2002 Annual Review for Greece

This record reviews 2002's main developments in industrial relations in Greece.

Political developments

The Pan-Hellenic Socialist Movement (Panelinio Socialistiko Kinima, PASOK) government, headed by Prime Minister Konstantinos Simitis, continued its second successive four-year term in 2002. The next parliamentary elections are scheduled for the summer of 2004, but may be postponed until the autumn so as not to coincide with the 2004 Olympic Games, which will be held in Athens in August.

Collective bargaining

During 2002, there was some tendency towards a decentralisation of collective bargaining compared with previous years. Table 1 below, based on official data from the pay directorate of the Ministry of Labour and Social Security, shows the number of collective agreements (SSEs) concluded in 2001 and 2002 at the various levels, and the number of arbitration agreements (DAs) issued by the Mediation and Arbitration Service (OMED).

Source: Ministry of Labour and Social Security.

The table indicates a considerable increase in the number of collective agreements signed at all levels in 2002, intensifying a trend seen in 2000 and 2001 (GR0201114F). The fact that sectoral and enterprise-level arrangements (collective agreements and arbitration agreements) outnumber occupational arrangements may be entirely attributed to the fact that Law 1876/1990 on 'free collective bargaining and other provisions' is now being implemented on a wide scale. This law introduced the sectoral and enterprise bargaining levels for the first time in Greece and sought to give them precedence over the occupational agreements which had previously predominated (reflecting a traditional approach to the representation of workers’ interests). There has also been a significant reduction in the number of arbitration decisions since Law 1876/1990 came into effect and OMED came into operation (GR0206103F).

Despite the decentralisation of the bargaining system, compared with the earlier centralised and hierarchically structured system based on Law 3239/1955, the social partners do not yet appear to have made use of the potential provided by Law 1876/1990 in terms of content. In particular, although Law 1876/1990 broadened the scope of collective bargaining to include any issue related to the terms and conditions of employment (except pensions issues), the exercise of the right to organise collectively within a company and company policy, it is economic and financial issues, especially those related to pay, which still predominate, as has traditionally been the case in Greece.

Pay

At national level, according to the 2002-3 National General Collective Agreement (EGSSE), signed in April 2002 for the private sector (GR0204109F), the nominal increase in basic pay for 2002 was 5.4%. This increase, which was paid in two instalments, included 1.1% owed on the basis of a clause in the 2000-1 EGSSE (GR0006175N). Overall, in 2002, trade union pay demands at all levels (national, sectoral and enterprise) were focused - with varying degrees of success - on a gradual convergence of Greek real wages with the EU average. According to the 2002 Annual economic and employment outlook published by the Institute of Labour (INE) of the Greek General Confederation of Labour (GSEE) and the Confederation of Public Servants (ADEDY) (GR0209104F), wages in Greece have remained very low compared with the other EU Member States, whether seen as a cost or as income. The INE report finds that differences in purchasing power parities and national productivity explain only a part of the gap between remuneration in Greece and the EU average. The remaining gap of around 15% is not justified and should be gradually reduced, concludes the report.

Working time

According to official data from the National Statistical Service of Greece (ESYE), average contractual working time stood at 40 hours a week in 2002, and average actual working time for people working full time (over 35 hours a week) at 45.5 hours a week - up from 44.9 hours in 2000 and 45.4 in 2001.

The reduction of the working week to 35 hours without loss of pay was again one of the demands (GR0201146N) put forward in the talks over the National General Collective Agreement by the GSEE trade union confederation in 2002, but without any agreement being reached. According to the Federation of Greek Industries (SEV), the social partners' inability to agree on a shorter working week underlines serious problems related to flexibility and costs created by recent employment legislation - Law 2874/2000, which covers matters including overtime and working time flexibility (GR0104104N) - at a time when the trend in Europe as a whole is towards reducing rigidities and facilitating the operation of labour markets.

At sector level, the Greek Federation of Bank Employee Unions (OTOE) successfully raised the issue of a shorter working week in bargaining over a new collective agreement for the banking industry (GR0202102F). The 2002-3 sectoral agreement thus reduces weekly working time to 37 hours from the 38 hours and 20 minutes previously in force; however, bank opening hours were extended to 32 hours a week from the 29 hours and 30 minutes previously in force. The new hours came into effect on 1 September 2002 (GR0206102N).

