Protection of Wages Convention, 1949 (No. 95) - Greece (RATIFICATION: 1955)

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Article 12 of the Convention. Regular payment of wages. Final settlement of wages upon termination of employment. Further to its previous comments on these matters, the Committee notes the statistical information provided by the Government in its report regarding the number of fines imposed, complaints received and labour disputes handled which related to the non-payment of wages in the period 2014–16. The Committee also notes that the country successfully exited the European Stability Mechanism programme in August 2018. The Committee requests the Government to continue to provide updated information on the number of fines imposed, complaints received and labour disputes handled which relate to any cases of non-payment or irregular payment of wages.

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The Committee notes the observations of the Greek General Confederation of Labour (GSEE) received on 31 August 2016 according to which there has been no progress regarding the application of the Convention as none of the legislative provisions which were found incompatible with the Convention have been modified or repealed. The GSEE expresses serious concerns about the number of workers suffering wage arrears and the operation and financial stability of the wage guarantee fund (operating under Manpower Employment Organisation – OAED). The Committee requests the Government to provide comments without delay in relation with these observations.

The Committee takes note of the adoption on 16 December 2015 of the Law No. 4354/2015 introducing wage adjustments and other emergency provisions for the purposes of implementing the budgetary objectives of the Structural Reform Agreement, which amends the Law No. 4093/2012 introducing emergency measures implementing Law No. 4046/2012 and approving the medium-term fiscal strategy 2013–16. The Committee will review the impact of the Law No. 4354/2015 on the application of the Convention in its next meeting.

The Committee further notes that the Government’s report has not been received. It is therefore bound to repeat its previous comments.

Article 12. Timely payment of wages. Prompt settlement of wages upon termination of employment. In its previous comment, the Committee urged the Government to continue to take active steps in order to prevent the spread of problems of non-payment or delayed payment of wages. In addition, concerned about the wage cuts in the public sector and the reduction of the national minimum wage, the Committee urged the Government to fully consult the representative employers’ and workers’ organizations before the adoption of any new austerity measures. The Committee notes the information provided by the Government in its report concerning ongoing difficulties experienced in the timely payment of wages. In particular, it notes the data collected by the Labour Relations Units of the Labour Inspectorate (SEPE) on cases of non-payment or delayed payment of wages in 2013 and 2014. According to this information, while the complaints submitted for non-payment of earnings has sharply decreased in 2014 compared to 2013 and thus the number of fines imposed for non-payment of earnings has also decreased, the number of labour disputes for non-payment of earnings has slightly increased. While the Committee also notes the Government’s reply referring to various provisions of the Civil Code concerning the protection of workers in case of non-timely payment of wages, in view of the data provided, it considers that the current situation continues to pose difficulties for workers and their families whose income has already been substantially decreased through the implementation of austerity measures, including reduction of wages and benefits.

With respect to the wage cuts in the public sector, the Committee notes the information provided by the Government that in compliance with various recent decisions of the Council of State, the highest administrative court of Greece, and after taking into account the current financial situation and commitments of the country, it has readjusted retroactively from 1 August 2012, the special pay scale of armed and security forces officers. Furthermore, the salaries of judges and of state legal counsel permanent staff have also been increased retroactively at the level they were before Act No. 4093/2012 entered into force. In addition, since other sections of this Act have been declared unconstitutional, wage reductions for teaching and research personnel of universities which had occurred since 2012 are being reviewed and a proposal is currently being examined to readjust the special pay scale of these workers. Finally, the Government insists on the fact that it stands against austerity policies that do not respect acquired social rights and tries to implement its programme of commitments on the basis of these considerations. In this regard, the Committee notes the Government’s indication that it has recently concluded a Memorandum of Understanding with the Institutions (the “Troika”, that is, the International Monetary Fund, the European Commission and the European Central Bank) to establish an advisory committee with the participation of various experts and the contribution of the ILO and the European Parliament, with a view to introducing a new legislative framework for a series of labour issues, in line with best practices of the European Social Model. While taking note of these positive steps, the Committee requests the Government to continue to take all possible measures, legislative or otherwise, to ensure the payment of wages on time and in full, and to provide information on the results achieved in this context. It also requests the Government to continue to provide information on the development of the situation of non-payment or delayed payment of wages, including, for instance, the amount of wages in arrears and recovered. The Committee also reiterates its previous request to the Government to ensure that employers’ and workers’ representatives are fully consulted before the adoption of any measures that would have an adverse impact on workers in respect of wage protection.

The Committee hopes that the Government will make every effort to take the necessary actions in the near future.

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The Committee takes note of the information provided by the Government following its previous comments concerning wage claims as privileged debts in bankruptcy proceedings (Article 11 of the Convention).

