) 20

THANK YOU VERY MUCH!!! 21