From: Comitato Aziendale Europeo e Relazioni Internazionali;
Politica aziendale e risultati economici;
Documents in English
5th IWIS Conference
Roma, May 21-25
5th IWIS Conference Roma, May 21-25, 1991
Country Presentation
ITALY
1) POLITICAL AND ECONOMICAL SITUATION
In last two years the Italian Government has been formed by
Christian Democrats, Socialists and Liberals.
The Prime Minister has been the Christian Democrat Giulio An-
dreotti.
In April a crisis occurred, but in the end a new Government
will be formed by the same coalition of political parties and
with the same Prime Minister.
In the last years the political atmosphere is quite oriented in
to transforming the public companies into private ones and wea-
kening the Welfare State approach.
One of the main reasons for this is that private companies have
been strongly reorganised in these years, with good results for
the companies themselves and for the stockholders.
On the contrary,the Public Sector suffers of many malfunctions,
great delays and considerable inefficiency. The Private has be-
come the model to which the Public Sector refers: in Italy the
British model by Margaret Thachter has survived to its mother‚‚
In 1990 the members of the unions were 10,047,110 :
5,147,110 (51.23%) in CGIL
3,500,000 (34.83%) in CISL
1,400,000 (13.93%) in UIL
The unemployed people, about 3 millions, represent 13% of the
working population (24 million people)and they are concentra-
ted ,for the most part, in southern Italy (in northern Italy
the percentage of unemployment is 4%).
A significant part of the unemployment (50%) is represented by
young people looking for their first work activity.
The inflation rate is about 7%.
The purchasing power of wages and salaries has increased in the
Public Sector, and it has rather decreased in the Private Sec-
tor, especially in the industrial one.
The last Metalmechanical workers contract, which has been rene-
wed in 1990 and which also applies to all IBM workers, has not
been able to satisfy wages demands of the workers, also because
of the productivity in the industrial area that has enormously
increased during last years.
2) IBM IN ITALY IN 1990
In September 1990 IBM ITALIA SPA past away because of its mer-
ging in IBM S.E.M.E.A. (South Europe Middle East Africa) that
was just born in June 1990; as far as this event is concerned,
we shall speak about in the specific meeting session.
At the present moment we have not yet the results achieve by
IBM in 1990; what we can show, here following, are the results
year end 1989:
REVENUE total 5810 million US $
from Italy 3373 "
from export 2437 "
PROFIT 464 "
ROYALTIES
INVESTMENTS 395 "
The mean inflation rate in Italy in 1990 was about 6.0%
At the end of 1990 14802 people were working in IBM Italy, of
which 3353 in the production plants (in Vimercate, near Milan,
and in Santa Palomba, near Rome). There were 375 employees wor-
king in the Software Laboratory in Rome and 15 employees were
working in the Scientific Centres in Pisa. During 1990 380 peo-
ple resigned, and 954 people were employed. The women represen
ted 23% of the workers.
At the end of 1990 about 300 people were working with a part
time contract and the most part of them are women.
As far as personnel expenses were concerned,IBM in Italy spent
the following sums during 1989 :
Wages and salaries 910 million US $
Integrative Pension Plan 8 "
Accident Insurance Plan 5 "
Medical Insurance Plan 4 "
Cafeteria "
Special awards & Contests "
About Integrative Pension Plan in 1990 IBM spent about 10 mil-
lion US $ and, about Accident Insurance Plan, 4 million Us $.
As far as the plants were concerned, the production had an
increase of 16% on 1988.
3) UNION ACTIVITY IN IBM ITALY
As inside of IBM Italy the trend towards a more rigorous restri
ction of expenses goes on, the standards are decreasing in al-
most every department.
The attention of the Company, and the distribution of the merit
salary, is quite focused on managers and salesmen : between the
other workers the salary increases are less consistent, more
delayed and concerning fewer employees than years ago.
In October 1989 IBM Unions signed an agreement with the company
after a hard struggle started on may the 3rd 1989 with the pre-
sentation of the platform of demands.