Article 12. Timely payment of wages. Prompt settlement of wages upon termination of employment. In its previous comment, the Committee urged the Government to continue to take active steps in order to prevent the spread of problems of non-payment or delayed payment of wages. In addition, concerned about the wage cuts in the public sector and the reduction of the national minimum wage, the Committee urged the Government to fully consult the representative employers’ and workers’ organizations before the adoption of any new austerity measures. The Committee notes the information provided by the Government in its report concerning ongoing difficulties experienced in the timely payment of wages. In particular, it notes the data collected by the Labour Relations Units of the Labour Inspectorate (SEPE) on cases of non-payment or delayed payment of wages in 2013 and 2014. According to this information, while the complaints submitted for non-payment of earnings has sharply decreased in 2014 compared to 2013 and thus the number of fines imposed for non-payment of earnings has also decreased, the number of labour disputes for non-payment of earnings has slightly increased. While the Committee also notes the Government’s reply referring to various provisions of the Civil Code concerning the protection of workers in case of non-timely payment of wages, in view of the data provided, it considers that the current situation continues to pose difficulties for workers and their families whose income has already been substantially decreased through the implementation of austerity measures, including reduction of wages and benefits.

With respect to the wage cuts in the public sector, the Committee notes the information provided by the Government that in compliance with various recent decisions of the Council of State, the highest administrative court of Greece, and after taking into account the current financial situation and commitments of the country, it has readjusted retroactively from 1 August 2012, the special pay scale of armed and security forces officers. Furthermore, the salaries of judges and of state legal counsel permanent staff have also been increased retroactively at the level they were before Act No. 4093/2012 entered into force. In addition, since other sections of this Act have been declared unconstitutional, wage reductions for teaching and research personnel of universities which had occurred since 2012 are being reviewed and a proposal is currently being examined to readjust the special pay scale of these workers. Finally, the Government insists on the fact that it stands against austerity policies that do not respect acquired social rights and tries to implement its programme of commitments on the basis of these considerations. In this regard, the Committee notes the Government’s indication that it has recently concluded a Memorandum of Understanding with the Institutions (the “Troika”, that is, the International Monetary Fund, the European Commission and the European Central Bank) to establish an advisory committee with the participation of various experts and the contribution of the ILO and the European Parliament, with a view to introducing a new legislative framework for a series of labour issues, in line with best practices of the European Social Model. While taking note of these positive steps, the Committee requests the Government to continue to take all possible measures, legislative or otherwise, to ensure the payment of wages on time and in full, and to provide information on the results achieved in this context. It also requests the Government to continue to provide information on the development of the situation of non-payment or delayed payment of wages, including, for instance, the amount of wages in arrears and recovered. The Committee also reiterates its previous request to the Government to ensure that employers’ and workers’ representatives are fully consulted before the adoption of any measures that would have an adverse impact on workers in respect of wage protection.

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Article 11 of the Convention. Wage claims as privileged debts in bankruptcy proceedings. The Committee recalls that, in its last observation, it noted that a wage guarantee institution was a useful complement to the privileged protection of wage claims afforded by this Article of the Convention and requested the Government to provide additional information on the impact the current economic crisis might have had on the operation of the fund. In its latest report, the Government does not provide any new information on this point. The Government’s report does not clarify how the wage guarantee fund is currently operating in practice, and whether any problems are encountered. The Committee reiterates its previous request to provide up to date information on the operation of the wage guarantee fund with particular attention to the impact caused by the current economic and financial crisis and various austerity measures implemented in response to the crisis, including, for instance, the information on the fund’s financial stability and the number and percentage of workers of bankrupt companies who benefitted from the payment from the fund of the unpaid portion of their wages.

Article 12. Timely payment of wages. Prompt settlement of wages upon termination of employment. In its previous comment, the Committee urged the Government to continue to take active steps in order to prevent the spread of problems of non-payment or delayed payment of wages. In addition, concerned about the wage cuts in the public sector and the reduction of the national minimum wage, the Committee urged the Government to fully consult the representative employers’ and workers’ organizations before the adoption of any new austerity measures, to avoid any new curtailment of workers’ rights in respect of wage protection, and to seek to restore the purchasing power of workers’ wages. It also requested to provide a comprehensive report on all wage-related measures adopted in the context of the financial crisis, any tripartite consultations held prior to their adoption and on the social impact of those measures.

The Committee notes the information provided by the Government in its report concerning ongoing difficulties experienced in the timely payment of wages. In particular, it notes the information on the number of cases of fines, complaints, and labour disputes, as recorded by the labour inspectorate (SEPE) on cases of non-payment or delayed payment of wages between 2011 and April 2013. According to this information, 10.2 per cent of all cases of fines, and 75 per cent of labour disputes, are related to non-payment or delayed payment of wages. The Committee also notes the Government’s indication that the cases of non-payment or delayed payment of wages and holiday pay, allowances and bonuses are steadily increasing. In this connection, it notes the report on the results of a survey conducted by the Small Enterprises’ Institute (IME) of the Hellenic Confederation of Professionals, Craftsmen and Merchants (GSEVEE). In particular, the findings indicate that 51.4 per cent of the surveyed enterprises face difficulties in the timely payment of wages. 43.2 per cent of the respondent companies owe contributions to the Self-employed Insurance Organisation (OAEE) and 22.6 per cent, to the social security fund. These enterprises are facing difficulties also with meeting tax obligations and payment for public utilities.

