1. Some Toughts on the Global Economic Crisis and the Strategy of the Trade Unions KCTU International Symposium on Trade Union Strategy to Global Economic Crisis May 27°th - 28th, Seoul, South Korea Stefano Palmieri (IRES-CGIL) s.palmieri@ires.it

2. The economic and financial crisis and the Italian structural problems The economic and financial crisis and the Italian structural problems Global responses to a Global crisis Global responses to a Global crisis The CGIL and ETUC responses to the crisis The CGIL and ETUC responses to the crisis IRES – CGIL INTERNATIONAL DEPARTMENT 2

3. 1. WHAT’S HAPPENED IN ITALY?

4. The fragile Italian framework The economic downturn hitting the Italian economic system The economic downturn hitting the Italian economic system The growth in non standard and precarious employment The growth in non standard and precarious employment The North-South gap The North-South gap The gender gap The gender gap The undeclared work phenomenon The undeclared work phenomenon The immigrant workers The immigrant workers The problem of safety in the workplaces The problem of safety in the workplaces The increase in the income inequalities The increase in the income inequalities IRES – CGIL INTERNATIONAL DEPARTMENT 4

5. The economic downturn hitting the Italian economic system 2007200820092010 GDP1.6-4.40.1 Private consumption1.2-0.9-1.70.2 Gross fixed capital formation 2.0-3.0-12.3-0.6 Public consumption1.00.60.70.6 Exports4.6-3.7-15.60.1 Imports3.8-4.5-12.80.2 Employment (% var.)1.0-0.1-3.3-0.6 Unemployment rate6.16.88.89.4 General government balance -1.5-2.7-4.5-4.8 General government gross debt 103.5105.8113.0116.1 5 Source: European Commission, Spring forecasts 2009.

6. THE GROWTH IN NON STANDARD AND PRECARIOUS EMPLOYMENT IRES – CGIL INTERNATIONAL DEPARTMENT 6

7. From unemployment to temporary work Unemployment rate Unemployment rate 1997: 11% 2000: 10% 2007: 6.1% The duration of unemployment The duration of unemployment – 80s75% of unemployed people more than 1 year – 200735% of unemployed people more than 1 year IRES – CGIL INTERNATIONAL DEPARTMENT 7

8. The employees in Italy 2007 8 Source: ISTAT 2008.

9. The outsider 9 Source: IRES-CGIL 2009.

10. Risks and social sustainibility Discontinuity of work Discontinuity of work Few contractual guarantees and workers rights (risks and work hours like indipendent workers with income and work conditions of employees) Few contractual guarantees and workers rights (risks and work hours like indipendent workers with income and work conditions of employees) Low income Low income Future retirement income low Future retirement income low Is no longer guaranteed the process of training of the worker Is no longer guaranteed the process of training of the worker IRES – CGIL INTERNATIONAL DEPARTMENT 10

11. Work flexible trap / springboard "Non-standard employment can be a bus from which, however, must go down at the next stop as soon as possible“ "Non-standard employment can be a bus from which, however, must go down at the next stop as soon as possible“ contractual conditions with protection regimes too diversified. contractual conditions with protection regimes too diversified. The problem: the uninterrupted chain of atypical and temporary work, which produces uncertainty, entrapment, inequality, social exclusion The problem: the uninterrupted chain of atypical and temporary work, which produces uncertainty, entrapment, inequality, social exclusion IRES – CGIL INTERNATIONAL DEPARTMENT 11

12. The employment prospects the Italian model is more and more temporary employment-oriented; the Italian model is more and more temporary employment-oriented; from 1993 to 2007 the weight of the temporary employment has grown more than 30% from 1993 to 2007 the weight of the temporary employment has grown more than 30% the area of instability between 2004 to 2007 has increased by 400 thousand units (+12.4%); grew the most adult class (45-55 years): from 11, 8% to 13.5% the area of instability between 2004 to 2007 has increased by 400 thousand units (+12.4%); grew the most adult class (45-55 years): from 11, 8% to 13.5% 77% of the unemployed between 15 and 34 years is out of work for no more than a year, but 59% among the over 45 years old. Furthermore 17% of over 45 y.o. remain jobless for more than 36 months 77% of the unemployed between 15 and 34 years is out of work for no more than a year, but 59% among the over 45 years old. Furthermore 17% of over 45 y.o. remain jobless for more than 36 months IRES – CGIL INTERNATIONAL DEPARTMENT 12

13. The dynamic economy The area of employment instability will increase as a result of the crisis: The area of employment instability will increase as a result of the crisis: There will be a risk of more precarious and less stabilization process There will be a risk of more precarious and less stabilization process Possible enlargement of the non-employed adult Possible enlargement of the non-employed adult Increasing duration of unemployment Increasing duration of unemployment IRES – CGIL INTERNATIONAL DEPARTMENT 13

