THE PROPOSALS OF WORKAGENCIES FOR ITALY’SRESTART

#ValuableWork

INDEX

Premise

Proposal 1 - Flexicurity

Proposal 2 - Training Promoting Access Work

Proposal 3 - An Open Badge for transitions

Proposal 4 - Benefits for Business Reorganization

Proposal 5 - Safety at work

Proposal 6 - Making PA more Flexible and Digital

Proposal 7 - Digital Literacy

Proposal 8 - A Plan against Undeclared Work

1

4

6

8

12

15

17

19

21

Premise The seriousness of the impact ofCOVID-19 is there for all to see, as arethe many recommendations andpropositions suggested for a ‘safe’restart of the economy and work. As for this proposal, it has been putforward by Work Agencies and aimsneither to be a mere formalcontribution nor to provide the ‘perfectformula’. The ambitious goal of thisproposal is to share the wealth ofexpertise developed by Italy’semployment agency industry in morethan two decades, paving the way forthose measures which are deemednecessary or advisable. This has been an unprecedented crisis,with effects on the economy which arestill unknown, as they are mostly linkedto the duration of the pandemic. Thisstate of affairs calls for considerableforward-planning, which should reflectcurrent reality. We must start again,fully aware of the many constraints andissues that – even prior to the crisis –affected work and production. In thissense, a new and sustainable futureshould be built through a fresh ‘way ofthinking’.

PREMISE

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Specifically, together with institutions,social bodies and employers – we mustbe able to cushion as much as possiblethe social costs resulting from theunavoidable and progressive erosion ofold sectors, concurrently supportingthe rapid rise of new ones. We will have to support businesses’value creation and people’s earningscapacity, ensuring the latter decentjobs and a network of employmentservices that is finally able to providefull assistance in relation to trainingand occupational transitions. As a country, we are called on to attendto a significant number of people,supporting them in a major process,which entails re-training and skillsupdating (i.e. up-skilling and re-skilling). Besides filling the digital divide, whichin this crisis has reared its ugly head,this process is also intended to meetand anticipate the demand for newoccupations.

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A macroeconomic frameworkmarked by shrinking publicresources, along with the inability toimplement targeted support policiesin the long term (so-called helicoptermoney), call for a thorough review ofthe relationship between institutions– operating at local, national, andEuropean level – and civil society,through a perspective whichconsiders modern forms ofsubsidiarity. In the labour marketcontext, this offers anunprecedented opportunity toreconsider the public-privaterelationship and to review thecurrent system of rules. This movewould help to overcome merelyideological contrapositions, and toescape the ephemeral butcomforting illusion that laying downrules might be sufficient to fill clearlystructural divides. Increasing in-work poverty andinequalities in Italy – which alsoinclude long-standing gender gaps;the lack of quality jobs; the massive

and unacceptable presence ofundeclared work; inadequate forms ofwelfare which further exacerbate thedivide between protected andunprotected individuals; high rates ofillegal work; stifling bureaucracy. Theseare old phenomena, which now riskexacerbating and call for a new,inclusive and solid ‘Alliance’ to build asocially and economically sustainablelabour market. Reality is stubborn, as someone usedto say, and the challenge we face isunprecedented. However, it isprecisely this the raison d'êtreleading to this proposal.

PREMESSAPREMISE

Employment contraction 2020: -2.1% ("Documento di Economia e Finanza" - DEF). Average unemployment rate 2020: 11.6% (DEF).Reduction of employed workers in the labour market: -500 thousand (in addition to approximately 2.5million reported unemployed workers in 2019, and approximately 2.8 million potential ones) (DEF).Employment reduction in terms of full-time equivalent working units: -6.5% (DEF). Reduction of employment expressed in hours worked: -6.3% (DEF).Unemployment rate from 10% to 11.8% (European Commission).

The impact of the COVID-19 Emergency in Italy

Sectors at risk: a European analysis At European level, the estimated impact of the emergency is more serious if one jointly considers thehospitality, catering and coffee sectors, as well as the wholesale and retail, construction andmanufacturing sectors. In these industries, the unemployment risk ranges from 75% in the catering andhospitality sector, to 45% in commerce, up to just over 20% in manufacturing. The incidence of the jobswhich are likely to be lost is also high in the performing arts and entertainment sector, with 50% of jobswhich face this risk, as well as among those employed in other sectors (including family-related services)where a third of the total number of employees are at risk of being laid off/having their working hoursreduced. (Source: Global Institute McKinsey).