The Committee notes the Government’s reply referring to various provisions of the Civil Code concerning the protection of workers in case of non-timely payment of wages, but they do not appear to provide for the prevention of, or sanction against, non-payment or delayed payment of wages. Given the current situation described above, the Committee reiterates its serious concern over the continuation of cases of non-payment or delayed payment of wages. It considers that the current situation continues to pose difficulties for workers and their families whose income has already been substantially decreased through the implementation of austerity measures including reductions of wages and benefits. The Committee requests the Government to take all possible measures, legislative or otherwise, to ensure the payment of wages on time and in full, and to provide information on their results achieved. It also requests the Government to continue to provide information on the development of the situation of non-payment or delayed payment of wages, including, for instance, the amount of wages in arrears and recovered.

With respect to the wage cuts in the public sector, the Committee notes the information provided by the Government that public officers are no longer entitled as from 1 January 2013 to the holiday allowances and Christmas and Easter bonuses by virtue of section 1, paragraph C(C1) of Act No. 4093/2012. This is an additional element to a set of measures already in place and reported previously, which have reduced basic wages and allowances of these public sector workers. In this connection, the Committee understands that the Council of State, the highest administrative court of Greece, ruled in January 2014 that wage cuts implemented in 2012 with respect to the police and armed forces were unconstitutional, and that the workers concerned must be reimbursed. The Committee also understands that under Act No. 4172/2013, some public positions have been abolished and workers occupying these positions have been placed on so-called “non-active” or “mobility” status at reduced wage for a period of up to eight months during which the possibility of employment in another position in the public sector is sought. It also understands that this measure is expected to result in a total of 25,000 public sector workers being placed in the non-active status, and that 5,000 public officers will retire or be dismissed. The Committee observes that these measures, although they are part of efforts to reduce the national budget, have an extensive negative effect over the standard of living of public workers, who will receive reduced wages and allowances and no holiday allowances.

With respect to the national minimum wage, the Committee notes the information provided by the Government in its report on the new mechanism for fixing the national minimum wage rates provided for under Act No. 4172/2013, which, according to the Government, strengthened the role of social partners. The Committee notes, however, the Government’s indication that the new mechanism will enter into force after the implementation of the fiscal adjustment programmes, that is, not before 1 January 2017. Until then, the rates prescribed under the Act of the Council of Ministers No. 6 of February 2012 will continue to apply, which reduces the previous rates by 22 per cent for workers of 25 years of age or older and by 32 per cent for workers younger than 25 years of age.

With respect to tripartite consultations on wage-related matters, the Committee notes the Government’s references to other activities such as holding tripartite workshops on social dialogue and conclusion of agreements between the Government and the ILO on various projects. While these initiatives are welcome steps in a broader context of achieving job-rich recovery from the current difficult economic situation, they are not specifically related to tripartite consultation prior to the adoption of any new austerity measures.

As the abovementioned measures reported by the Government are yet to be operationalized or to achieve results through specific activities, the Committee requests the Government to contemplate adopting additional measures to avoid further adverse impact on workers in respect of wage protection. The Committee also reiterates its previous request to the Government to ensure that employers’ and workers’ representatives are fully consulted before the adoption of any new austerity measures. The Government is also requested to continue to provide information on any measures taken or envisaged on these matters and the results achieved.

[The Government is asked to reply in detail to the present comments in 2015.]

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Article 11 of the Convention. Wage claims as privileged debts in bankruptcy proceedings. Further to its previous comment concerning the functioning of the wage guarantee fund, the Committee notes the Government’s explanations about the legal framework regulating its operation, i.e. Act No. 1836/89 and Presidential Decree No. 1/1990 as well as Presidential Decrees No. 151/1999 and No. 40/2007 issued to align the national legislation with relevant EU Directives. The Government indicates that the wage guarantee fund is operated by the management Board of the Manpower Employment Organization (OAED) and is financed through a compulsory employers’ contribution, currently set at 0.15 per cent of the worker’s remuneration, and a state subsidy. The Fund principally covers claims for up to three months’ unpaid wages arising from a contract of employment and falling within the six month period prior to the publication of a court ruling declaring the employer bankrupt. The Government’s report also provides statistical data on the expenditure and number of beneficiaries of the Fund for the period 2000–10. According to these statistics, in 2009, the Fund paid a total amount of €1.44 million to 148 beneficiaries while in 2010, a total of €2.57 million were paid to 530 beneficiaries. Noting that a wage guarantee institution is a useful complement to the privileged protection of wage claims afforded by this Article of the Convention, the Committee requests the Government to provide additional information, including statistics if available, on the impact the current economic crisis might have on the operation of the fund, particularly as regards its financial sustainability in view of the increasing number of bankruptcies, and any measures taken or envisaged in this respect such as the possible readjustment of the level of the employers’ contribution.

