INTERNATIONAL LABOUR
OFFICE

Studies

GENEVA

and
Series
No.

October 2jth

Reports
C
2

ig-2 0.

Government Action
in dealing with Unemployment in Italy.
SUMMARY.

I. —

DURING THE W A R .

A.
Introduction.
B. Unemployment
resulting from
the lack of Electric
Power.
C. Employment of workers in the rice-fields.
D. Unemployment
Insurance of Munition
Workers.
II. —

AFTER THE ARMISTICE.

A. The discharge
B. Unemployment
III.

—

of Munition
Donation.

Workers.

T H E PRESENT MEASURES FOR DEALING WITH EMPLOYMENT.

A. Compulsory Insurance against
Unemployment.
B. The Reorganisation
of the Employment
Exchanges.
C. Loans for Public Works by communes or by direct
labour (co-operative groups of unemployed
workers).
IV. —
V.

IL0-SR/C2
COP.

2

—

TRADE UNION CRITICISM OF THE GOVERNMENT'S MEASURES.
PROPOSED AMENDMENTS TO THE DECREE OF 19 O C T .

1919

Government action in dealing with
Unemployment in Italy.

Italy was the first country in which compulsory insurance
against involuntary unemployment was organised for practically all workers. This was the purpose of the legislative
decree passed on October 19th, 1919, to the analysis of which
this Article will be chiefly devoted.
At the outset it will be useful to speak of the interesting and
varied measures taken by the Italian Government to deal wich
unemployment and to help the unemployed' both during the
war and during the crisis of the armistice.

I.

— DURING THE WAR.

a)

Introduction.

On the outbreak of the war, in August 1914, an acute unemployment crisis made itself felt in Italy. This was also, of
course, the case in most countries whether belligerent or neutral. In Italy it was due to the sudden repatriation of nearly
500,000 emigrants who had fled from, or been obliged to leave
countries at war *. More than the half of the repatriated were
agricultural labourers, and an inquiry mad« in September
1914 showed that more than 130,000 of these agricultural
labourers and 125,000 industrial workers had not been able
to find employment. At that time the total number of unemployed amounted to 280,000.
The permanent institutions at that time in Italy for dealing
with unemployment were very rudimentary. Unemployment
benefits were paid in 1913 by only 45 workmen's societies with
a total membership of 35,0002, and these were aided by subventions from some municipalities and by an important philanthropic society, the Società Umanitaria di Milan. Free Employment Exchanges were to be found in but few localities.
1

Dati statistici sui rimpatriati per causa di guerra e sulla disoccupazione. Ufficio del Lavoro. Roma 1915.
2
Report on Unemployment prepared by the Organising Committee
of the Washington Conference.

— 3 —

To reduce the number of the unemployed, recourse was
had, as is traditional in Italy in such cases, to an increase of
public works. A special credit of 39 million lire was voted
for this purpose by an Act of September 22nd 1914. But the
entrance of Italy into the war put an end to the unemployment
crisis, and until the Armistice the state of employment did
not call for measures on any considerable scale.
The Act of April 6th 1916, voting to the State Budget a
credit of 150,000 lire, is worthy of mention as a general
measure. From this sum Trade Unions, Mutual Benefit and Cooperative Societies who were paying to their members, manual
or non-manual, unemployment benefits in cases of involuntary
unemployment, were given grants proportional to the benefits,
and a credit of 30,000 lire was voted to assist free employment
agencies 1.
Later on special measures were taken to regulate the distribution of relief to fishermen thrown out of work in consequence of the prohibition of fishing in the Adriatic and in the
Gulf of Tarento 1 ; to give assistance to workers unemployed
on account of the shortage of electric power ; to send the
workers to the rice-fields ; and to provide for the unemployment insurance of workers in munition factories. The three
last measures have several original features.
b) Unemployment

due to the lack of Electric

Power3.

This was partial unemployment of a special character
resulting from a faulty water supply in winter, but affecting
many industries. The compulsory measures for dealing with
this form of unemployment remained in force only from
January 1st to March 31st 1918. The object of these measures
was to maintain output at the highest possible level, and they
implied a double obligation, one for the staff, the other for
the employers in the undertakings affected by the unemployment crisis.
The employer was entitled, if work had to be suspended
during certain hours of the day, or during certain hours of
the week, to occupy the staff at other hours than those of the
normal time table, or on other days ; to give other work to his
staff than that to which they had been accustomed, on condition that it should be work of which they were capable, and
that they drew a wage corresponding to that of their ordinary
work.
If, in spite of these arrangements, a period of partial unem1
Decreto luogotenenziale, 6 aprile 1916, n° 425. — Decreto ministeriale
21 maggio 1916.
2
Decreto luogotenenziale, 25 luglio 1915, n° 119; — 24 agosto 1915,
n° 1312 ; — 23 dicembre 1915, n<> 1880.
3
Decreto luogotenenziale 9 febbraio 1918, n° 140, Decreto ministeriale,
18 febbraio 1918.

— 4—
ployment of more than six hours a week was unavoidable,
the employers were bound to pay to the workers suffering
from this unemployment a benefit equal to half the ordinary
wage, for the hours exceeding six per week for which they
were unemployed, and this amount was added to the total
allowance for the cost of living. The workers were at liberty
to refuse to submit to alterations in the time table, or in
their work, as provided for, but in that case they lost all
right to benefits. The employers were alone responsible for
the payment of the benefits, and in case of failure to pay, they
were liable to a penalty amounting to double the benefits due
and were at the same time obliged to pay the latter.
c) Employment

of the Workers

in the

Rice-fields1.

The measures taken in this connection were compulsory,
while application to public employment Exchanges is generally
optional. They remained in force only during the year 1918.
In the provinces of Novara and Pavia, whenever it was
necessary to procure workers from a district other than that in
which the rice-fields were situated, the employers were obliged
to make application to poinc employment Exchanges established by a mutual arrangement between the agricultural
employers' and labourers' organisations in these provinces.
Before a certain date the employers had to notify to the
mayor of their commune how many workers they would
require. The workers who wished to find work in the ricefields of the provinces of Pavia and Novara were obliged to
apply to the mayor of their commune. It was the business of
the mayors to transmit both the demands of the employers
and the offers of the workers to the proper Employment
Exchange.
Workmen were moved from the place of their residence to
wherever they were to work at reduced railway fares, and
tickets were supplied for this purpose on presentation of an
order from one of the authorised Employment Offices.
Any offence against the above regulations was punishable
by a fine not exceeding 2000 lires.
d) Unemployment

Insurance

of Munitions

Workers -.

An acute period of unemployment was to be expected at
the close of the war, but with the exception of Great Britain
1
Decreto luogotenenziale, 14 marzo 1918, n° 350 : —decreto ministeriale,
2G marzo 1918; —decreto luogotenenziale, 4 aprile 1918, n° 458; — 23 giugno 1918, n° 931.
- Decreto luogotenenziale, 29 aprile 1917, n<> 670 ; — 24 luglio 1917,
n° 1185; — 11 novembre 1918, n° 1917.

—.5.-=-..