PREMISE

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-9,5%REAL GDP 2020 IN ITALY (SOURCE:

EUROPEAN AND ECONOMIC FORECAST)59 MILLIONWORKERS AT RISK IN EUROPE.(SOURCE: GLOBAL INSTITUTE MCKINSEY)

Proposal 1 - Work and flexibility:safeguarding employment,promoting contracts – includingfixed-term ones – with higherprotection for the worker.

PROPOSAL 1FLEXICURITY

those ensuring decent remuneration -in compliance with legal andcontractual provisions – andsafeguarding those rightscharacterizing salaried employment.This also applies to agency work and tofixed-term employment contractsconcluded directly with the employer. Therefore, it is necessary to eliminatethe legislative limitations applying tothe use of these contractual schemes,among which are the need to specifythe reason for concluding thesecontracts and the additional costs tobe borne in case of extension. Thismove would also avoid losing thewealth of specific skills developed whenperforming activities in a given contextbecause of turnover, which in turnincreases the likelihood that manypeople take up less protectedemployment. Concurrently, an additional effort mustbe made to prevent the furtherproliferation of undeclared work,including bogus self-employment andspurious cooperatives, which are onlyset up with the purpose of payingworkers up to 20% less.

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When the most serious phase of theemergency ends, employers will take amore cautious approach, whichpresumably will translate into a massiveuse of temporary contracts, whilewaiting for demand to consolidate andbecome less volatile. Against this backdrop, there is anactual risk that unstable employmentwill increase. For economic reasons, thepossibility might also arise that therecovery phase will bring about the riseof illegal forms of employment, whichprovide workers with less protection. For this reason, the debate on flexibilityand on temporary work arrangementsmust quickly move on from anideological – and therefore simplistic –approach to a more practicalperspective, which considers real dataanalysis. Among the flexible working schemesavailable, priority should be given to

Young People and Work Agencies In Italy, the contract for the use of agency labour is mainly concluded by young people. In 2018, peopleunder 35 made up the majority of those hired with this type of contract, i.e. 51% of all those engaged inagency work (22% of the total workforce). According to the Report "The labour market: an integrated reading" young people who enter the labourmarket with a contract for the use of agency labour are more likely to move into stable employment thanthose who are offered a fixed-term contract for their first job, and than those initially engaged throughcollaborations or on on-call contracts..Contracts for the use of agency labour are widespread particularly among very young people. The share ofthose up to 24 years old employed through this working scheme – viz. 19.7% of the total number ofpeople employed through agency work – is significant if one considers that very young people account forjust 4.5% of the total number of people in employment. [1] Source: "The labour market: an integrated reading"; Ministry of Labour and Social Policies, ISTAT,INPS, INAIL and ANPAL, 2017.

PROPOSAL 1FLEXICURITY

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Accordingly, two recommendationscan be put forward: encouraging thetransition from less protectedflexible working schemes to fixed-term employment contracts and toemployment contracts concluded forthe use of agency labour, whilestepping up monitoring activities.

18,1 %THE STABILIZATION RATE FOR YOUNGPEOPLE HIRED THROUGH AGENCY WORKIS 3 TIMES HIGHER THAN THAT REPORTEDFOR WORKERS ENGAGED IN ON-CALLWORK AND COLLABORATIONS (FORFIXED-TERM CONTRACTS, THIS RATE IS13.6%) [1]

Once again, the crisis has brought tothe fore the urgency to make properuse of public resources and fundingallocated to training with a view ofaccessing the labour market. Work and its content are constantlyevolving, and so are organizationalcontexts and social settings, thusprofessional value has become workers’only distinctive trait. Due to the existing critical situation, theimpact on required skills isunprecedented. According to the OECD [2], more than13 million Italian adults (e.g. 40% of thepopulation) have poor basic (maths,reading and writing skills) and digitalskills, so they are potentially at risk ofmarginalization in the current, ever-changing labour market. In order for our economy and workersto deal with this state of affairs, training:

must be designed and planned withcompanies, delivered quickly andfocused on the provision of digitalskills. Workers, especially senior ones,need to be aware of what the marketis looking for, which activities willrequire an investment in digitizationand which production tasks shouldbe discontinued as they are nolonger worth investing in;must be organised by setting up avoucher system, which is madeavailable to the worker and can beused to purchase targeted services;must be designed so that it can beprovided face-to-face and remotely,and its effectiveness should beassessed through evaluationsystems. Financed training schemescannot be paid only based on theirmere provision.