Article 12. Timely payment of wages. Prompt settlement of wages upon termination of employment. In its previous comment, the Committee had asked the Government to communicate information on any difficulties experienced in the timely payment of wages, indicating among others the number of workers and the sectors concerned, based on information that problems of non-payment or delayed payment of wages may rise as a result of widespread insolvencies and lack of liquidity. The Committee notes that the Government’s report is silent on this point. It observes, however, that according to several sources, the country is experiencing growing difficulties with the regular payment of wages and situations of accumulated wage arrears are reported in several sectors of activity. The Committee notes, for instance, that according to the 2011 activity report of the Labour Inspectorate (SEPE), published in April 2012, the non-payment of wages represents 68.8 per cent of all labour law infringements observed in 2011 and the non-payment of annual holiday pay 20.6 per cent, that is a marked increase compared to 2010 when 50.5 per cent of all violations related to delayed payment or non-payment of wages, 14.8 per cent to non-payment of holiday pay and 5.6 per cent to non-payment of end-of-year bonus. The SEPE report also shows that by reference to the number of reports filed and amount of fines imposed, the situation appears to concern mostly the sectors of retail commerce, restaurants and catering, construction, hotels, and the food industry.

The Committee understands that the deepening economic and social crisis in the country impacts heavily on the business climate and under the circumstances problems of non-payment of wages can only be expected to persist, if not increase. The Committee notes, for instance, that according to a research conducted by the Institute of Small Enterprises (GSEBEE) and published in January 2011, 84.2 per cent of the enterprises reported that their financial situation had worsened in the last semester and 68 per cent foresaw a further deterioration in the following semester. The same research indicates that 215,000 small enterprises (25.9 per cent) were likely to close down with a total loss of 320,000 jobs. According to another report published by the Institute of Commerce and Services (INEMY) in September 2011, 25 per cent of all registered commercial enterprises had ceased their activities by August 2011, as compared to 15 per cent in the summer of 2010.

The Committee expresses its deep concern about the marked intensification of infringements of the labour legislation concerning the regular payment of wages and urges the Government to continue to take active steps in order to prevent the spread of problems of non-payment or delayed payment of wages, such as the reinforcement of controls, the strengthening of sanctions, or the use of appropriate incentives. In this connection, the Committee requests the Government to provide detailed information on the effectiveness of the system of enforcement and compliance following the labour inspectorate reform of 2009.

Furthermore, the Committee recalls that in its previous observation it had also raised the question of considerable wage cuts in the public sector decided as part of the austerity measures to reduce public deficit and had asked the Government to give a detailed account on any new anti-crisis measures affecting wages, including on the necessary consultations with the employers’ and workers’ organizations concerned. While noting that the Government’s report does not contain any new information on this point, the Committee understands that additional fiscal measures have been adopted in November 2012 under the Memorandum of Understanding on the Medium-Term Fiscal Strategy 2013–16 (Memorandum III), including further cuts of up to 35 per cent in the monthly wages of employees under special wage regimes such as judges, diplomats, doctors, professors, members of the armed forces and police, and airport personnel and the elimination of seasonal bonuses of employees of the state and local governments. The new measures are part of fresh budget cuts deemed necessary to ensure the country receives its next bailout instalment from its international creditors.

The Committee understands that the successive rounds of harsh austerity measures are decided under the overall guidance of the European Commission, the European Central Bank (ECB) and the International Monetary Fund (IMF) which have been advising the Government since May 2010 on planning a broad range of reforms for raising the competitiveness of the national economy and the modernization of the public administration. It also understands that most of these measures are meant to reduce an alarmingly high public deficit. The Committee remains seriously concerned, however, about the cumulative effect these measures have on workers’ income level and living standards and compliance with labour standards related to wage protection. As the Committee has already indicated in its previous observation, wage reductions as such are not dealt with in any of the provisions of Convention No. 95. However, when by their nature and scale wage reductions have dramatic effects on large parts of the workforce to the point of rendering practically meaningless the application of most of the provisions of the Convention, the Committee feels obliged to address the situation through the lens of “wage protection” in a broader sense.