•

no other Government showed so much foresight in providing
against it as did the Italian Government. Italy compelled the
workers in all requisitioned factories to make regular payments with a view to tiding over this inevitable .period of
enforced idleness.
A list was kept at the Offices of the National Health and
Old Age Insurance Fund, and all workers of both sexes employed in requisitioned factories were obliged to be entered
thereon and to pay fortnightly subscriptions of 1.50 lire or uf
one lire in proportion as their earnings were more or less than
5 lire a day. A fortnightly contribution of 1.50 lire for every
workman was required en the part cf the employers, who
were also responsible for the due payment of all the contribution. These measures continued in force for three months
after the conclusion hostilities.
An Unemployment Fund was constituted composed of one
sixth part of all the contributions paid, and this was devoted
to relieving workmen discharged from requisitioned factories,
who were out of work at the end of the war.
The enforcement of the Act provided for the infliction
of severe penalties in all cases of infringement whether wilful
or otherwise. A fine equal to double the sum due was inflicted
on any employer known to have evaded his obligations. The
Unemployment Fund got the benefit of the total amount of
these fines.
After the Armistice, this Unemployment Fund, which was
intended only for the unemployed of the staffs of munition and
other war factories became merged in the General Benefit
Funds for the unemployed of every category, but workers
discharged from requisitioned factories were entitled to peferential treatment on account of the payments made by them
during the war.

II. — AFTER THE ARMISTICE.

The above measures were, however, found inadequate to
deal with the acute unemployment situation which succeeded
the Armistice. Various steps were immediately taken by the
Italian Government to meet the difficulties arising out of the
discharge of munitions workers as well as to provide Employment Exchanges, Unemployment Donation was also distributed and public works were undertaken for the purpose of
buted and public works were undertaken for the purpose of
giving employment to the discharged workers.
The measures taken to provide employment or to create
public works either remained as they were, or were simply
supplemented in the Later schemes of organisation of employment ; this will be described in Section III:

_ 6 -

a) The Discharge of Munition

Workers1.

An endeavour was made to check the unemployment crisis^
which was becoming more and more acute, by a decree
passed on the 5th December 1918, which regulated the manner
of discharge with respect to the staffs of all public or private
establishments that had worked directly or indirectly for the
war. These staffs were being suddenly thrown out of employment by the sudden stoppage of all war orders.
It was enacted that in no establishment could females or
minors be discharged from the staff at the rate of more than
25% weekly ; this p.ercentage could however be exceeded, if
thereby not more than 50 persons a week were discharged.
The Regional Committee for Industrial Mobilisation decided
the percentage of discharge in the case of men.
It was the duty of the manufacturer, as far as possible, to
keep in employment the. workers who had been longest in the
establishment and those who had the care of a family.
The manufacturers were compelled by the same Act to
pay compensation for dismissal to their staffs, the rates of
which were fixed according to the following scales : —
Women, heads of families, 40 days' wages, with a minimum
total of 140 lire.
Women, not heads of families, over 16 years of age, 20 days'
wages, with a minimum total of 70 lires.
Boys and girls under 16 j'ears of age, 7 days' wages, with a
minimum total of 15 lire.
Workmen over 16 years of age, 30 days' wages, with a minimum total of 180 lire.
The State undertook to refund io employers half the compensation the decree compelled them to pay.
The following were expressly excluded from the right to
compensation : persons discharged for disciplinary reasons ;
persons taken on after November 1st 1917, i. e. less than a year
before the Armistice ; finally, soldiers mobilised in the establishment unless their contract decided oLherwise, in which
case half the compensation paid by the employer was not
refunded by the State.
The Regional Committees for Industrial Mobilisation settled
all differences between employers and employees, and their
decision was final.
Discharged workmen could travel to their usual place of
residence by railway free of charge during the 10 days following their discharge.
1

Decreto luogotenenziale, 5 dicembre 1918, n° 1814; — 14 dicembre
1918, n° 18*60; — 22 febbraio 1919, n° 161.

— 7 —

These measures, which in the first instance were intended
to remain in force not longer than the 31st January 1919, were
afterwards continued until the 31st March of the same year.
b) Unemployment

Donation '.

A credit of 100 millions to pay unemployment donation to
tide over the period of transition between the close of the war
and the establishment of peace conditions was voted by Article 6 of the, decree of November 1918. The distribution of
these Funds was regulated by the decree of January 5th 1919,
an analysis of which is, given below.
1. Categories of Unemployed entitled to Aid. — The involuntarily unemployed, workmen, workwomen and labourers
(but not non-manual workers or workers on their own accountare entitled to ^receive unemployment relief -. Workers
engaged in undertakings where slack seasons are inevitable,
although the loss of -employment is involuntary, are not entitled to unemployment donation. Even in this case however
demobilised soldiers are entitled to unemployment donation.
Persons who of their own accord of have left their employment do not come - under the class of ¡involuntary unemployed,
nor those who have been discharged for a grave offence, nor
women who though earning wages during ¡.he war cease to
be wage-earners as soon as they have resumed their domestic
duties.
2. Waiting period and duration of benefit. — Unemployment donation becomes due only on the eighth day after
discharge, or in the case of workers in war factories who have
received compensation, on their discharge, only on the eighth
day after the expiration of the period during which the compensation for dismissal has been paid.
Every day of involuntary unemployment, including festivals, is paid for, the maximum not to exceed 180 days.
3. Amount of Donation. — Districts are divided into 3 categories : those of less than 20,000 inhabitants ; those of 20 to
60,000, and those of more than 60,000 inhabitants.
Men not less than 21 years of age are entitled to receive
2 lire, 2 lire 50, or 3 lire a day, according to the category of
their district ; women not less than 21 years of age are entitled
to 1 lire 50, 2 lire, or 2 lire 50 a day.
1
Decreto luogotenenziale, 17 novembre 1918, n° 1698 (art. 6 ) ; — 5 gennaio 1919, n° 6.
2
Special arrangements were made under the decree of 9 February 1920,
for salaried 'workers in private employ Subventions were given to their
associations which paid unemployment benefit to their members.

— 8—
Young people according to their age, sex and their district
are entitled to 0.50 to 2 lire a day. Workers in requisitioned
factories who have paid at least six fortnightly subscriptions
to the Central Benefit Fund, are entitled to supplementary
benefits varying from 0.25 a day for boys .and girls of 12 to
16 years of age, to 1 lire for men not less than 21 years of age.
Persons in receipt of benefit, whose husbands or wives
are also unemployed and not in receipt of any unemployment
relief or who have children under VI years of age, are entitled
to a supplement of 0.50 to 0.75 lire a day according to the
category of their district.
When several members of a family are entitled to unemployment relief, no reduction is made on that of the head of
the family, but the others are reduced by one half.
4. Distributing Agencies. — Unemployment relief may be
paid through the following bodies which, in every case, must
be previously authorised for this purpose by the Ministry of
Industry, Commerce and Labour. Their books must be kept
in accordance with the rules laid down by this Department
and they must submit to its control, (a) The Workmen's Unemployment Insurance Funds ; (b) the Unemployment Insurance Funds established by districts, provinces or other institutions, for workmen not on the books of the Workmen's
Fund ; (c) the Employment Agencies recognised by the Government and intended for workmen whose names are not
on the books of (a) or (b) ; (d) the District Employment
Boards in districts where the organisations described in (a),
(b), (c) do not exist ; (e) all other bodies authorised by the
Government ; (f) finally, when none such exist, those authorised by the Mayor of the district or his delegate.
5. Means of Control. — A Provincial Board of Control for
the examination of claims for unemployment relief and for
deciding all questions arising out of them is formed in every
province. These Provincial Boards are presided over by a
magistrate and consist of a representative of the workmen and
a representative of the employers. The two latter are elected
from among the members of the Provincial Employment Exchanges Commission.
Application for unemployment relief must be sent to the
Mayor or directly to the distributing body. It should state
whether the applicant is married or unmarried, widower or
widow, age, etc., and give the following particulars : establishment from which the applicant has been discharged, date
and reason of the discharge, amount of the compensation for
dismissal ; Employment Exchange on the books of which the
applicant is entered; Unemployment Fund to which he belongs ; and number of payments made to the Central Benefit
Fund in the casie' of a workman belonging to a requisitioned
factory.