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[2]: Competence’s Strategies OCSE, Italy, 2017.

Proposal 2 – Vocational training:public funds awarded only tothose ensuring access toemployment

PROPOSAL 2TRAINING PROMOTINGACCESS TO WORK

40%OF THE POPULATION

IN ITALY HAS POOR BASIC AND DIGITALSKILLS AND IS AT RISK OF LABOUR MARKETMARGINALISATION

the mapping of existing skills indifferent production settings, withtargeted actions in medium- andlarge-sized companies; the regular identification of theproduction sectors that reportpositive growth rates in terms oflabour and expertise; the identification of skillsmismatches, with a focus on digitalexpertise, especially for workersoperating in companies facing aslowdown;the setting up of targeted actions(e.g. skilling, re-skilling and up-skilling) in order to prevent workersfrom being phased out of the labourmarket.

Consequently, a new, comprehensivetraining project should lay down asubset of related actions, including:

An actual proposal, which is easy toimplement, does not bear anyadditional cost and might contributeto an extraordinary improvement inpublic resource allocation, shouldconsider the criteria for selecting theprojects to be financed for training. In this connection, a mechanism isneeded that allocates public fundingdepending on the results in terms ofplacements. Only those providerswho can demonstrate significantsuccess rates (e.g. 30%) in terms ofjob placement for participants totheir training schemes will haveaccess to public resources.

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Vocational Training provided by Work Agencies More than 270 thousand people are trained yearly in the agency work industry. Subsequently, atleast one third of them must be given a job opportunity, otherwise the resources used for training – allprivate ones – might be lost. In 2019, the percentage of placements at the end of training was around50%. Forma.Temp, the fund for training and income support provision targeting agency workers, manages atraining system that must respond timely to the continuous and significant changes in professional needs(i.e. skill upgrading) and to companies’ new training requirements. During the first half of 2019, thetraining financed by Forma.Temp involved some 135 thousand agency workers, amounting to 119million euros..During the COVID-19 emergency, Forma.Temp employability initiatives addressing agency workerswere not discontinued. More than 3 thousand courses were activated remotely, involving over 26thousand workers, with training contents that were adapted to the evolving scenario.

PROPOSAL 2TRAINING PROMOTINGACCESS TO WORK

We are therefore dealing with"transitional labour markets", that is,changing contexts in which people willhave to be supported in their careerthrough different phases and passages(transitions) not only between jobs, butbetween statuses (i.e. occupations,professions, care and training provision)which may occur consecutively orsimultaneously. Preserving one’s job is now an oldconcept and has been replaced by theobvious need to protect "workers",properly assisting them in developingexpertise. This state of affairs calls for a reflectionon employment services, which shouldbe conceived considering the point ofview of both people and employers,thus taking account of serviceaccessibility, skills needed, timeframesand results. It will be necessary to comeup with a viable solution for those menor women who intend to engage in aprofessional path featuring timeflexibility and little physical presence inthe workplace, for reasons related tofamily or caring responsibilities.

Well before the crisis, the global labourmarket had shown a progressivetendency to develop complex and non-linear professional paths, made up ofemployment spells and periods inwhich income support and fundedtraining had to be provided. In the context of the macro-changescurrently underway, it is thereforenecessary to focus on people's life,especially on those transition phaseswhich, if not properly supported, mightgive rise to individual vulnerability,market inefficiencies and social costs. School-to-work transition, work-lifebalance, the management of a longand active life and gradual retirementare the main phases to consider.

Proposal 3 - Placing the individualcentre-stage in occupationaltransitions: creating an openbadge to trace training andprovide targeted and flexibleemployment services, which arefunded according to resultsachieved.