In a related development, the national minimum wage was recently reduced by 22 per cent and even by 32 per cent for workers below the age of 25. Available statistics suggest that the continued downward pressure on wages may result in one fourth of the population falling below the poverty line. According to the 2012 annual report on the Greek economy and employment, published by the Labour Institute of the Greek General Confederation of Labour (GSEE) in August 2012, the purchasing power of the average wage has shrunk to 2003 levels and that of the minimum wage has slumped to the level of the second half of the 1970s. In the light of such developments, the Greek National Commission for Human Rights, in its capacity as an advisory body to the Government in matters of human rights protection, has issued a recommendation in December 2011 expressing its deep concern at, among others, the ongoing drastic reductions in even the lower salaries and pensions.

Under the circumstances, while acknowledging the crucial challenges faced by the country, the Committee recalls the Government’s responsibility to strengthen – and not to undermine – labour standards related to wage protection, especially at times of crisis when social justice and income security are dearly needed. As the European Committee of Social Rights has concluded in a recent case (complaint No. 65/2011 filed by the General Federation of the National Electric Power Corporation and the Confederation of Greek Civil Servants’ Trade Unions, Decision of 23 May 2012), “the economic crisis should not have as a consequence the reduction of the protection of the rights recognized by the [European Social] Charter” and “while it may be reasonable for the crisis to prompt changes in current legislation and practices in order to restrict certain items of public spending or relieve constraints on businesses, these changes should not excessively destabilize the situation of those who enjoy the rights enshrined in the Charter”.

The Committee also draws attention to the importance of open and continuous dialogue with the social partners. As the Committee noted in paragraph 374 of its 2003 General Survey on protection of wages, social dialogue is the only way of sharing the burden of economic reforms while preserving social peace and negotiated solutions have a much better chance of succeeding in a context where social consensus is the only solid basis for the continuation of painful structural changes. The Committee wishes to refer, in this connection, to the conclusions of the Committee on Freedom of Association, approved by the Governing Body in November 2012, following a complaint filed by several trade union confederations against the Government of Greece (Case No. 2820), according to which the Government should promote permanent and intensive social dialogue as it would be essential to the efforts for social peace in the country that consultations take place with the employers’ and workers’ organizations concerned, as a matter of urgency, to review any austerity measures with a view to discussing their impact and to agreeing on adequate safeguards for the protection of workers’ living standards (365th Report of the Committee on Freedom of Association, paragraphs 989–990). The Committee accordingly urges the Government to fully consult the representative organizations of employers and workers before the adoption of any new austerity measures and to make every possible effort to avoid any new curtailment of workers’ rights in respect of wage protection in either the public or the private sector and to seek to restore the purchasing power of the wages that has been drastically diminished. The Committee requests the Government to provide a comprehensive report on all wages-related measures adopted in the last three years, the scope of any tripartite consultations held prior to their adoption, and their social impact.

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

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Article 11 of the Convention. Wages as privileged debts. In its previous observation, the Committee had noted the comments of the Greek General Confederation of Labour (GSEE), which drew attention to section 41 of Act No. 3863/2010 granting the same rank of privilege to workers’ wage claims and to those of social security institutions. The GSEE referred to the Protection of Workers’ Claims (Employer’s Insolvency) Convention, 1992 (No. 173) – which requires workers’ claims to be given a higher rank of privilege than most other privileged claims, and in particular those of the State and the social security system – as being the international minimum standard and considered that the Government contravened its obligation to secure full payment of workers’ claims before other ordinary creditors establish any claim to a proportionate share of the employer’s assets. The Committee notes that, in its reply to the GSEE comments, dated 16 May 2011, the Government makes no reference to the revised order of distribution of liquidated assets, which effectively reduces the practical value of privileged protection of workers’ claims to the extent that these claims and those of the social security system now rank equally between themselves.

The Committee recalls, however, that Article 11(3) of the Convention requires only that the relative priority of wages and other privileged debts is to be determined by national laws or regulations, and further that Greece has not ratified Convention No. 173, and is therefore not bound by the provisions of Article 8(1) of that Convention, which give a higher priority to workers’ claims than to those of the social security system. Also, the Committee notes that a wage guarantee fund – similar to that envisaged by Part III of Convention No. 173 – has been established under Presidential Decree No. 1/1990. In view of the potentially important role of this fund in the context of the major economic crisis facing the country, the ILO high-level mission, which took place in September 2011, noted in its conclusions that the Government was requested to provide additional information on the functioning of the wage guarantee fund but it seems that such information has not been provided so far. The Committee asks the Government to provide detailed information on the operation of the wage guarantee fund, particularly the number of claims received and amounts paid since the beginning of the current crisis.