Overall, according to the findings of a study published by INE/GSEE-ADEDY in 2002 (GR0210102F), individual company policy regarding working time issues seems to be characterised by: a refusal to introduce a 39-hour week; lack of interest in the introduction of collective flexible working time arrangements on the terms set by Law 2874/2000 (GR0104104N); and interest in implementing individual agreements between employees and employers, bypassing the process of collective bargaining. As regards the possibility created by Law 2874/2000 of reducing the cost of overtime exceeding maximum working hours and extending special types of overtime, the position of companies is said to be divided and rather negative in the face of such a prospect.

Job security

In 2002, as in previous years, the issue of job security did not occupy a central position in collective bargaining at any level. However, there were two notable agreements - one at sectoral and one at enterprise level - which related to the issue of job protection. The new sectoral agreement for journalists (GR0205101N) commits employers to refraining from collective dismissals and prolongs an existing provision that states that changes in ownership of newspapers will not affect journalists’ employment rights and that, in such cases, their employment relationship will not be considered to have been interrupted. At enterprise level, an innovative collective agreement was concluded at the Hilton hotel in Athens, relating to the temporary closure of the hotel. The accord provides for a continued employment relationship, with a degree of wage compensation, for many of the hotel's employees, and commits the company to not making use of a clause allowing it to dismiss 2% of its workforce a month until the hotel begins to operate once more (GR0201115F).

Equal opportunities and diversity issues

2002 saw little in the way of collective bargaining (or legislative activity) on equality of opportunity for women and men. In October, the Research Centre for Gender Equality (KETHI) conducted a study on 'equal pay between men and women in collective bargaining' (GR0212103F) which found that the content of collective agreements in Greece is rather poor in this area, and that collective bargaining does not work as a measure to promote equal pay, though there are examples of collective agreements that have contributed to reducing the gender pay gap. A survey carried out on behalf of the European Greek Women Journalists' Network in February (GR0204106N) found that female journalists in Greece face low rates of participation in the labour market, low pay, insecurity about the future, obstacles to professional development, fear of dismissal for gender-related reasons and an increase in incidents of sexual harassment.

Legislative developments

In July 2002, a Presidential Decree was issued on the safeguarding of employees’ rights in transfers of undertakings, in order to transpose the amended EU Directive (98/50/EC) on this issue (GR0211101N) - trade unions subsequently called for improvements to this legislation (GR0209105N). Otherwise, no significant legislation was adopted during 2002 in the areas of employment and industrial relations. The main initiatives were primarily the preparation of draft bills or presidential decrees due to be taken forward during 2003. Examples included a draft bill from the Ministry of Labour and Social Security on the right of workers to take annual leave as soon as they begin working for an employer, and a draft Presidential Decree on 'regulations for workers with fixed-term contracts', aimed at transposing the EU fixed-term contracts Directive (1999/70/EC), whose implementation is a major demand for trade unions (GR0207101N). The submission during 2003 of a comprehensive draft bill on labour relations was discussed in 2002.

The organisation and role of the social partners

At its 31st conference in November 2002, the Greek General Confederation of Labour (GSEE) took a number of important decisions on organisational restructuring (GR0212102F). There will be closer cooperation and, it is planned, eventual merger (within the next five years) with the Confederation of Public Servants (ADEDY), along with greater coordination between GSEE member organisations at regional, prefectural and sector level. The conference also adopted measures on economic independence and amended GSEE's statutes.

Industrial action

It is rather difficult to draw conclusions on the industrial action in Greece during 2002, mainly due to the lack of adequate data, a familiar problem in this area. However, in contrast with 2001 and 2000, some data are available relating to the first half of 2002, while data regarding 1998 and the first five months of 1999 were recently made public (GR0302102F). According to the available data, there were fewer strikes in 1999 than in 1998, but the number rose during 2002. Table 2 below compares industrial action in the public utilities and services and the private sectors in 1999 and 2002.

The Ministry of Labour and Social Security is responsible for collecting the relevant data on industrial action. However, due to a lack of data breaking down strikes by sector of economic activity and their basic causes, further conclusions cannot be drawn. According to the Ministry, both the lack of overall data and the gaps in the most recent data can be attributed primarily to poor functioning of the local labour inspectorates, as well as to staff shortages.

In terms of large-scale strikes in 2002, of note was a 24-hour public servants’ strike held on 5 December over the low pay increase for public servants included in the 2003 budget (GR0212101N). The year also saw 24-hour press and media strikes due to increased tension in the sector regarding terms and conditions of employment and the extent and quality of employment (GR0203101F). However, as a whole, 2002 was not characterised by the social tension that had prevailed in previous years.