PROPOSAL 3AN OPEN BADGEFOR TRANSITIONS

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result-based activities (servicesreimbursed depending on the numberof people who manage to findemployment). Particularly vulnerable groups ofbeneficiaries need continuous andspecific services. Especially in today’sever-changing context, retrainingworkers who are phased out of thelabour market will become increasinglyimportant, through structured andtargeted services. The absence of recognized andconsolidated services confines theaction of Work Agencies to merematching, somehow belittling workers’active role in job search, which shouldalso be performed autonomously. Theacquired ability to look for a jobrepresents the first result of activepolicies and is useful in any transitionbetween jobs. Today’s challenge is to strike the rightbalance between the fair remunerationof ‘process-based activities’ and resultacknowledgment, regarding the latteras the element upholding theeffectiveness of the initiative itself.

immediately re-employing all thosewho, because of their skills or thesituation of the sector/company theyoperate in, can quickly find anotherjob, following a careful analysis ofreal job opportunities through anindividual activation project; supporting, even through extensiveretraining, the most vulnerableworkers, to provide them with thetools that enhance theiremployability, reviving their ability tomake themselves more marketablein the labour market.

Designing services starting from thebeneficiary's point of view entailsmoving the focus from administrativeprocedures to the occupationaloutcomes which have been set, withina timeframe that is useful to companiesand workers, without losing anyopportunity. A comprehensive "EmploymentServices Programme" should thus beimplemented, based on tworecommendations:

Evidently, good employment policiesconsist of process-based activities (e.g.guidance and training; servicesreimbursed for the hours worked) and

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PROPOSAL 3AN OPEN BADGEFOR TRANSITIONS

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PROPOSAL 3AN OPEN BADGEFOR TRANSITIONS

The payment of the services offered byspecialized public and private operators(employment and Work Agencies)must be assessed mainly in terms ofthe job opportunities provided. In this context, one option to consideris the use of open badges. In additionto containing the employee's personaldata and documents necessary toaccess a job opportunity, these badgeskeep track all the (formal and informal)training they participated in, togetherwith a bonus, which can be used topurchase guidance and trainingservices. The skills gained are certified throughblockchain technology and recordedthrough the open badge. This way,people can store in one placedocumentation which can be usefulalong their professional life.

an effective response to the needs of people with high time flexibility; widespread distribution of services and their closeness to beneficiaries;more time for operators, so they could offer beneficiaries more targeted services and greater support;easier access to face-to-face services for the most vulnerable groups;the opportunity to offer assistance, so beneficiaries were supported remotely on a more continuousbasis, encouraging the autonomy needed in future occupational transitions.

help managing authorities to access analytically-tracked data to be checked any time, so theinformation produced cannot be questioned;offer users higher time flexibility, greater proximity to one’s place of residence, more regular support, asubstantial reduction of time and participation costs;reduce release times, allow for greater organizational flexibility and increase the efficiency of serviceproviders, enabling them to attend to more users;allow using tools and content that can supplement the services already provided to beneficiaries.

Remote services: Seizing the Opportunity Employment services too can enter the digital revolution and start benefitting from all the opportunitiesmade available by new interfaces, algorithms, social network data, new assistance and learning models. These months have shown that the implementation of remote services has provided:

Undoubtedly, digital instruments benefit all actors, in that they:

Obviously, those who do not have suitable tools and applications must always be ensured the opportunityto go the employment office (or to an authorized body) in person to seek support for the management ofcertain procedures. Face-to-face interaction, i.e. when the worker meets the operator to participate in talent enhancementprojects and access possible job opportunities, must be a valuable one and generate a positive experiencefor the participant.

PROPOSAL 3AN OPEN BADGEFOR TRANSITIONS

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be implemented should a pandemicrisk arise. The way paved by the Decree musttherefore be further expanded and putinto perspective. This is so because some processes willaccelerate significantly and it will benecessary not only to take steps toensure their safe implementation inthe short term, but also to promotemore structured reorganizationprocesses in the long term. Furthermore, some implications arealready well-known. The establishmentof remote work will give operatorsmore responsibilities, prompting themto engage in result-based performancewhile keeping track of their work, withall the issues which might ensue interms of privacy. A significant boost will be given tomanagement and production processautomation. Sanitization robotics isalready expanding; an example of this isits use when moving aroundcomponents in production settings soas to ensure distancing. Yet there aremany sectors which are experiencingsignificant growth. Some changes will be less apparent