Article 12. Timely payment of wages – Prompt settlement of wages upon termination of employment. The Committee notes the reference made in the report of the ILO high-level mission to a potential problem of non-payment or delayed payment of wages as a result of widespread insolvencies and lack of liquidity. According to information obtained by the high-level mission, while small and medium-sized enterprises (SMEs) represent the vast majority of undertakings and account for a major part of employment in the country, 150,000 of them (one in four) have closed down and another 100,000 are expected to close this year. In the public sector, the high-level mission was informed that retroactive measures had been taken by the Government in certain instances, including the case of a former public institution that had maintained public sector wages through collective bargaining after its privatization, whose employees were obliged to pay back the difference in the salaries paid over the last ten years. The Committee notes that, according to several accounts, instances of several months’ delay in the payment of wages are rising in sectors such as industry, commerce and health care. The Committee wishes to recall in this regard that, in its General Survey of 2003 on the protection of wages (paragraph 355), it highlighted that “the quintessence of wage protection is the assurance of a periodic payment allowing the worker to organize his everyday life with a reasonable degree of certainty and security. Inversely, the delayed payment of wages or the accumulation of wage debts clearly contravene the letter and the spirit of the Convention and render the application of most of its other provisions simply meaningless.” The Committee therefore asks the Government to provide documented information on any difficulties experienced in the timely payment of wages, in particular the sectors of activity concerned, the number of workers concerned and the amounts due, and to specify any measures taken or envisaged in order to tackle these problems, including the question of retroactive reimbursement of wages already received.

Furthermore, the Committee notes that in its comments the GSEE referred to section 75 of Act No. 3863/2010, which authorizes the payment of severance pay in instalments rendering it uncertain and precarious especially in times of financial crisis. In its reply, the Government indicates that part of the severance pay – equal to two months’ remuneration – is payable at the time of dismissal and the remaining amount in two monthly instalments, each of which cannot be less than two months’ remuneration. The Government also explains that this arrangement aims at facilitating undertakings facing crucial financial problems due to the financial crisis and wishing to make redundancies so that they might avoid bankruptcy. The Committee observes that the possibility of paying the severance pay in instalments may, in some cases – particularly in an environment of recession and widespread liquidity problems – compromise the full and prompt payment of termination benefits and thus limit the workers’ right to receive without delay upon termination of employment all sums due to them. The Committee accordingly asks the Government to indicate any measures taken or envisaged to ensure that the high numbers of workers who are being dismissed at the present difficult juncture collect swiftly all entitlements due to them.

More generally, the Committee is concerned about the considerable wage cuts in the public sector decided as part of the austerity measures to reduce the public deficit. According to information obtained by the high-level mission, wages have been reduced through legislative measures by at least 20 per cent, while according to the Confederation of Greek Public Servants’ Unions (ADEDY), almost 40 per cent of public employees’ income has vanished within the last two years. The Committee considers that by their scale and recessionary effect on the entire economy, these wage cuts represent a major challenge to the notion of wage protection that is at the heart of the Convention and risk undermining its basic objectives (even though, in a strictly legal sense, compliance with the technical standards of the Convention that deal with the modalities of the payment of wages may not be at issue). In this connection, the Committee recalls its Note on the “Relevance and application of ILO wage-related Conventions in the context of the global economic crisis” (paragraph 119 of the Committee’s 2010 Report, page 35), in which it emphasized that wage protection takes on particular importance in times of crisis and therefore relevant standards should not be undermined but rather put at the centre of crisis responses, as is underlined in the Global Jobs Pact. It also considered that ILO wages-related standards and principles serve as a reminder of the special nature of wages as the workers’ principal, if not sole, means of subsistence, and hence of the need for targeted and priority action in this field, and expressed the hope that ILO member States would act positively in the economic downturn by carrying out the necessary reforms in wage legislation and wage policy consistent with those standards and principles. The Committee also recalls that the Global Jobs Pact insists that action for promoting recovery and development must be guided by the Decent Work Agenda and invites governments to avoid protectionist solutions as well as the damaging consequences of deflationary wage spirals and worsening working conditions in their response to the crisis, and to engage in social dialogue. The Committee accordingly requests the Government to provide full particulars on any new anti-crisis measures and policies that impact on wages, including information on the necessary consultations with the employers’ and workers’ organizations concerned on these measures.

[The Government is asked to reply in detail to the present comments in 2012.]

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Article 11 of the Convention. Wages as privileged debts. The Committee refers to its comments under the Right to Organise and Collective Bargaining Convention, 1949 (No. 98), with regard to the observations communicated by the Greek General Confederation of Labour (GSEE) with the support of the International Trade Union Confederation (ITUC) and the European Trade Union Confederation (ETUC) on the impact of the measures introduced in the framework of the mechanism to support the Greek economy. The GSEE refers to important reductions and cuts in the wages of all workers under private law contracts employed in the public and private sectors and draws specific attention to section 41 of Act No. 3863/2010, by which claims of social security institutions in insolvency proceedings are granted the same rank of privilege as workers’ wage claims. These institutions are now considered equally and proportionally as privileged creditors with regard to their right to be paid out of the liquidated assets of the insolvent employer. According to the GSEE, such preferential treatment of claims of social security institutions does not correspond to the State’s obligation to secure full payment of workers’ claims that derive from their employment, before other ordinary creditors establish any claim to a proportionate share of the employer’s assets. Reference is made, in this respect, to the Protection of Workers’ Claims (Employer’s Insolvency) Convention, 1992 (No. 173), which requires workers’ claims to be given a higher rank of privilege than most other privileged claims, and in particular those of the State and the social security system and which, according to the GSEE, constitutes an international minimum standard that must be respected. In addition, the GSEE refers to section 75 of Act No. 3863/2010, which provides that, upon termination of employment, severance pay may be paid in bi-monthly instalments each corresponding to two months’ wages, and considers that the payment of an amount with such a critical survival function for workers and their families becomes uncertain and precarious. The Committee will examine the comments by the GSEE along with the Government’s reply thereto at its next session.