— 9—
To provide against the same person being entered on the
books of several Distributing Agencies, a copy of all applications received directly by these bodies is forwarded to the
Mayor, whose business it is to compare them and see that no
attempt is made to obtain relief by fraudulent means.
If the application is in order, the Donation is immediately
given as a temporary relief and is paid at the end of every
week.
The unemployed workman must submit within a fornight
after his application the following documents amongst others
in support of his statements (except in the case of a workman
paid by the day and having no regular employer) : his paybook, and a testimonial from his last employer stating the
date and the reason of his discharge, the amount of the compensation for dismissal paid, the number of subscriptions paid
to the Central Benefit Fund in the case of a requisitioned factory, and the fitness of the workman, in the opinion of the
employer, for other work than that at which he was employed
in his factory. Should these formalities not be complied with,
payment of the relief will be stopped.
The employer is bound to give these documents to the applicant within five days after his discharge, on receiving which
the Distributing Agencies decide whether relief is to be. continued, modified or suspended. These decisions are trans 7
mitted to the Provincial Board of Approval, whose decision
is final.
Persons in receipt of unemployment relief must submit
during the whole period of relief to the measures of control
taken by the distributing bodies to prove that unemployment
is enforced.
Any person refusing to accept employment for which he
is fitted and which is paid according to local rates, will be
struck off the list of unemployed..
6. Penalties. — A distinguishing feature of all the legislative measures recently taken by the Italian Government with
a view to unemployment relief is the severity of the penalties
to enforce their application. The regulations already mentioned shows this. The decree of January 1919 was similar in
this respect. Persons summoned to sit on a Provincial Board
of Approval, who without adequate reason either refuse to do.
or do not attend the sittings ; the wjorkman convicted of
having made a fraudulent declaration in order to obtain unemployment relief or who oontinules to draw it after having
resumed work ; the employier who rjefuses thfe testimonial
required as above; or anyone who gives testimonial containing statements, etc., are liable to a fine.
7. General Administration. — A temporary body was
charged with the general management of the Unemployment

-

10

-

Fund, created in connection with the Ministry of Industry,
Commerce and Labour. Its function was to direct and control
the distribution of the funds entrusted to the Provincial Boards
and to exercise over the latter a general supervision through
the Inspectors of Industry and Labour and through other special officials.
8. Results \ — It was found impossible to cover the whole
outlay of the year 1919 by the credit of 100 millions of lire
voted by the Act of 1917 for the Unemployment Donation
Fund. A Royal Decree issued on the 7th of September 1919
granted a new credit of 50 millions.
From February 1st to December 31st 1919 the funds sent
to the Provincial Approval Boards to be distributed in
Unemployment relief amounted to 130,551,600 lire, and from
January 1st to June 30th 1920 to 30,966,000 lire.
Thie following table shows the number relieved per month :
lOla

Number of
unemployed relieved

11120

Number of
unemployed relieved

30th April
180,332
31st October
231,496
31st May
224,995
31st January'
270,487
30th June
231,181
29th February
261,497
31st July
179,472
31st March
235,486
31st August
206,429
30th April
202,002
30th September
255,062
The proportion of these unemployed in the different industries brought up to the 31st of January and to the 30th of
April 1920 will be found in the following table.
31sl January

«Olii Apri 1

Industries connected with the extraction
of minerals
7,855
4,978
Rural and Agricultural Industries . . . 75,683
60,632
Manufacturing Industries
26,765
21,770
Metal Industries
16,416
12,306
Chemical Industries
2,221
1,432
Production and distribution of Electricity
Light, Heat
678
742
Printing and lithography
1,230
1,071
Building and Public Works
106,246
73,760
Transport
10,962
10,032
Miscellaneous Industries not defined . . 13,517
7,479
Salaried workers
8,916
7,800
Total . . . 270,487
202.002
It will be seen that the number of unemployed has diminished in all industries except in the production and distri1

II Mercato del Lavoro. Marzo 1020 e settembre 1920.

-

11 —

bution of electricity, where, moreover, unemployment is very
slight, but that the most important fall, from 68,000 to 48,000,
took place in rural and agricultural industries (a fall of 15,000)
and in building and public works (a fall of 33,000), the period
under consideration being that between the- slack and the
full season.

III.

— THE PRESENT MEASURES FOR DEALING WITH
UNEMPLOYMENT.

Compulsory Insurance against enforced unemployment was
provided for in Italy by a law of 19 October 1919, which also
provided for the re-organisation of Employment Agencies. This
important law, — and it is one of its chief claims to excellence,
— did not stop at a mene organisation of insurance, properly
so-called, nor confine its activities to the collection of contributions and the payment of benefits. It went further, recognising the principle that any wisely conceived scheme of Insurance
ought not only t oprovide for the repair of loss, but also (and
primarily)to prevent, or at least reduce, the risk of its recurspecial organisation, the National Department for Employment
Exchanges and Unemployment Insurance was set up, one of
the functions of which was to encourage public works likely
to help in dealing with the problem of unemployment or to
provide work for the unemployed.
This section will deal with the organisation of employment
exchanges and the encouragement given to the execution of
public works and "co-operative grouping", with the object
of reducing the number of the unemployed.
a) Compulsory Insurance against

Unemployment].

1. General Organisation. — A joint general compulsory
Unemployment Insurance Fund is established in every province. Special compulsory Funds for specific trades may
be founded by a Ministerial decree, according as particular
circumstances or risk may require. Moreover, Mutual Benefit Societies organised by Trade Unions or by agreement between employers and workers may be authorised to distribute
their funds according to the prescriptions of the present
decree.
1
Decreto-legge, 19 ottobre 1919, n° 2214: An English translation of
this decree has been published by the International Labour 'Office in its
legislative Series (1920 Italy, 2) price 4d.
Decreto ministeriale, 29 dicembre 1919, che stabilisce lé norme p"er il
versamento dei contributi di assicurazione.

— 12 —

This authorisation is granted on the following conditions :—
a) Trade Funds must send in an application to the National
Employment Office, enclosing a copy of their rules and giving
a classified list of their members, and, in the case of Funds
already existing the accounts of the preceding years.
b) The rules must be drawn up in conformity with the
provisions of the present legislative decree and shall provide
that the State and the employers required to contribute to the
unemployment funds will be represented on the Administrative Council of the Trade Fund equally with the insured ;
c) Trade Funds shall admit as members all workmen in
the trade or occupation who make application for admission
even if they do not belong to the Trade Union by which the
Fund was founded. Of course, no workman can be on th?
books of more than one Fund.
In general, the Funds depend entirely on the contributions
of the insured and of their employers. The State gives no
financial support. However, a National Fund against involuntary unemployment has been constituted indepiendently of
the Trade and Provincial Funds for the purpose of granting
subventions to Joint Provincial and Trade Funds, and on the
other hand to Unemployment Funds established for workers
not coming under the Compulsory Insurance Scheme. A
Royal Decree will determine the conditions under which the
National Fund will be administered. Its function would
appear to be a sort of system of reinsurance for compulsory
Provincial Funds joint or trade supported partly by a deduction made from the receipts of the Joint or Trade Insurance
Funds and partly by a State contribution fixed at 40 million
lire for the first three financial years, the contributions for the
following periods to be fixed by a decree, but not to exceed
one-third of the average amount of subsidies during the three
first years.
2. Persons liable to Compulsory Insurance. — Workers of
both sexes, employed on the account of another person (even
occasionally or intermittently), either on a fixed wage or on
piece-work rates, as well as non-manual workers engaged in
private enterprise, whose pay does exceed 350 lire a month,
are compelled to insure against enforced unemployment.
Insurance shall not be compulsory for :—
a) Workers under 15 years of age or over 65.
b) Home workers or domestic savants.
c) Workers permanently employed by State, provincial or
communal organisations.
d) Permanent railway and tramway staffs.
e) Persons who work without remuneration.