The most significant conquests are the following:
1) SALARY : institution of a new production bonus which is
related to the economic results of the company
and is based on individual wage; a minimum value
of this production bonus is guaranteed anyway;
the increase of individual wage is about 6.5%;
2) WORKING HOURS: a) the possibility of being in part time for
a fixed period (e.g. 2 years) (unlimited
part time is confirmed);
b) the possibility of temporary retirements
for a maximum period of 1 year not payed;
3) TRANSFERS : introduction of an allowance of 10 US $ per
night in addition to the refund of all ex-
penses, as an acknowledgement of the uneasi-
ness of staying far from home
5) INFORMATION : a) about significant changes and reorganiza-
tion before they take place
b) about education, with data referred to ti-
pology of courses, number of employees in-
volved and number of student days;
As far as the health of the unions inside of IBM Italy is con-
cerned, the situation is not particularly brilliant.
The union members are about 1200 (9.6% of the workers) and the
union executives not more than 65 .
Though more and more IBMers trust the unionists and approve
their strategy, decisions and behaviour, on the other hand they
are not much interested in active participation and involve-
ment. It is difficult to have new union executives and to be
present in locations (particularly in the branch offices) where
we are missing.
4) EMPLOYMENT
In I.B.M. Italy there are 14802 workers that operate in many
towns and countries; they are concentrated in the plants of Vi-
mercate (near Milan) and Santa Palomba (near Roma) where opera-
te 3353 workers; in Milan where operate about 5000 workers and
Rome where operate about 2000. The following table shows the
evolution of IBM population in Italy since 1979,and the plot
shows the distribution between manufacturing and no-manufactu-
ring workers.
* Year * Total * No * Manufact. * % Manuf*
* * Workers * Manufact. * Workers * Workers*
* * * Workers * * on Tot.*
***************************************************************
* 1979 * 11097 * 8043 * 3054 * 27.52 *
* 1980 * 11722 * 8458 * 3264 * 27.84 *
* 1981 * 12347 * 8966 * 3381 * 27.38 *
* 1982 * 12645 * 9014 * 3631 * 28.71 *
* 1983 * 12649 * 8948 * 3701 * 29.25 *
* 1984 * 12690 * 9051 * 3639 * 28.67 *
* 1985 * 13236 * 9532 * 3704 * 27.98 *
* 1986 * 13488 * 9841 * 3647 * 27.03 *
* 1987 * 13565 * 9957 * 3608 * 26.59 *
* 1988 * 13809 * 10306 * 3503 * 25.36 *
* 1989 * 14228 * 10918 * 3310 * 23.26 *
* 1990 * 14802 * 11449 * 3353 * 22.65 *
***************************************************************
From this distribution we can immediately perceive that manu-
facturing workers reached their maximum in 1983 (29%) and that,
in the years after, the trend become negative down to the 22%
in 1990. The situation of manufacturing on over the world is
very, very bad, taking also into account that many plants have
closed in U.S.A.,in Netherlands and in France.Italian Unionists
think that it is necessary to focus the attention on manufactu-
ring in IBM and especially on the employment in the plants IBM
Italy workers, like Italian metalmechanicals workers, are divi-
ded in 7 categories according to the type of activity they car-
ry out. Workmen cannot be over the fifth category and employees
can be over the fifth category in the case of high skill.
Now I.B.M. Italy situation is the following:
WORKMEN EMPLOYEES TOP MANAGERS
3.91% 82.09% 14.00%
If we look the percentages of Exempt and Not Exempt workers,
the situation is the following:
NOT EXEMPT EXEMPT
27.98% 72.02%
Women are about 23% of total workers.
There is also people that work "part-time"; their working hours
are 20 divided in 4 hours in 5 days per week.
Now in I.B.M. there are 298 workers on part-time contracts (2%
of total workers) and they are principally women. This is no-
manufacturing part-time situation:
categories * WOMEN * MEN * TOTAL
*************************************************************
4 * 13 * 1 * 14
* * *
5 * 140 * 4 * 144
* * *
6 * 45 * 0 * 45
*************************************************************
TOTAL * 198 * 5 * 203
*************************************************************
All cases of part-time contracts coming from full-time ones (40
hours divided in five days per week).
The unique exception is that of 20 hours a week part-time divi-
ded in 3 days (Thursday, Friday and Saturday); in this case we
have new hired people,their type of activity is C.E. Installa-
tion and, now, they are only 7 men.
In addition IBM in Italy use temporary contracts formally devo-
ted to professional education training for a maximum period of
2 years. This labour condition is a consequence of an agreement
between the National Union and National Employers Associations
which provide that, two years passed,Employers may confirm or
not this temporary contracts; these contracts have many fiscal
facility from Government.