Due to the pandemic, workplaces andthe relevant processes will have to bere-organised thoroughly. The "Re-launch Decree" is therefore a timelymeasure, as it makes provisions forfacilitating the purchase of equipmentand the adaptation of one’s place ofwork to new needs. The measures specifically devoted toCOVID-19 should be supplemented bypromoting the designation of a newprofessional – with the necessary skillsto manage these adaptation processesproperly – as the sole point of contactat the time of putting in placeprevention measures: “the COVIDManager”. The "COVID Manager" is the one incharge of deciding how to design thenew workplaces, organisingentrances, shifts, cafeterias, workingtimes, productivity spells, and breaks.This means managing everyday workoperations in the current recoveryphase. The COVID Manager will alsodefine flows and new processes, aswell as the policies and procedures to

Proposal 4 - Tax Credit Extensionto Professionals in order to dealwith work reorganization

PROPOSAL 4BENEFITS FOR BUSINESSREORGANIZATION

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performance of workers who will tendto naturally work by objectives, withless control but increased responsibility. In order to manage the relationshipwith collaborators, it will be necessaryto apply new leadership models in aflatter organisation, where the know-how will be distributed more evenlyand higher levels of delegation areneeded. Customer assistance may beprovided on a regular basis and data oncustomer satisfaction can be collected. Companies will be required to adoptnew ways of organizing activities andwork. Especially for small- and medium-sizedenterprises, a rethinking is thereforenecessary as far as tools, times and themethods used to assess results areconcerned, which will benefit from thesupport of specialized operators andad-hoc training.

and will occur at a deeper level.Working on digital platforms makes itpossible to transform data, informationand instructions, even those which aredifficult to find, into formalized,structured and readily availablecompany know-how. Organisations will be able to learn whileoperating and, thanks to their know-how, facilitate new staff integration, jobrotation and the professional growth oftheir human resources. The learningorganization will rely on a set of toolsenabling it to be fully implemented. Management and productionprocesses will also have to change.Making the company’s know-howavailable and easy to access enablesorganization to be based on parallelprocesses and not only on sequentialones. This will have significant effects interms of productivity, with anincreasing need for collaborationbetween managers overseeingdifferent processes.Productivity can increase in thoseservices which are no longer delayed bythe time needed to reach one’s place ofwork or customers. While the spread ofdigitization and automation willcontinue pervasively, changes willinvolve the methods for monitoring the

PROPOSAL 4BENEFITS FOR BUSINESSREORGANIZATION

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COVID MANAGER AND RE-START MANAGER

NEW PROFESSIONALS DEALING WITH THESAFE AND THE QUICK RESTART OFPRODUCTION ACTIVITIES.

PROPOSAL 4BENEFITS FOR BUSINESSREORGANIZATION

What illustrated above is in line withthe principles underlying the settingup of the voucher system for the"Innovation Manager" and furthersupplements the measures laiddown for the tools and initiativesneeded for the pandemic (“RelaunchDecree” DL no. 34 of 19 May 2020,published in Gazzetta Ufficiale no.128). Based on this, it is necessary todefine specific tax measures (e.g. taxcredit) promoting the developmentof skills and expertise for thoseprofessionals who will need to dealwith this emergency situation (the“COVID Manager”) and effectivebusiness organization (“The Re-startManager”), which also ensure that allworkers engaged in new processesreceive proper training.

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commercial contract concluded for theuse of agency labour, the agencydelegates to the user undertaking anumber of tasks (e.g. training andequipment provision). The general training provided to thosecarrying out assignments and agencyworkers is concerned with theprovision of general notions about theconcepts of damage, risks, prevention,current legislation and monitoringbodies in charge of occupationalhealth and safety. On the contrary, specific trainingconcerns "risks related to duties andpossible damage, and the consequentprevention and protection measuresand procedures in place in the sectorone operates in”. This form of trainingtargets agency workers performing anassignment and is regularly repeatedand amended, in the event of “aworsening of existing risks or theemergence of new ones”. Work Agencies are currentlysupporting companies to ensurebusiness continuity, i.e. through thecorrect application of health protocolsand by training and making availablenew professionals (the "COVIDManager").