— 13 —
Certain categories of workers who cannot conveniently be
brought within the scheme of insurance who are usually
employed on casual jobs may also be exempted by Ministerial
decree.
Unemployment Insurance Funds established voluntarily by
workers not coming under Compulsory Insurance will be
assisted, as has been said above, by the National Unemployment Fund.
3. Collection and Amount of Contributions. — Half of the
contributions shall be paid by the employer and half by the
worker. The former are responsible for the payment of the
contributions which must be made at the latest on the day
on which wages are paid. The part to be paid by the workers
may be deducted from their wages.
No subscription are due from the unemployed during the
a period of involuntary unemployment. Every worker must
have an unemployment card, by means of which payments
are made by affixing a special stamp ; these cards are kept by
the employer. No observations whatever shall be written on
the cards, except those permitted by the Insurance regulations.
The amount of fortnightly, weekly, or daily contributions
vary according to the wages as shown below : —
Class

I
II
in

Daily Wages

4 lire or under
F r o m 4 to 8 lire .

.

.

Fortnightly

CONTRIBUTIONS
Weekly

Daily

0.70
1.40
2.10

0.35
0.70
1.15

0.06
0.18
0.18

In drawing up this scale of contributions, the risk peculiar
to each occupation was not taken into account, so that it is
therefore necessarily provisional and somewhat experimental.
A modification of the rate of contribution may be accorded
to funds in respect of which the receipts are not sufficient to
cover the expenditure, by Ministerial decree at the end of
each financial year. Every three years a graduated scale of
contributions m a y be established by decree, in accordance
with particular classes of risk.
4. Unemployment Benefits. — The contributions paid entitle :
The 1st of the above classes to a benefit of 1.25 lire a
day ; the 2nd to a benefit of 2.50 lire a day ; the 3rd to
a benefit of 3.75 lire daily.
• The benefit is paid from the eighth day of unemployment
with a maximum total of 120 days annually.
Workers who generally receive a compensation for dismissal are entitled to benefits only from the eighth day after
the last day of the period covered by compensation.

-

14

-

Insurance Benefits are not paid for holidays, as was the
case where unemployment relief was given in kind.
Unemployment which is due to seasonal fluctuations does
not entitle to benefits for unemployment during the "dead
season" unless the claimant has paid a supplementary contribution, the .amount of which must be fixed by the rules of
each Fund. The Ministry of Industry, of Commerce and of
Labour will publish a list of occupations in which seasonal
unemployment occurs.
Unemployment resulting from disputes between employers
and workmen shall not give the workers a right to benefits.
No claim can be made for benefit before the insured has
paid at least 24 fortnightly contributions or an equivalent number of weekly or daily contributions.
Any workman who has paid more than 24 fortnightly contributions, but less than 36, is entitled to 90 days benefit. Only
those who have paid 36 fortnightly contributions are entitled
to 120 days benefit. Manual and non-manual workers engaged
in private undertakings, who during the two previous years
have been working in foreign countries in occupations coming
under the provisions of Compulsory Unemployment Insurance, are the subject of special measures. In their, case the
number of contributions entitling relief is reduced by one half.
5. Measures of Control. — The Provincial Councils for Employment Exchanges and Unemployment Insurance are responsible for the fulfilment of the copnditions under which
claims are made for benefit. For this purpose the approved
organisations send the claims for benefit within two days after
receiving them to the Provincial Council. The latter makes
its decision known within eight days. The approved organisation may, in the meantime, on its own responsibility, but
subject to revision by the Provincial Council, pay the claimant
the unemployment benefit.
The approved organisations are the Employment Exchanges or other organisations specially approved by the Ministry.
The Trade Funds may have the payments made through their
own offices, but their books must be kept in accordance
with the rules laid down by the Ministry. The insured unemployed worker must.enter his name on the books of an Employment Exchange on the day following his discharge, unless
he intends to get work by his own efforts, but in this case he
loses all claim to unemployment benefit until he has registered
at an Employment Exchange. Employees in private enterprises
who have received notice of dismissal should register at an
Employment Exchange at once, without waiting until the term
of notice has expired. The right to unemployment benefit is
forfeited by a workman who without sufficient reason refuses
work offered to him in employment similar to that in which
he is habitually engaged. The Provincial Council decides what

-15 —
constitutes a sufficient reason. The work must be accepted
even if in another locality in if the Provincial Council considers it necessary unless appeal be made to the National Employment Agency.
No unemployment benefit can be claimed by habitual
drunkards, tramps, or persons habitually frequenting public
houses.
Certain categories of unemployed may be called upon to
attend a course of elementary or technical instruction, and
this constitutes both a test of the genuineness of the unemployment and a means of increasing the efficiency of the unemployed.
Other tests are to be provided subsequently by a Ministerial Decree.
6. Penalities. — Employers refusing the necessary documents to. the Inspectors whose business it is to.examine them,
or neglecting to afford these Inspectors all possible assistance,
shall be liable to a fine not exceeding 1000 lire. A fine equal
to double the contributions due, but not exceeding 10,000 lire,
may be imposed on any employer who has not paid the contributions, the payment of all contributions due still remaining
chargeable. Any insured workman who knowingly makes a
statement or a false representation for the purpose of obtaining unemployment .relief loses his Tight Ito "benefit durfing
one year, and must pay a fine of not less than twice, not more
than ten times the full total of the benefits fraudulently drawn,
unless heavier penalities may have been provided for in the
Penal .Code. Employers or any other persons facilitating
frauds are liable to a similar penalty.
7. General Administration. — The administration of Unemployment insurance is entrusted to a Central Board and an
Executive Committee, previously charged (decree of 17th November 1918) with the general supervision of the Employment
Exchanges. The Central Board comprises : a president, six
representatives of industrial employers and six representatives
of industrial workers, four representatives of agricultural of
employers and four representatives of agricultural labourers,
two representatives of the Permanent Labour Committee, one
of the Central Industrial Mobilisation Board, one of the Central Agricultural Mobilisation Board, one of the National Soldiers' Aid Society, one from the institutions for thé protection
of female labour and a certain number of officials connected
with the different Ministries.
The Executive Committee comprises a president appointed
by the Government on the proposal of the Central Commission
and eight members chosen ¡from amongst thé members of the
Commission, four employer's and four workmen.
In ever}' province a Council for Employment Exchanges
Unemployment Insurance is- "formed for the purpose of admin-