[The Government is asked to reply in detail to the present comments in 2011.]

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Further to its previous observations, the Committee notes the explanations provided by the Government concerning the application of Articles 4 and 7 of the Convention. It notes in particular that section 653 of the Civil Code in its current reading provides that “an employer is bound to pay the customary or agreed salary” no longer making reference to payment of wages in kind. It also notes that, according to the Government’s report, remuneration levels are determined through collective bargaining and that no labour collective agreement provides for the payment of wages in kind with the exception of certain allowances in kind which may only be granted in addition to, and not in substitution of even part of, the statutory wages. The Committee is satisfied that, under the terms of certain collective agreements concluded at the national, branch or enterprise levels that it has had the opportunity to consult, provision is made for allowances in kind
(e.g. protective clothing or foodstuffs) but with the express caveat that the cash value of those allowances may not be counted in or otherwise deducted from collectively agreed pay.

In addition, the Committee notes the explanations with respect to outlet stores established within certain factories, which offer goods at prices lower than other department stores, as publicly monitored by the Price Control Service, and which are operated for the benefit of all consumers including the workers employed in the factories concerned.

Finally, the Committee notes the information provided by the Government concerning the practical application of the Convention, in particular the monetary fine provided for those employers violating the rules on remuneration laid down by labour collective agreements as well as the statistical data of the Labour Inspectorate Body (SEPE) according to which as much as 71.2 per cent of all complaints concern non-payment of wages for work already performed. The Committee would appreciate if the Government would continue to provide, in accordance with Part V of the report form, up to date information on the application of the Convention in practice.

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The Committee notes that the Government’s report has not been received. It must therefore repeat its previous observation which read as follows:

Further to its previous observations concerning the application of Articles 4 and 7 of the Convention, the Committee notes the Government’s explanations, in particular the reference to article 653 of the Civil Code which, according to the Government’s report, explicitly takes up the provisions of the Convention in respect of the payment of wages in kind. The Committee is inclined to believe, however, that the quoted text is part of a commentary, possibly from an annotated edition of the Civil Code, rather than the actual text of article 653 of the Civil Code. It would therefore request the Government to provide in its next report further clarifications on this point and to transmit a copy of the legislative text in question. The Committee wishes to refer in this connection to paragraph 510 of its 2003 General Survey on protection of wages in which it expressed the view that some of the provisions of the Convention require specific practices to be prohibited or to be regulated in a particular manner and thus call for legislative action to this effect, while others merely require certain practices to be followed and thus seem to leave scope for implementation by various means, including custom or practice. Recalling that the provisions of Article 4, paragraphs 1 and 2, and Article 7, paragraph 2, of the Convention are not self-executing and therefore require the competent authorities to take appropriate measures to ensure their observance, the Committee hopes that the Government will make every effort to take the necessary action and bring its legislation into conformity with the Convention. Finally, the Committee would appreciate if the Government could provide, in accordance with Part V of the report form, general information on the practical application of the Convention, including any difficulties encountered with respect to the timely payment of wages, extracts from labour inspection reports, copies of any official publications or studies relating to the questions dealt with in the Convention as well as any other particulars bearing on the implementation and enforcement of the Convention.

The Committee hopes that the Government will make every effort to take the necessary action in the very near future.

CMNT_TITLE

Further to its previous observations concerning the application of Articles 4 and 7 of the Convention, the Committee notes the Government’s explanations, in particular the reference to article 653 of the Civil Code which, according to the Government’s report, explicitly takes up the provisions of the Convention in respect of the payment of wages in kind. The Committee is inclined to believe, however, that the quoted text is part of a commentary, possibly from an annotated edition of the Civil Code, rather than the actual text of article 653 of the Civil Code. It would therefore request the Government to provide in its next report further clarifications on this point and to transmit a copy of the legislative text in question. The Committee wishes to refer in this connection to paragraph 510 of its 2003 General Survey on protection of wages in which it expressed the view that some of the provisions of the Convention require specific practices to be prohibited or to be regulated in a particular manner and thus call for legislative action to this effect, while others merely require certain practices to be followed and thus seem to leave scope for implementation by various means, including custom or practice. Recalling that the provisions of Article 4, paragraphs 1 and 2, and Article 7, paragraph 2, of the Convention are not self-executing and therefore require the competent authorities to take appropriate measures to ensure their observance, the Committee hopes that the Government will make every effort to take the necessary action and bring its legislation into conformity with the Convention. Finally, the Committee would appreciate if the Government could provide, in accordance with Part V of the report form, general information on the practical application of the Convention, including any difficulties encountered with respect to the timely payment of wages, extracts from labour inspection reports, copies of any official publications or studies relating to the questions dealt with in the Convention as well as any other particulars bearing on the implementation and enforcement of the Convention.