Employee participation

As in 2001, no significant developments took place in 2002 with regard to the procedures and mechanisms for worker information, consultation and participation, or the development of European Works Councils and their role. No activity was reported on national transposition of the 2002 EU Directive (2002/14/EC) on informing and consulting employees (EU0204207F) or Directive (2001/86/EC) on employee involvement linked to the European Company Statute (ECS) (EU0206202F).

Telework

2002 saw no specific response in Greece to the agreement on telework signed in July 2002 by the EU-level central social partners (EU0207204F), which is to be implemented by the national social partners in the Member States (by July 2005). No data are available on the recent development of telework in Greece. In general, the incidence of teleworking is still at a very low level, due to the limited use of new technologies in Greece compared with the rest of Europe.

Vocational training

The 'joint framework of actions for the lifelong development of competencies and qualifications ' agreed by the EU-level social partners in March 2002 (EU0204210F) does not yet seem fully to have engaged the interest of the social partners in Greece. However, GSEE, which was reportedly only apprised of the existence of the relevant agreement in November 2002, noted the following in its response to a questionnaire from the European Trade Union Confederation (ETUC):

• INE/GSEE-ADEDY informs many trade unions, employees and employers about the four priorities contained in the EU framework, by making relevant interventions in seminars and conferences at national and regional level;
• the text of the EU framework has not been translated into Greek;
• no special events have been organised in respect of the EU framework, but it has been presented at two tripartite workshops on the certification of non-formal and lifelong learning;
• employers, public authorities and some trade unions are not yet ready to take special initiatives in relation to the framework;
• the participation of ETUC representatives would be helpful if they could transfer international experience on such issues to the national or regional level;
• some points of the framework, and especially the four priorities it contains, have been discussed in formal and informal meeting and committees at national and sectoral level;
• aspects of the framework are being implemented to a certain degree through joint experimentation under the EU Equal initiative. Employers, employees, public authorities and local agencies have established three partnerships -a certification system for non-formal learning, certification of distance-learning, and attempts to establish a qualified consultancy network to aid unemployed people.

New forms of work

According to the findings of a 2002 survey carried out by INE/GSEE-ADEDY (GR0210102F), open-ended, full-time employment still constitutes the main form of employment in Greece, making up at least 80% of paid employment. However, in recent times this has partially given way to a variety of forms of flexible employment. Of these, temporary employment (including fixed-term contracts and seasonal work) represents the largest proportion of employees (15%). Part-time employment remains at low levels (4%), and does not show significant prospects for growth. The use of telework and hiring-out of labour (ie temporary agency work) is currently limited to particularly small areas of the labour market, but with a clear tendency to increase. The flexibility practice most frequently used by companies is contracting/subcontracting, used by a quarter of companies, with tendencies towards a further increase. For about half the firms using this practice, it meets their standing needs, replacing a significant part of employment in these companies.

A specific development of significance in 2002 was a July decision by Greece's National Commission on Human Rights (EEDA), recommending the re-examination of the institution of 'leasing' employees through temporary work agencies (GR0210101N). The decision questions the constitutionality of the recently created legislative framework for temporary work agencies (GR0111101F) and proposes measures for the effective monitoring of the existing legislation by the competent bodies.

Other relevant developments

A number of fatal workplace accidents during 2002, including at Olympic Games worksites, raised concerns over Greece's increasing level of accidents at work among the government, the social partners and public opinion (GR0211103F). According to the available data, the measures taken to address the problem have been limited compared with the extent of workplace accidents, and fatal workplace accidents in particular. Initiatives taken by the trade unions and the state in response to major accidents during the first half of 2002 - unions took strike action at a number of workplaces affected by major accidents and called for tighter regulation, while the government took a number of measures and promised new legislation - are seen by critics as a rather piecemeal reaction. However, the keeping of more systematic records regarding the problem by the Corps of Labour Inspectors (SEPE) is seen as a positive measure. This is a coordinated effort, which began in 2000 and is mainly aimed at investigating the causes and conditions that lead to accidents at work, so that the appropriate measures can be taken to avoid accidents in future.

Outlook

The preparation and promotion of a comprehensive draft bill on labour relations is expected to be at the centre of developments in 2003. According to government statements, the orientation will be towards increased flexibility, with an emphasis on promotion of part-time employment in the public sector. Another important development concerns the creation of a legislative framework to regulate the terms and conditions of workers with fixed-term contracts, a question that has already caused major social tension. Another item of interest is the creation of a permanent national forum on employment and labour relations, a joint initiative of the government and the social partners in the framework of the 2002 National Action Plan for employment. This structure is expected to be enacted in law in the near future. (Eva Soumeli, INE/GSEE-ADEDY)