-

16

-

istering the Joint Unemployment Funds and controlling Ihe
"working of the Trade Funds ; it also superintends and coordinates the work done by Employment Exchanges and examines the requests for grants for the carrying out of public
woks of for co-operative grouping (see below).
These Provincial Councils, charged in a more general way
with proposing any measures likely to diminish unemployment, include in addition to the representatives of the workers
and the employers, representatives of the Employment Exchanges and a certain number of officials.
Moreover, there are local inspectors who may be Chief Inspectors of Industry and Labour, Emigration Inspectors, or
directors of travelling agricultural schools.
8. Adoption of Compulsory Unemployment Insurance, its
gradual substitution for the System of Relief. — The system
of compulsory insurance against unemployment began to
operate on January 1st 1920, but in a one-sided manner, i. e.,
its functions consisted in merely collecting contributions without being able to pay any benefits. It must, in fact, be remembered that the first benefits could not be paid, at the earliest,
before the end of December 1920, as the right to relief is only
acquired after a minimum number of 24 fortnightly payments.
Some difficulty was experienced in collecting the contributions
in the course of the first months of 1920. This was partly owing
to the material impossibility of providing in due time the
insurance cards or the stamps to put on them. Moreover, strong
opposition to paying their contributions was shown by the
workers.
The legislative decree of October 19th 1919, had, however,
provided for the payment of the contributions by the employers either through the post or through banks, so that, in
spite of the want of stamps, the tolal amount of contributions
paid reached the sum of 1,308,Q79 lire 1 during the month of
January ; 2,027502 lire during the month of February ; 2,518,167
lire in March ; and 5,007,973 lire in April. They fell to 362,903
lire in May, but the sale of stamps having commenced from the
1st April this falling off is explained by the fact that there was
no longer reason for payments being made through banks òr
through the.post.
It would therefore appear, judging by the results of the
first months, that the payment of the contributions has a
marked tendency to increase.
However, Agricultural Association on the one hand and
Employers' and Workers' Associations on the other hand, having raised objections with regard to contributions given to
Trade Funds, the Government authorised :—
1

II mercato del Lavoro, settembre 1920.

— 17 —
1) The payment of contributions by agricultural employers
to be temporarily suspended. They would, however, be due
from the 1st January, but would be paid under another form
to be subsequently determined.
2) Contributions in respect to that part of their staff registered on the books of a Trade Fund to he put on one side by
employers instead of being paid to the Provincial Council.
But in order to relieve employers of the¡ responsibility of
keeping these funds, the Trade Funds were afterwards invited
(circular of April 8th 1920) to notify the agency into which,
with the approval of the Ministry of Industry, Commerce and
Labour, the payment of these contributions could be made 1 .
So far as the collection of the contributions was concerned,
the mechanism of insurance had thus begun to work. But
what is the fate of the unemployed, who are not yet entitled to
unemployment benefits not having paid the minimum number
of 24 fortnightly subscription ? They continue to draw relief
but this instead of being calculated according to the rules
for relief laid down in the preceding section, is calculated
as in the case of insurance benefits, i. e., it is no longer family
or residence condition that is taken into consideration, but
the rate of wages, classified in three categories.
It is incumbent on the unemployed workmen to furnish
evidence as to his wages. Should it not he possible to place
him in any category, the lower scale benefit of 1.25 lire a day
is granted to him. In no case can the benefit exceed 2.50 lire
a day. The temporary relief, therefore, involves a certain.
reduction in the benefits, which can only he drawn for a
. period of 180 days, including unemployment previous to
January 1st 1920, and save in certain exceptional cases, when
the benefits may be prolonged to a maximum of 90 days.
The National Department for Employment Exchanges or
Unemployment holding that the benefits paid as temporary
relief should be borne by the State alone, asked the -Government for a special credit to cover these payments. Measures
were taken to secure that the administration of this relief
should be kept wholly distinct from that relating to compulsory
insurance.
b) Establishment

of Free Public Employment

Exchanges'.

The principle of this system is the following. The free
Employment Exchanges already existing in the provinces or
districts, and certain private societies the rules of which con1
Bollettino del Lavoro e della Previdenza sociale, n° 4-5, aprile-maggio
1920.
2
Decreto luogotenenziale 17 novembre 1918, n° 1911; — 9 febbraio
1919,n°212; — 1 3 aprile 1919, n° 641 ; — Decreto-legge 19 ottobre 1919. n°
2214;— Regio decreto 27 novembre 1919, n° 2408.

-

18

-

form to certain conditions are encouraged by Government
subventions ; in localities where such do not exist, the Government itself establishes them, co-ordinates the different kinds
of local Exchanges, and prohibits the carrying on of Exchanges
for private profit.
1. Prohibition of Employment Agencies charging fees. —
The Italian legislative decree of October 19th 1919, enforcing
the above measure, is extremely rigorous. A real monopoly
of employment is given by it to the official or officially approved unemployment agencies. Public authorities and employers, except those recruiting their workers themselves, are
bound to apply to official employment agencies, giving the
number of workers required, their special work, the conditions
of work and the wages offered.
Employment Agencies charging fees are prohibited. And
the prohibition is rendered effective by the imposition of
penalties, not only on the .agent but also on the employer who
has made use of him. The penalty in the case of the employer
is 10 to 200 lire for every workman engaged through the paid
agent. The penalty is the same for the agent, and in the case
of a business agency, it may be closed down by order of the
Government. Should the offence be repeated, the agent is liable
to imprisonment for a term not exceeding thirty days.
2. Different kinds of approved Employment Exchanges. —
The following kinds of employment offices are approved and
receive Government subventions :—
a) Those established by ihe provinces or communes.
b) Those established by mutual agreement between employers' and workers' organisations.
c) Those depending only on a workers' or on an employers'
organisation and recognised by the other party either by an
agreement cr only in fact.
d) Those founded by charitable or other institutions.
Employment Exchanges depending directly on the State
can, moreover, be established, wherever the necessity exists.
The Employment Exchanges of the first four classes musi
obtain a licence from the Ministry of Industry, Commerce and
Labour, and carry on their operations according to the rules
laid down therein.
All these Employment Exchanges, except those mentioned
under (c), must be worked by Joint Committees representing
employers and workers elected by the organisations concerned
under the Chairmanship of a person chosen by the common
consent of the representatives of both classes. Attention should
also be called to the official recognition of the Employment
Exchanges organised solely by the employers, or by the workers, ¿>ut agreed to either in law or in a fact by the other side.
In addition to the employment Exchanges properly so

-

19

-

called, the legislation provides for the compulsory establishment, in every commune where it has not been thought necessary to set up such an exchange, of an Employment Committee.
presided over by a representative of the Communal Authorities, not chosen from amongst workers or employers, and
composed of an equal number of representatives of both parties.
3. Conditions of Local Employment. — Wage-earnelrs and
salaried warkers in private enterprises coming under compulsory Unemployment Insurance must be in possession of a
book, in which employers are bound to enter the date wheii
the holder was taken on and when he was discharged. The
latter, whenever out of employment, must deposit this book at
the Employment Office. The result (good or bad — opinions
are divided on the question) would appear to be to prevent a
worker, desirous of changing his employment, being able to
enter his name on the books of an Employment Exchange
before giving notice to his employer as the book remains in
the possession of the latter and is not returned to the worker
until he leaves his job.
Employers, and public authorities not intending to recruit
their staff directly, are bound, as we have seen, to send their
offers of employment to approved Employment Exchanges.
Even when directly engaging their staff, employers must notify
every fortnight to the appropriate Exchange the names and
classes of workmen engaged during the fortnight.
The Employment Exchanges are thus able to exercise an
effective control over the Labour market. This control is not
limited merely to engagements and discharges, but extends
also to the conditions of labour. The collective agreements
made by workers' and employers' organisations for a certain
industry or area must be deposited at the Employment Exchanges. In this case placings are efflqcted on the conditions
laid down by these agreements, unless more favourable ones
are offered or asked for in any particular ease. In no case
can any engagement be offered on conditions less favourable
than those provided for by the agreement. The Employment
Exchanges can also recover, in the case of day labourers,
Avages due by different employers and pay the total to the
workers. In this case it is also the -duty of the Office to
compel the employers to deduct from the wages, the amount
of the contributions for Unemployment Insurance.
Contrary to the practice in many other countries, where
in case of collective disputes the public employment offices
merely notify the employers or the workers applying to them
of the existence of the dispute, the Italian employment offices
must suspend their activités on behalf of the parties in conflict.
As soon as the dispute is settled by arbitration or by conciliation, the office concerned resumes its operations in favour of
the parties who abide by the decision arrived at.