Employee health protection is thestarting point for resuming productionactivities. In the next future, a newnormality is being envisioned, in whichphysical distancing, sanitary measures,new work organization and regularchecks will become crucial. In the agency work sector, aconsolidated set of safety regulationsare already in place wherebyprevention measures have to beensured by both the agency and theuser undertaking, based on theprinciple of effectiveness. Thesemeasures are made available to agencyworkers. According to this system, the userundertaking has to ensure thatagency workers comply with thesame safety obligations laid downfor its employees, as set forth inlegislation and collectiveagreements. Concurrently, the workagency has to inform workers aboutthe health and safety risks linked toproduction activities. Under the

Proposal 5 - Restarting safely,adopting consistentorganizational models throughproper skills

PROPOSAL 5SAFETY AT WORK

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This COVID Manager – who wouldcommence work upon re-opening ofproduction plants – is tasked withcoordinating and monitoring theimplementation of prevention andcontrol measures at the company,serving as a link between the companyand regional health authorities inrelation to occupational health andsafety. Work Agencies can provide theirexpertise and know-how to make sureemployers and workers go back towork safely. Work Agencies can also provide theircontribution to the application ofguidelines and protocols, advising

PROPOSAL 5SAFETY AT WORK

The work agency sector and the rules safeguarding workers’ health and safety One of the fundamental aspects of the contract for the use of agency labour, which must be concluded inwriting, is the indication of the possible risks in terms of health and safety workers might face andthe prevention measures which have been adopted. The number of work-related accidents affecting agency workers has decreased constantly over thepast 10 years. According to a survey carried out in the first quarter of 2019, the number of claims receivedby E.Bi.Temp concerning work-related accidents was almost 54% lower than those reported for the sameperiod in 2018. This reduction was accompanied by an increase in the number of people hired throughagency work, which affected the rate of occupational accidents. Based on INAIL’s latest data, thepercentage of accident claims out of the average monthly employment rate went from 8.4% in 2003to 2.8% in 2015. The reasons for this trend are many and can be attributed to a number of factors. The first is certainly linkedto the significant amount of training and information provided to workers.

advising on the adoption of neworganizational models and on theavailability of new professionals. On its website, Assolavoro hascreated a section dedicated to COVID-19 (www.assolavoro.eu/covid19),which can be accessed free of chargeby companies and citizens andillustrates good practicesimplemented by Work Agencies,companies and stakeholders, as wellas useful protocols and rules to dealwith the emergency.

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The prolonged lockdown has not onlyaffected business organizationalmodels. Compelled to work remotely,public-sector employees had to dealwith the technological advancesalready available to them. In this sense,some 80% of public-sector employeeswere asked to work remotely, either atnational or regional level. According to the Ministry of PublicFunction, this significant growth and itsconsequent positive effects will lead toarrange for at least 30% of theworkforce to operate remotely, evenafter the end of the lockdown. If one examines those standard tasksmaking up today’s services orpolicies, either at national or regionallevel, it is easy to notice thesignificant amount of activities andtasks which can be moved to digitalplatforms or performed remotely,

totally or in part. Radical and systemic reform isabsolutely needed. It is urgent todigitalise all administrative tasks,concurrently promoting the use of self-declaration forms. The aim is to reduce prevention andcontrol measures, making usersaccountable for their statements, sochecks can take place on a randomand ongoing basis. Furthermore, public-sector employees’massive data which are contained inpublic-sector databases should also bemade available – be them contact orpast information – finally moving onfrom long-standing cultural resistance. Finally, it is fundamental to provideadequate skills in order to master AItechnology. The relevance of cross-cutting, technical skills in the digitalfield will increase, as will the set ofdigital literacy skills necessary to workin innovative processes in thoseservices where robotics technology willbe required to understand.

Proposal 6 - PublicAdministration: digital skills,simplification and subsidiarity toovercome bureaucracy.

PROPOSAL 6MAKING PA MOREFLEXIBLE AND DIGITAL

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To sum up, what is needed is: a new“White Paper for PublicAdministration“ to facilitate theongoing mapping of skills and theidentification of those needed ineach department; a consistentframework of simplified and onlineprocedures, together with a massiverecourse to subsidiarity; a networkwithin the public sector, whichpromotes effective dialoguebetween departments and givesaccess to information to allauthorised operators concerningworkers or those looking for a job.

Big Data analytics and to operate incontexts where the Internet of Thingsprovides information on workenvironments and settings. Prior mapping (e.g. through selectionprocedures) and ongoing evaluation ofsoft skills during one’s professionalcareer should also take place in PublicAdministration, in order to fosterproductivity and reduce the risk ofbeing self-referential. Any recovery in terms ofcompetitiveness in other areas mightbe undermined if this aspect is notdealt with.