At present workers with temporary contracts are 298.
Wages in I.B.M. is composed by two parts:
- salary determined by agreement between Metalmechanical Unions
and National Employers Associations and also between IBM Uni-
on and IBM Italy;
- merit salary completely controlled by IBM.
Merit salary accounts, in the average, for 30% of total wages.
About merit salary let us say that the trend is quite negative;
IBM in Italy continue to reduce salary budget and so the time
between merit salary increases is large and the increases are
focused on Sales Men and managers.
IBM in Italy has a "must": reduce and reduce the costs.
The Company realise this reducing wages, employees number and
allocations.
5) WORKING CONDITIONS
Metalmechanicals National Contract determined working condi-
tions.
Working hours are 40 divided in 5 days per week (8 hours per
day) for all workers except part-time workers (20 hours) and
top management.
Overtime work is allowed but cannot exceed 150 hours per year
and it is not allowed on Sunday with some exceptions stated by
law (like in case of public services) or by I.B.M. Union agree-
ments (like in case of C.E.).
IBM Union must be informed in advance and afterwards but,often,
the Company gives only consolidated information about overtime
hours.
We really control overtime only in the not exempt area, because
they must register on a card initial and final working hours;
effectively IBM in Italy gives consolidated information about
overtime hours just for not exempt workers and declares formal-
ly not to ask overtime to exempt workers,though the real situa-
tion is wildly different.
PERCENTAGE OVERTIME INCREASE SALARY
*************************************************
OVERTIME UP TO 8 HOURS IN A WEEK * 45% *
OVERTIME SINCE 9th HOUR IN A WEEK * 35% *
*************************************************
As far as shift is concerned, working hours are 37.5 and, after
the realisation of an agreement between IBM Union and IBM Ita-
ly, percentage increase is 12% for day shift work and, for the
case of night shift work (after 7 p.m.), it must added 35 per-
centage increase.
There are finally 3 important agreements about night overtime,
Sunday overtime and Saturday overtime:
1 - night overtime between 10 p.m. and 7 p.m. percentage salary
increase is 165% and the workers must have not paid absence
for so many hours as overtime hours;
2 - Sunday work is allowed in C.E. area at this conditions:
daily hours ----------------> 65% percentage increase
night hours ----------------> 80% percentage increase
planning activity ----------> 3 hours bonus
not planning activity ------> 6 hours bonus;
Sunday C.E. workers must have paid absence for an half day
if working hours are since 4,one day if working hours are
up to 8 and so on;
3 - Saturday work has 65% salary increase and the workers must
have a paid absence for half hours than the hours they wor-
ked; these hours of paid absence can be added and used all
together in 3 months starting Saturday work.
In the following plots the evolution of overtime for not exempt
in the last years in Milano, Segrate e Basiano:
YEAR* TOT OVT. * NIGHT OVT * SUNDAY C.E.
* * made absence diff. * made absence
*************************************************************
'80 * 103855.50 * 3367.05 2472.60 - 895.05 *
'81 * 122231.25 * 3404.75 2549.33 - 855.42 *
'82 * 118692.00 * 3381.21 2871.45 - 509.80 *
'83 * 114815.50 * 4249.75 2818.83 -1430.92 *
'84 * 112288.00 * 3369.25 2879.53 - 489.72 *
'85 * 116872.00 * 2877.89 2271.89 - 606.00 * 404.75 424.00
'86 * 113852.25 * 2271.79 2132.25 - 139.44 * 752.50 880.00
'87 * 108104.10 * 2503.25 2104.88 - 398.37 * 1434.00 1740.00
'88 * 96725.25 * 2330.50 2029.47 - 301.03 * 1178.00 1452.00
'89 * 97752.50 * 2915.55 2449.34 - 466.21 * 1880.00 2068.00
'90 * 65140.00 * 2440.00 2063.72 - 176.28 * 1474.50 1660.00
*************************************************************
On 1990 the data are up to the end of September because, at the
present, we have not yet year end situation.
And now any diagrams about night overtime and not paid absence
in Milan, Segrate and Basiano:
The situation of working hours is better than years ago becau-
se, especially thanks to the agreements between IBM Union and
the Company, real working hours are about 40 and,from Union po-
int of view, this is a great satisfaction.
This is the true for all not exempt workers; as far as exempt
workers is concerned, we can only estimate their working hours
because they just sign the presence and do not register initial
and final time.