— 20 —

4. Coordination of Employment Exchanges. — Under this
heading are to be distinguished : Communal Bodies (Employment Committees and Employment Exchanges), Provincial
bodies, Interprovincial bodies and a Central Council in connection with the National Office for Employment Exchanges and
Unemployment.
The Communal Offices prepare at the close of every day
uniform tabular statements of their general operations, showing
in particular the number of places vacant and offered. This
information is sent daily, by the the quickest postal route to
the Provincial Employment Office, the function of which is to
act as a clearing house for the demand and supply of labour
throughout the province. In addition, the Communal Employment Exchanges send to the National Employment Exchange
nominal rolls of the unemployed in every trade and also of
those who have obtained employment through the Exchange
or whose names have been struck off its books. At the close
of every day the Provincial Employment Offices send both
to the Employment Exchange of the Zone on wThich they
depend, and to the National Employment Exchange information for the province analogous that which they have received
from their respective communes.
The activity of the Zone Employment Exchanges extends
to a group of provinces. As soon as they have made use of
the offers and demands of employment transmitted to them
by the Provincial Employment Offices for their own districts,
they send the unsatisfied demand and supply to the National
Office which seeks to adjust the demand or supply through
out the whole kingdom. Workers can only be sent to foreign
countries under the control of the Commissioners of Emigration.
The Employment Exchanges are authorised to advance
travelling expenses to workers brought from a distance, thus
facilitating mobility of labour. The employers are obliged to
deduct not more than a tenth of the wage of such workers for
the purpose of repayment of the sum advanced. By another
regulation groups of not less than five persons provided with
the certificate of an Employment Exchange can travel either
to or from their place of work, at military rates.
The Provincial Employment Offices and the National Office are administered respectively by Provincial Employment
Councils and by the National Council, which have been dealt
with in the chapter on Insurance. The Zone Employment
Exchanges are spontaneous organisations not corresponding
to a definite administrative area, extending, as a matter of fact,
to several provinces and established by common consent of the
General Federation of Labour and the General- Employer's
Federation.

— 21

-

5. Statistics. — Up to April 30th 1920, there were 1 : —
4,245 Communal Employment Commissions.
255 Local Employment Exchanges (Public or maintained
by either workers or employer offices).
28 Provincial Employment Offices.
18 Zone Employment Exchanges.
The work done by the different Employment Offices from
their creation to the 31st October 1919, is shown by the following figunes a : —
Daily Wages

Class

I
II

Men
Total

Registered

397,098
127,777
524,875

UNEMPLOYED
Placed in
Unemployed on the
31st Oct. 1919
employment

116,684
33,554
150,238

223,473
79,474
302,947

Unemployed workers who found work without the aid of
the Employment Exchanges are not included in the above
figures. Hence the number unemployed does not correspond
with the difference between the number of those registered
and the number of those for whom employment has been
found.
The State subventions, for which a credit of 2 millions of
lire was voted by the decree of November 17th 1918, amounted
at the beginning of 1920.to 431,900 lira*.
c) Loans for Public Works by Communes or by direct
labour (co-operative groups of unemployed).
1. Public Works by Communes. — The legislative decree 1
of November 17th 1918, authorised an Expenditure of
3,300,000,000 lire for' the carrying out of public works, to be
divided as follows :—
1,000,000,000 for the construction of roads, bridges, canals,
irrigation works, dykes, etc. ; 1,800,000,000 for railways ; 500
millions for works depending on the different Ministerial departments.
The National Office for Employment Exchanges undertook
an enquiry into the nature of the works to be carried out in
the near future for the State, for the Provinces or for the Districts. It resulted from the enquiry that the total cost of these
works would amount to more than 1,000,000,000 lire, but that
i
Bollettino del Lavoro e della Previdenza sociale. n° 4-5, aprile-maggio
1920.
2
II Mercato del Lavoro, n° 1, 2, 3, marzo 1920.
3
Bollettino del Lavoro, aprile-maggio 1920.
4
Decreto-legge 28 novembre 1920.

— 22

-

their execution presented a series of difficulties such as the
high cost of raw materials, the difficulty of transport, the shortage of technical advisers Lo draw up plans and direct the work,
the lack of financial resources, and official and administrative
obstacles.
The decree of October 19th 1919, on the re-organisation of
Employment Exchanges and enacting compulsory unemplo}-ment insurance, voted a credit of 50 million lire to the Employment Exchanges and Unemployment Insurance Department,
for the purpose of enabling the communes by means of advances to carry out without delay public works of local importance. These advances were granted on the recommandation of Provincial Employment Councils and the said Councils were responsible for the use to which they were applied
and for their being refunded.
The decree of November 28th 1919, modified by the decrees
of February 1st, of February 18th, and of June 3rd 1920, was
distinguished by even more important measures for the furtherance of public works.
By this decree, a special temporary Committee was formed
under the President of the Council, the object of which was to
facilitate the carrying out of public works without delay and
to assist land settlement with a view to diminishing unemployment and increasing national production. The function of
the Committee was to decide which works were to be undertaken by the State (especially in the invaded and in the
Southern provinces, and in the islands anr in the mountains)
and which were to be carried out by the provinces, the districts, or by the combined action of the parties concerned taking into account the extent of unemployment and the particular
needs of the locality. The simplification of procedure in granting these subventions, even should this involve a departure
from the practice laid down by laws and regulations, is also
the work of this special temporary Committee. It has at its
disposal funds amounting to 50 millions, voted by the decree
of October 19th 1919 ; it decides what exceptional loans the
Loan and Deposit Fund may make to the Districts, Provinces
and private corporations for the carrying out of public works,
up to a maximum of 500 million lire \
The decree of November 28th 1919, enacts that these loans
may be made free of interest.
In order to enable workmen to leave the place where unemployment is most acute for other localities where they can ñnd
employment, the decree also provides that the cost of execution
ma yinclude the outlay requisite for travelling and for the
lodging of the workmen, as Avell as for the construction of
huts, kitchens, etc. To justify the right to these different pri1

This sum was afterwards increased by 100,000,000 lire by decree of
April 25th 1920 and again by 50,000,000 'lire by the decree of 8th June
1920.