The significant growth of remote work in Italy Looking at the most structured components of labour demand, i.e. companies with at least 10 employees,ISTAT’s data for 2019 report that in such sectors as telecommunications, information technology andpublishing there was a high number of workers making use of devices and internet connections madeavailable by the employer even prior to the lockdown. The services sector is the one reporting the highest share of workers who are given the opportunity to useremote work equipment. Significantly, 30% of employees in the building sector are also provided with thisopportunity, particularly in increasingly relevant tasks, like planning and software development. Conversely, the manufacturing sector recorded on average the lowest percentage of workers operatingremotely in 2019 (19.7%). The same can be said of more traditional activities in the services sector – e.g. delivery, care, healthcare,trade, retail and catering – as here the human component still plays a key role in production and serviceprovision.

PROPOSAL 6MAKING PA MOREFLEXIBLE AND DIGITAL

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families and businesses, workers’ skillsand the country’s infrastructure – whichprevent our economic system frommaking the most of the increase in theuse of network technologies resultingfrom the lockdown and socialdistancing. The fragmentation of production indifferent sectors has produced ratherdifferent responses in relation to therecourse to remote work imposed bybusiness closures and nationwidelockdown restrictions. Some sectors were already equipped inoperational and structural terms toimplement remote work. So they usedthis form of employment massively.Others, also because of their businessmodels and type of production, did noteven made an attempt atimplementing it. The greatest challenge when makinguse of remote work arrangements hasbeen observed in more traditionalmanufacturing sector or in those wheretechnological innovation based onindustry 4.0 is still struggling toestablish.

The crisis has made more evident theneed for a plan promoting digitalliteracy and know-how, targetingpeople from all ages and involvinglifelong skills development. The so-called "Skills Revolution"focuses on digital skills, understood asthe specific skills featuring newoccupations in digital settings – whichface constant change – and as aresponse to the spread of the Internetof Things, to increased calculuscapacities, to access to significantamounts of data (Big Data) and tolabour demand and supply interaction(so-called digital disintermediation). The demand for digital skills featuresany work setting and is likely to affectall career and occupational paths. Against this backdrop, one mightconsider existing structural factors –e.g. the technological equipment of

Proposal 7 - A ‘Digital LiteracyPlan’: from schools to the olderpopulation, with formalizedcourses and marketable skills

PROPOSAL 7DIGITAL LITERACY

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Consequently, a ‘ComprehensivePlan for Digital Training’ must be putin place, which must start from theeducation system and provide aninclusive and well-integrated path, inline with individual abilities. This willhelp to adjust training courses whichcan be accessed by as many peopleas possible through user-friendlyplatforms. This is a sound investmentwhich will produce benefits in theshort term, reducing waiting timesand burdensome processes.

Examples of this include: wood andpaper products, the food, beveragesand tobacco sectors, metallurgy andthe production of metal products –save for equipment and machinery –and traditional Italian products.Online teaching, too, has been anopportunity for most students. Yetmany of them were left behind,especially those whose families werepoorly equipped in technologicalterms or those living in areas notconnected with digital highways.

PROPOSAL 7DIGITAL LITERACY

Digital skills are required in 92% of the profiles sought after among executives, highly-specialisedprofessions, and technicians;among white-collar workers and workers in the sales and services sectors (slightly lower than 40% of overalldemand) digital and technical skills are highly required, concerning 62% of the professionals sought after;Already in 2019, among specialized workers, plant and machine operators (27% of demand), the share ofspecialised professionals with digital skills required by companies was significant (50%);Even among unqualified professions (which account for just 15% of demand), the need for workers withdigital skills was relevant (31%).

The demand for digital skills The 2019 Excelsior Survey reported that digital skills transversely concern all professional profiles:

62% OF PROFILESSOUGHT AFTER

CONCERN DIGITAL SKILLS FOR WHITE-COLLARWORKERS AND THOSE OPERATING IN THESALES AND SERVICESSECTOR

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engage in undeclared work (13.1% of allthose in employment). In terms of Full Time Equivalent Units,this translates into 3.7 million units,amounting to 15.6% of the total. Undeclared work affects ourcommunity in important respects: a) those engaged in this form ofemployment are forced to live withoutprotection and are paid extremely lowremuneration; b) compliant companies are affected bythe unfair competition of thoseengaging undeclared workers;c) the government loses significantresources, which might be used forcollective benefit, giving rise to publicdeficits and unfair competitiveadvantages for those who do not paytaxes. The COVID-19 emergency could havean impact on undeclared workerswhich is not yet quantifiable. The lockdown – which imposedbusiness closures and prohibitedmovements – together with socialdistancing, have produced dramaticconsequences for the most vulnerablegroups of the population.