14. Inadequacy of the social protections system for precarious employment Residual social spending aimed at supporting the unemployed: unemployed less than 3 to 10 are covered by social security; Residual social spending aimed at supporting the unemployed: unemployed less than 3 to 10 are covered by social security; Inadequate insurance for discontinuous careers; Inadequate insurance for discontinuous careers; Even among those who are included in the range of beneficiaries are substantial inequalities: term performance and rate of replacement will vary by: - type of contract - age of the beneficiary - industry - company size - territory Even among those who are included in the range of beneficiaries are substantial inequalities: term performance and rate of replacement will vary by: - type of contract - age of the beneficiary - industry - company size - territory IRES – CGIL INTERNATIONAL DEPARTMENT 14

15. New guidelines for employment policies Integrated combination of flexibility of work, income security and support to employability in the labor market Integrated combination of flexibility of work, income security and support to employability in the labor market Guidance and support to businesses to use more stable forms: a positive effect on labor demand (productivity) and on labor supply (conditions of workers) Guidance and support to businesses to use more stable forms: a positive effect on labor demand (productivity) and on labor supply (conditions of workers) IRES – CGIL INTERNATIONAL DEPARTMENT 15

16. New priorities Simplification and rationalization of legislation against the "fragmentation" of the rights of workers Simplification and rationalization of legislation against the "fragmentation" of the rights of workers New protections for new labor market: towards a system of social shock absorbers more universalistic and appropriate for discontinuous employment patterns New protections for new labor market: towards a system of social shock absorbers more universalistic and appropriate for discontinuous employment patterns Encourage forms of employment as a factor in efficiency and business innovation Encourage forms of employment as a factor in efficiency and business innovation Promotion of functional flexibility in domestic markets: valorisation of work Promotion of functional flexibility in domestic markets: valorisation of work IRES – CGIL INTERNATIONAL DEPARTMENT 16

17. THE NORTH/SOUTH GAP IN THE LABOUR MARKET IRES – CGIL INTERNATIONAL DEPARTMENT 17

18. 18 2007 EMPLOYMENT RATE: 58,5% NORTH-WEST: 66,0% NORTH-EAST: 67,6% CENTRE: 62,3% SOUTH: 46,5% 2007 UNEMPLOYMENT RATE: 6,1% NORTH-WEST: 3,8% NORTH-EAST: 3,1% CENTRE: 5,3% SOUTH: 11,0% THE NORTH/SOUTH GAP Source: ISTAT 2008.

19. THE GENDER GAP IN THE LABOUR MARKET IRES – CGIL INTERNATIONAL DEPARTMENT 19

20. EMPLOYMENT RATE MALE: 70,7% NORTH-WEST:75,4% NORTH-EAST:77,5% CENTRE:73,0% SOUTH:62,2% FEMALE: 46,6% NORTH-WEST:56,4% NORTH-EAST:57,5% CENTRE:51,8% SOUTH:31,1% UNEMPLOYMENT RATE MALE:4,9% NORTH-WEST:3,0% NORTH-EAST:2,1% CENTRE:3,9% SOUTH:8,9% FEMALE: 7,9% NORTH-WEST:4,9% NORTH-EAST:4,5% CENTRE:7,2% SOUTH:14,9 THE GENDER GAP IN THE LABOUR MARKET Source: ISTAT 2008.

21. THE UNDECLARED WORKS IN ITALY IRES – CGIL INTERNATIONAL DEPARTMENT 21

22. Undeclared work in the EU 22 Source: EC 2007.

23. Undeclared work In Italy are in this situation of irregularity about 2.7 million full-time workers In Italy are in this situation of irregularity about 2.7 million full-time workers Center-North: 1 worker out10; Center-North: 1 worker out10; South: 1 worker out of 4 South: 1 worker out of 4 The sectors where the incidence is higher in Agriculture and Services The sectors where the incidence is higher in Agriculture and Services Inside the Services, there is a sharp distinction between traditional services (the rate is around 49% in domestic services and 35% in tourism) and advanced services where the rate fell down to 9.5% Inside the Services, there is a sharp distinction between traditional services (the rate is around 49% in domestic services and 35% in tourism) and advanced services where the rate fell down to 9.5% IRES – CGIL INTERNATIONAL DEPARTMENT 23

24. Fight to undeclared works For the state to recover tax evasion For the state to recover tax evasion for the business system that exceeds the bad competition and research competitiveness of high quality for the business system that exceeds the bad competition and research competitiveness of high quality for employees in this chain is the weakest link and that sometimes surrendered to his dignity for fear of losing job for employees in this chain is the weakest link and that sometimes surrendered to his dignity for fear of losing job In the South area of Italy the management of this form of employment is given to organized crime In the South area of Italy the management of this form of employment is given to organized crime IRES – CGIL INTERNATIONAL DEPARTMENT 24