— 23 vileges, the w o r k should be such as could be executed i m m e diately, i.e., begun before the 15th July 1920, and finished in
December of the same y e a r 1 , would give employment to a
large nu'mber of w o r k e r s and not require too m u c h building
materials, and meet the necessities of local unemployment.
T h e decree of November 28th 1919 provides also for hydraulic and agricultural improvement w o r k s and land settlement. T h e State is, moreover, empowered to acquire to enter
into immediate possession of the lands for improvement. In
order lo p r o m o t e the ^execution of public w o r k s granted to
private firms, the decree authorises the latter to issue bonds
guaranteed by the contributions that the Public Authorities are
empowered to give for these works, and authorises a large
n u m b e r of institutions, such as the Loan and Deposit Bank, the
National Insurance Institute, Savings Banks, P a w n Offices, etc.,
to subscribe to these bonds.
2. Public works by "direct labour" (through
co-operative
groups of unemployed
workers). — T h e r e already existed inItaly a National Go-opejrative L o a n Institution. FaciliLiies were
given for granting loans, even to Co-operative Societies not
yet regularly registered, on condition that the object of these
loans should be used for the immediate execution of w o r k and
not for the purpose of buying machinery or expensive material,
but for the p a y m e n t of the w o r k e r s , and that t h e d e p a r t m e n t
of the loans should be guaranteed.
A m o r e original measure, and one which we believe h a s
not been taken a n y w h e r e else, but the result of which it would
bte interesting t o k n o w consisted i n uniting in co-operative
groups according to trades, for. the p u r p o s e of carrying out
certain kinds of w o r k of w o r k e r s registered as unemployed,
for w h o m it was easy to find w o r k quickly. It is, moreover,
enacted by Article 22 of t h e decree of October 1919, that the
Provincial E m p l o y m e n t Councils can, on t h e authorisation of
the National Office, advance funds to these cooperative groups
from the credit of 50 millions, mentioned in the preceding
Section.

IV.

—

T R A D E U N I O N CRITICISM OF THE
GOVERNMENTS M E A S U R E S .

l

On t h e 12th, 13th, and 14th F e b r u a r y 1920, the General
Confederation of L a b o u r (C. G. L.) held at R o m e a special
Congress for the purpose 'Of discussing Social Innsurance.
. \ The decrees of November 29 1919, had fixed March 31st 1920. Subsequent decrees put it further back.
1
Cf. article by Mr. Angiolo Cabrini : "Assicurazioni sociali : Il convegno della Confederazione del lavoro", in the Rassegna della Previdenza
Sociale : February 1920.

-

24 — -

Reports had been prepared on. Unemployment Insurance,
Public Employment Offices, Old Age Insurance, Health
and Accident Insurance in Agriculture and Industry.
The spirit that prompted the convening of the Congress
may be seen by the following declaration : "We say to the
Governing classes—Social-Insurance is an excellent thing. The
Italian State is late in taking these measures. Better late than
never. But these forms of Social Welfare should be administered by the proletariat. We consent to the pecuniary contributions demanded from the working class, but only as a
temporary measure and to strengthen the claim made by them
that Insurance be administered by the insured. We do not
want any superfluous interference, nor shall we tolerate any
redtape dictation. The decrees to be examined by the Congress
of the Confederation are the outcome of stifling, retrograde
officialdom, which nullify the best intentions of the Government. The Congress will advance decisively to the assault of
the Officialdom which rules over our country. »
The following resolution was also carried with respect to
Employment Exchanges and Unemployment Insurance :—
"Whereas the legislative decree of October 19th on Employment Exchanges and Unemployment, which places Unemployment Benefits under the control of the employers and
the finding of employment under that of the State (though
this is the exclusive right of the working class).
"Whereas the said decree tends to paralyse our class action
and under the pretext of relieving unemployment, to legalise
the supplanting of the working classes with their own consent.
"This Congress declares that the worker has a right to live
and is of opinion that the Government is bound to take such
measures as will diminish unemployment and its consequences ; claims for the workers' oifices the undisputed right
of procuring employment for the workers, taking into account
the special technical conditions of the different industrial and
commercial classes invites the C. G. L. to demand the suspension of the application of the decree, and in case of refusal,
calls upon all the Italian organisations not to pay any subscriptions to Unemployment Funds and calls upon the Council of
the C. G. L., the Socialist Parliamentary group and the
leaders of the Party to explain to the country and to Parliament the action necessary for the defence of the principles
set forth above.
"It is incumbent on the Organisation to defend the following principles which should be clearly enunciated in the law.
Wherever a workers' office is recognised, no other body
should exist, ajid no Communal Employment Commission
should be formed. The recognition of Joint Offices at present
in operation, wherever the development of the organisation
has not yet allowed of the establishment of a Workers' Office,
must not prevent the latter from being recognised as soon as

-

25

-

they can be established and can prove that they represent the
majority of the workers."
This resolution war carried by 70 votes against 6, in opposition to a more radical text.
Before the voting a finer and more detailed criticism of
the decree of October 19th 1919, had been made by the reporter, Mr. Pagliari, Director of the Consortium of the Milan employment Offices, and of the Unemployment Relief Fund, established by the Società Umanitaria. These criticisms ran as
follows :—
The system established by the decree is the result of the
fusion of two contradictory principles, that of an autonomous
organisation on a trade basis (Ghent System) and that of an
oflicial Insurance organisation, of which the British Act of
1911 is an example. The system adopted is not insurance
with threefold contributions (State, Employers and Workers),
but a system of Insurance with double contributions (employers and workers), with Slate subventions. The principal
charges are borne by the two interested classes, but the administration of the Funds is entrusted to Bodies composed of
three factors—Representatives of the Slate, of the Employers
and of the Wage Earners.
The subventions granted by the State are undetermined
and would appear to be limited to a Re-insurance Fund, whilst
the burden of Insurance properly so-called appears to fall
on the insured contributors and on the employers.
The following practical conclusions were drawn by Mr. Pagliari in summing up :—
1. To render the suppression of paid Employment Agencies
effective, it must be specified that the agents entrusted by
the employers with the recruiting of workers must belong to
the permanent staff of the enterprise, and must not be in the
service of any other enterprise.
2. The contribution of the State to Unemployment Insurance should be a fixed sum.
3. The establishment of Trade Funds, either as sections of
Joint Compulsory Funds, or as Compulsory Industrial Funds
should be favoured as much as possible, preference, however,
to be given to Funds constituted by the Trade Unions themselves, or by common consent between employers and workmen.
4. All these Funds should be self-controlled, and this autonomy should mean, subject to the approval of their rules by
the Central Committee, the liberty to fix the rate of subscription and also of unemployment benefits, provided that these
benefits shall not be less than those laid down by the General
Insurance ; that the benefits be distributed by the Employment Offices themselves which should be administered by an
equal number of representatives of employers and of insured

— 26 —

contributors; the State contributions to the Trade Funds to be
the same as those granted to the general Insurance, provision
to he made for the possible transfer of a Trade Funds to the
General Insurance or vice versa.
5. That an Industrial Unemployment Fund may be declared
compulsory by the overnment at the request of the majority
of employers and of workers liable to be insured in a given
industry.

V. — DRAFT SCHEME OF REFORM.

A Draft Scheme for the reform of the decree of October
19th 1919 was presented as early as April 22nd 1920 to the
Central Employment Commission. 1 The two essential principles of this draft are :—1) the establishment of the threefold
system of contributions, State, employers and workers ; 2)
securing for the Bodies entrusted with the administration of
the Insurance Funds the largest possible measure of autonomy
with the joint collaboration of employers and workers. The
most important provisions of the scheme are the following :—
General

Administration.

