Observation (CEACR) - adopted 2011, published 101st ILC session (2012)

Private Employment Agencies Convention, 1997 (No. 181) - Italy (Ratification: 2000)

Formulating labour market policy. The Committee notes the Government’s report received in November 2010, which includes comments by the Italian General Confederation of Labour (CGIL). In its 2006 observation, the Committee requested information on cooperation between the national and regional employment services and private employment agencies with regard to the placement of underprivileged workers. It also requested the Government to report on the manner in which public authorities retain final authority for formulating labour market policy. The Government indicates that in 2008, 726 private employment agencies were authorized and registered, i.e. 28 more than in 2007. Some 600 agencies performed research and selection activities and 90 were acting as temporary work agencies. Outplacement activities were performed by 20 agencies, while those acting as employment mediators were only 13. Most agencies were located in Northern regions, especially in Lombardia, while only a few operated in the South. The results of research undertaken in 2007 on the cooperation between public employment centres and other labour market operators indicate that a significant number of private employment agencies cooperated with the public employment centres between 2000 and 2007. The Government indicates that labour market services have the potential to be further developed through mutual collaboration between the public and private sectors.

The CGIL indicates that new regulations under the 2010 Finance Act expand the role played by private employment agencies. Among other measures, the 2010 Finance Act reintroduced staff leasing, that was abolished by previous legislation; temporary work agencies to supply to allowed user enterprises employees benefiting from income support mechanisms in breach of the requirements established by the collective agreements applicable to those enterprises; and introduced incentives for temporary work agencies that place workers benefiting from income support mechanisms. The CGIL expresses concern that, following the adoption of the new legislation, private employment agencies are likely to focus on two objectives, i.e. the externalization of the enterprise activity and the use of workers benefiting from income-support mechanisms, which undermine social inclusion. Considering that only part of the workforce benefits from income-support mechanisms (1.6 million workers are excluded from any benefits according to Bank of Italy statistics), the Government appears to use public resources in a way that directs private employment agencies towards activities which increase labour market segmentation. The CGIL also observes that flexibility in the labour market is not the best approach to create jobs in times of crisis, as shown by the negative employment trends during the last years. Temporary workers, including workers employed by temporary work agencies, were most affected by the crisis. Private employment agencies were used for replacing workers with permanent employment. In the CGIL’s view, providing further employment security should be reconsidered as a means to enhance economic productivity growth and achieve further social cohesion. In order to increase Italian productivity, long-term investments as well as better conditions for training and retraining workers should be promoted. Productivity and competitiveness will not be achieved by increasing the use in the workforce of individuals who are always available and easy to lay off. In its reply to the CGIL’s comments, the Government clarifies that measures contained in the 2010 Finance Act were conceived in the crisis context and thus are intended to be experimental and of a temporary nature. Placement by the private employment agencies of persons benefiting from income support mechanisms was already provided by the legislation since 1991. With regard to staff leasing, which was introduced by Legislative Decree No. 276/03, the Government indicates that the possibility of supplying employees to user enterprises under contracts of indefinite duration is only allowed in a specific list of cases identified by the Decree. It further specifies that Italia Lavoro, which is entrusted with managing the active labour market measures provided for by the 2010 Financial Act, operates under the authority of the Ministry of Labour and Social Protection. The Committee recalls that Convention No. 181 allows for an improved functioning of private employment agencies by recognizing their role in the well-functioning of the labour market. It also stresses the need to protect workers against abuses. As stated in the Global Jobs Pact, full and productive employment and decent work are at the heart of the crisis responses. This includes enhancing the competence and increasing resources available to public employment services so that jobseekers receive adequate support and, where they are working with private employment agencies, ensuring that quality services are provided and rights respected (paragraph 11(2)(ii) of the Global Jobs Pact). The matters raised by the CGIL reflect concern that fair treatment for agency workers is not ensured with regard to their working and employment conditions. The Committee therefore invites the Government to provide a report indicating how the measures adopted under the 2010 Financial Act and subsequent legislation have ensured adequate protection for workers in temporary work agencies working for user enterprises (Articles 11 and 12 of the Convention). It also invites the Government to provide information demonstrating that the views of the social partners have been taken into account concerning the measures taken to promote cooperation between public employment centres and private employment agencies (Article 13). The Government is also requested to indicate the number of workers covered by the measures giving effect to the Convention (specifying the type and duration of their employment arrangements), and the number and nature of infringements reported in relation to the activities of private employment agencies (Articles 10 and 14 and Part V of the report form).

[The Government is requested to reply in detail to the present comments in 2013.]