To conclude about working hours subject we want to speak about
agreements on the occasion of collective transfers. The most im
portant was in 1975 from Milan to Segrate (12 km. from each o-
ther): IBM Union stipulated an agreement with I.B.M. Italy that
provides a reduction of one hour an and half of working hours
and a reduction of the lunch interval from 60 to 45 minutes.
This agreement was extended also to Rome-EUR where working
hours have a weekly reduction of one hour and 15 minutes and,
later,to Basiano (25 km. from Milan) where the reduction is the
same of Segrate.
Health has always been a very important subject for Unions and
for IBM Union.
During last years we paid much attention to the problems of wor
kers that use Video Display Terminals.
First there was a consultation of the workers on defining de-
mands and this has been done by means of questionnaire and mee-
meetings.
After a phase of struggle we reached that, every two years,an
ophthalmology and ophthalmologist equip is at worker disposal
in IBM locations for visits; when the diagnosis is that special
lenses are necessary for using Video Display Terminal, IBM must
refund all expenses for the new glasses.
Talking about health, we would also like to recall that an agre
ement between IBM Union and the Company provided a Medical Insu
rance Fund used to integrate Public Health System (to which IBM
must contribute) and that, on the consequence of Italian laws,
employers must hire a certain percentage of handicapped people.
6) LIBERTIES
National Union Rights:
workers meetings :10 hours per year, paid, during wor
king hours and with no limit out of
working hours;
in any case the employer must provi
de the room for meeting;
Union bulletin boards :at least one board for each loca-
tion;
Union offices :if there are more than 200 workers
in a location, the employer must
provide an office for the Union ac-
tivity;
if the workers are less than 200
the room must be provided tempora-
rely by request;
paid leaves :for Union executives 1 day per mon-
th; not paid leaves can reach 8
days per year;
check off :that is how all Union Members pay
their contributions;
transfer of Union executives:it cannot take place if the Union
does not agree.
IBM Union rights.
Before 1969, the Union representatives in the company were ap-
pointed by the three National Unions CGIL, CISL and UIL. After
1969 in every location the "Consigli di Fabbrica" appear and
they are elected by all workers, member of not of the Unions.
The biggest "Consigli di Fabbrica" are in Milan with 60 branch
executives, Vimercate with 50, Rome with 30 and in Santa Palom-
ba with 9; in the small locations there may be at least 3 bran-
ch executives.
The maximum numbers of hours of paid leave for branch executi-
ves in order to accomplish their mission is annually:
10500 hours for Milan
8500 hours for Vimercate
3500 hours for Rome
3000 hours for Santa Palomba
6500 hours for other locations
Every single branch executive cannot use more than 24 hours of
paid leave per month, except in case of Union courses,seminars,
meetings, etc.
There is also a National Committee composed by members elected
by each "Consiglio di Fabbrica", in proportion to the number of
workers they represent.
Any times IBM Italy wants to speak to or bargain with the Na-
tional Committee and, if it is available and advisable,all ex-
penses to convoke the members in Milan (where meetings with IBM
take place) are paid by the company.
On April the 23rd 1991 an agreement with IBM stated that the
Company will pay all expenses about 6 members that participate
at 4 meeting per year; these members can use 2 days for each of
these 4 meetings.
Individual rights.
The great part of this rights are provided by a very important
law:"STATUTO DEI DIRITTI DEI LAVORATORI" (Workers Rights State-
ment).
Also on the consequence of this law any kind of investigations,
in the engagement phase too, on political, religion and Trade
Unions opinions of workers is prohibited; there is complete fre
edom to express one's own opinions at work; it is prohibited to
have a remote control of the workers activity (for example by
installing cameras in the work places or by using individual u-
sers to access areas and data base); dismissal can take place
only for a correct reason.
Any right are coming from negotiate and agreement between IBM
Unions and the Company.
About transfers: agreement on June '74 stated that the worker
must agree with I.B.M. on the transfer,otherwise the transfer
cannot be done. About badge areas: agreement of 1983 provided
that the definition of these areas must be negotiated with IBM
Union and IBM cannot use personal badges but must use only gro-
up badges.
About data bases access: the agreement states that personal u-
sers cannot be used without negotiated with Unions; the discuss
with company about this question has closed on April the 23rd
1991; about this agreement we want to give to all IWIS members
a specific presentation.