Introduction

The principle of subsidiarity prescribes that decisions should be made at the level where they can be most effective and, as far as is reasonable, by the level closest to the individuals affected. In the context of discussions over the appropriate direction of labour law reform in Italy, Marco Biagi argued that subsidiarity should be the leading principle of collective bargaining to respond to concerns about employer competitiveness in an increasingly global trading environment. In keeping with subsidiarity, Marco Biagi also believed that the scope of bargaining at the local level should not be dictated to the parties on the basis of some predetermined bargaining structure, but that it should “fall to the contractual agents themselves to define the field of application.”

The purpose of this paper is to take a fresh look at the role of subsidiarity in the labour context by focusing on the links between globalization and labour regulation in light of the current trend towards decentralization of collective bargaining. To that end, the key notions of globalization and decentralization will be examined and related to the structural and functional dimensions of subsidiarity in the context of labour regulation. The discussion will emphasize the potential of subsidiarity as a means to promote an inclusive democracy, and stress its pivotal role as an operative principle of social justice.