The National Office for Employment, Exchanges, Unemploymeni, Insurance, should be changed into an autonomous body analogous to the Social Insurance Institute.
Its
Governing Body and its Executive Committee should be composed for the greater part of representatives of employers and
wage-earners in Industry, Commerce and Agriculture, whose
decisions should be final.
Employment.
The suppression of Employment Agencies conducted for
profit should be extended to the recruiting of non-manual
workers and theatre staffs. Stricter measures should be enforced to oblige all employers, except such as engage their employees directly, to apply to recognised Employment Offices.
The subventions to the Employment Exchanges should be
covered by a special item in the State Budget instead of being
taken exclusively from the National Unemployment Fund.
Unemployment

Insurance.

The State should contribute to the Insurance Funds through
the National Unemployment Insurance Institute a half-yearly
1

II Mercato del Lavoro, settembre 1920.

— 27 —

contribution equal to the half of the total sum paid by the
insured contributors and by their employers.
The rate of contributions and of the benefits should be
modified in conformity with the following table, which differs
chiefly from the rates at present in force in providing for a
class of higher contributions corresponding to wages exceeding 12 lire and for a corresponding increase of benefits :—
Class

I
II

Daily wage

Not less
From 4
i n From 8
IV Over 12

t h a n 4 lire .
to 8 lire .
o 12 lire . .
lire . . ,

CONTRIBUTIONS

Daily Benefit

Fortnightly

Weekly

Daily

0.60
1.40
2.00
2.60

0.30
0.70
1.00
1.30

0.06
0.12
0.18
0.24

1.25
2.75
5.00
5.25

The National Re-Insurance Fund should be constituted by
an initial percentage of 10% on the total receipts of each fund,
the rate of percentage being subject to periodical revision. The
National Fund would provide the working expenses of the
National Institute and of the Provincial Committees as well
as the subventions to the Employment Exchanges, with the
exception of the special State contribution claimed elsewhere.
The Workers coming under Unemployment Insurance
should be the same as those subject to Compulsory Sickness
and Old Age Insurance in order to unify as far as possible
the different forms of Social Insurance.
Only two types of Insurance Funds ought to exist : Joint
Provincial Funds and Compulsory Trade Funds. Registration on the books of Trade Funds should be done according
to from so that workmen of different trades but belonging to
the same undertaking would be registered with the same Fund,
thus simplifying the Funds the relations between the bunds
and the employers, exception however being made wherever
important groups of workers belonging to different trades are
employed in the same establishment, in which case each group
ought to have the right to register with its Trade Fund.
As the intervention of the State in the management of the
Trade Funds is purely a measure of control, its representation
ought to be limited to a single member.
General or Industrial Funds should have the right to collect
supplementary contributions entitling those who pay them to
a supplementary benefit, it being understood that these supplements are a special item not involving State contributions.
Subventions to Unemployment Funds established by persons not coming under the Compulsory Insurance Act should
be covered exclusively by the Treasury and not drawn from
the National Re-insurance Fund.
Facilities for the Execution of Public Works.
The credit of 50 millions voted by the decree of October

— 28 —

19th 1919 should be renewable and increased yearly by an.
annual deduction from the reserves of the National Reinsurance Fund.
Encouragement

of co-operative groups of

Unemployed.

The formation of co-operative groups of workers amongst
the unemployed being a possible means of not conforming to
the rule -which prohibits Employment Offices from offering
workers at lower wages than those fixed by agreement it
would be preferable to reserve this scheme for co-operative
groups of workers already existing.
The Period of Transition.
The present scheme provides for the continuation of Unemployment Donations up to the time when Insurance Benefits
can be distributed, but does not state by what Body these
Donations are to be paid. The Executive Committee of the
National Office says that it shoned be inadmissible that these
Donations, which should be covered exclusively by the State,
should be paid out of the contributions paid by employers and
wage earners to the Unemployment Insurance Fund.

SOURCES O F INFORMATION.

Legislazione del collocamento e della disoccupazione al
31 dicembre 1919. Supplemento -al n° 1 del bollettino II Mercato del Lavoro.
Il Mercato del Lavoro, dicembre 1919, marzo 1920, settembre 1920.
Bollettino del Lavoro e della previdenza sociale, n° 4-5,
aprile-maggio 1920.
Commissariato generale della emigrazione. Relazione sui
servizi ¡per il collocamento e per la disoccupazione in Italia
dal 10 gennaio 1919 al 15 gennaio 1920. Supplemento al N° 1,
2, 3 (gennaio-marzo 1920) del Bollettino della Emigrazione.
La disoccupazione e il collocamento della mano d'opera nei
vari stati durante la guerra. Associazione internazionale per
la lotta contro la disoccupazione. Sezione italiana. Roma 1918.
Rassegna della previdenza sociale. Febbraio 1920.

STUDIES AND REPORTS
already issued :
1

In cases where the English or French text of a Report has not yet
been published, it will be issued at a later date.

Series A.
N°

1.

T H E AGREEMENT B E T W E E N T H E SPANISH WORKERS' ORGANISATIONS, issued on September 25th 1920.
In

English
»

2.

and in

French,

T H E DISPUTE I N
TRADE
UNION

THE METAL
CONTROL OF

INDUSTRY IN ITALY.
INDUSTRY, issued on

September 25th 1920. In French
»

3.

A N N U A L MEETING
CONGRESS 1920,

English
»

4.

OF

5.

BRITISH

issued on

TRADES

October 4 t h

UNION

1920. In

only.

INTERNATIONAL CONGRESS OF WORKER'S I N T H E FOOD
AND DRINK TRADES, issued on October 11th 1920.

In English and in
»

THE

only.

French.

T H E BRITISH GOVERNMENT

AND T H E MINERS' F E D E R A -

TION OF GREAT BRITAIN. CONFERENCE BETWEEN SIR
ROBERT HORNE AND THE MINERS' FEDERATION, issued
on October 11th 1920. In English only.
»

6.

T H E CONGRESS OF THE LABOUR AND SOCIALIST I N T E R NATIONAL, issued on October 14th 1920. In
French

only.
» 7.

T H E MINERS' INTERNATIONAL

tober 19th 1920.
»

8.

CONGRESS,

In English

and in

issued on OcFrench.

T H E INTERNATIONAL LABOUR ORGANISATION. A COMPAR-

ISON, issued on October 21st 1920. In English
in French.
»

9.

THE

INTERNATIONAL

CONGRESS

issued on October 22nd 1920.
French.

OF

METAL

In English

and

WORKERS,

and

in

Series B.
N° 1.

Enquiry by
t h e International Labour Office end of May 1920,
issued on September 1st 1920. In English and in
French.

COAL PRODUCTION I N THE RUHR DISTRICT.

»

2.

P A P E R S RELATING TO SCHEMES O F I N T E R N A T I O N A L ORGANI S A T I O N FOR THE DISTRIBUTION OF RAW MATERIALS
AND FOOD STUFFS, issued on October 5th.
In French

only.
Series C.
N ° 1.

T H E BRITISH LEGISLATION ON UNEMPLOYMENT
ANCE, issued on October 26th 1920. In

INSUR-

English

and in French.
Series D.
N° 1.

STAFF

REGULATION

ON T H E F R E N C H

issued
and in French

RAILWAYS,

on September 4th 1920. In English
Series H .
N°

1.

THE

CONSUMERS'

CO-OPERATIVE

SOCIETIES

IN

1919

(Denmark and Sweden), issued on September 8 t h
1920. In English and in French.
»

2.

SEVENTH
OFFICE,

CONGRESS

OF

THE

BELGIAN

issued on September 25th 1920.
and in French.

CO-OPERATIVE

In

English