Undeclared work is the maincontributing factor to the crisis oflegality which for decades has affectedeconomic relationships in Italy, thusundermining citizens’ active labourmarket participation, a decisive aspectin any economic development process. While ISTAT has calculated that thehidden economy is worth some 200billion euros – more than 11% of thecountry’s GDP – its value in terms ofhidden wealth is 78 billion euros, e.g.40% of GDP. According to the Ministry of Economyand Finance (MEF), the loss taxrevenues resulting from the recourse toundeclared work in 2016 was equal to16.5 billion euros, if direct taxation andunpaid contributions are factored in.Furthermore, the loss of revenuesresulting from failing to pay the ValueAdded Tax (VAT), the personal incometax due for self-employment (IRPEF)and the tax on business income hasresulted in a shortfall worth more than 70 billion euros. The MEF has alsofound that 3.2 million workers

Proposal 8 - A plan forformalising undeclared workersfinanced with the resources ofthe inspection activity

PROPOSAL 8A PLAN AGAINSTUNDECLARED WORK

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It is necessary to further expand whatis provided for in the "RelaunchDecree", setting in motion aformalization process by certifyingexisting skills and developing thoseneeded. It is also necessary to assistthose engaged in undeclared work inentering formal jobs, by also makinguse of resources set aside throughinspection activities.

The social costs generating from therecovery phase and the increase of theundeclared economy would beunsustainable for the deprived publicresources and for the families involved,who would be forced to facedemeaning working conditions. When undeclared work is unearthed byinspection activities, those responsiblepay a fine. Yet no measures are put inplace to help those workers whopreviously engaged in illegal activitiesto access formal employment.

PROPOSAL 8A PLAN AGAINSTUNDECLARED WORK

Undeclared work in Italy According to ISTAT’s most recent data, the number of Full Time Equivalent Units (FTEU) engaged inundeclared work in 2017 was 700 thousand; they were mainly hired as salaried employees (2 million and696 thousand units). The irregularity rate, calculated as a percentage of the incidence of FTEUs hiredillegally out of the overall number of FTEUs, has been steady in the last two years (15.5% in 2016 and2017). Also, the latest data on labor inspections for 2019 provide a bleak picture in relation to the use ofundeclared work. Last year, inspection bodies reported 356,145 workers hired illegally, among whom41,544 were undeclared ones (i.e. 12% of the total number of people engaged in illegal employment).According to the estimations of Italy’s Labour Inspectorate, almost half of the companies where illegalsituations were reported hired at least one irregular worker.

€ 2 BILLION IN 2019TAX REVENUES FROM WORKAGENCIES (MORE THAN 23BN EUROSIN THE LAST 20 YEARS)

WAGES: € 4BN IN 2019REMUNERATION PAID BY WORK AGENCIES (51BN EUROS IN 20 YEARS)

€ 2,7 BILLION IN 2019SOCIAL SECURITY REVENUE FROMWORK AGENCIES (32MN EUROS IN

THE LAST 20 YEARS)

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THE PROPOSALS OF WORK

AGENCIES FOR ITALY ’S RESTART

Work and flexibility: safeguarding employment, promoting contracts, includingfixed-term ones, with higher protection for the worker

Vocational training: public funds awarded only to those ensuring access to

employment

Placing the individual centre-stage in occupational transitions: creating an

open badge to trace training and provide targeted and flexible employment

services funded according to results achieved

Tax Credit Extension to Professionals in order to deal with work reorganization

Restarting safely, adopting consistent organizational models through proper skills

Public Administration: digital skills, simplification and subsidiarity to overcomebureaucracy

A ‘Digital Literacy Plan’: from schools to the older population, with formalizedcourses and marketable skills

A plan for formalising undeclared workers financed with the resources of inspectionactivity

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Assolavoro is Italy’s National Association of Work Agencies. It brings together Work Agencies that produce over 85% of the totalturnover resulting from Agency Work, with more than 2,500 branchesnationwide. Assolavoro is a member of Confindustria and in Italy represents theWorld Employment Confederation (WEC) - Europe, the EuropeanConfederation of Employment Agencies.

Work Agencies which are members of Assolavoro