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The Committee notes the information supplied by the Government in response to its previous observation.

Article 4 of the Convention. The Committee recalls that, according to the Government, Act No. 1876/90 provides for wages to be fixed by free collective bargaining in which the State does not intervene. In its last report, the Government indicates that certain collective agreements provide that employers must offer workers, over and above their wages, various allowances in kind additional to, and not counted in, their wages, such as a helmet, a pair of gloves, a work uniform or a daily or weekly amount of food. The Government also indicates that, to date, no collective agreements provide for wages to be paid in kind. It appears obvious to the Committee, however, that such payment could, theoretically, be permitted by collective bargaining. It therefore points out once again that this provision of the Convention requires legislative or regulatory measures to be adopted expressly prohibiting payment of wages totally in kind. Furthermore, where the law does allow part payment of wages in kind, it should at the same time ensure that such allowances bear a fair and reasonable value and are appropriate for the personal use and benefit of the worker and his family, as required by paragraph 2 of this Article of the Convention. In the Committee’s view, measures of this kind are the more important as the Government has itself stated in previous reports that total or partial payment of wages in kind appears still to exist in short-term employment in the agricultural sector. Consequently, the Committee trusts that the Government will be in a position to indicate, in accordance with the intention it has been stating for many years, the measures envisaged to ensure that this provision of the Convention is implemented by the adoption of laws or regulations.

Article 7. With regard to work stores, the Committee notes that they are operated like other commercial shops but sometimes charge less than market prices, that they serve not only workers, who are free to choose what they purchase there, but all consumers in general. The Committee would point out that, for the provisions of paragraph 2 of this Article to be applied, legislative or regulatory measures need to be adopted by the competent authority. The Government is therefore asked to send with its next report all the instruments or draft rules governing the operation of work stores that apply or will apply the provisions of this Article of the Convention.

[The Government is asked to reply in detail to the present comments in 2003.]

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With reference to its previous observation, the Committee notes the Government’s report.

The Committee can but note with regret that the Government is still unable to take the necessary legislative steps to give effect to the provisions of Article 4 of the Convention concerning the partial payment of wages in kind, and the provisions of Article 7, paragraph 2, concerning the prices charged in stores established and for services operated by the employer.

The Committee recalls that it has been commenting for more than 40 years on the application of these Articles and that the Government has several times stated its intention of introducing the necessary measures to bring its legislation fully into conformity with the requirements of the Convention.

The Committee notes that in its last report the Government indicates that the collective agreements in force do not provide for the payment of wages in kind. It also notes the Government’s statement that it has not been necessary to enact specific legislation concerning company stores since no complaints of this nature have been received from workers.

The Committee is bound to recall once again that the two provisions it has been commenting on for many years require specific measures by the competent authorities for implementation. Consequently, the Committee again urges the Government to do its utmost to take the necessary legislative or regulatory steps in the very near future in order to give effect to the provisions of the Convention.

[The Government is asked to report in detail in 2002.]

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In its previous observations, the Committee requested the Government to take the necessary measures to bring the relevant legislation into conformity with the provisions of Articles 4 and 7, paragraph 2, of the Convention (concerning payment of wages in kind and prices charged in works stores, respectively). It recalls that for many years the Government has been stating its intention to amend the legislation appropriately.

In regard to Article 4, the Committee notes the information to the effect that certain collective agreements, of which copies are attached to the report, provide for the allotment of certain goods such as food products, clothing, or accommodation in addition to wages in cash. The Government adds that in the agricultural sector where total or partial payment of wages in kind was traditionally in force, this practice applies only to short-term hiring due to the seasonal nature of the work and would not concern salaried employees. On this point, the Committee recalls that, by virtue of Article 2, paragraph 1 of the Convention, the Convention applies to all persons to whom wages (as defined in Article 1) are paid or payable. The Convention covers not only workers classed as "salaried employees" but also all those who receive payment, including seasonal workers in the agricultural sector.

In regard to Article 7, paragraph 2, the Government indicates that in national practice the goods in employers' stores are sold at low prices and that the labour inspectorate has found no problem concerning this system.

The Committee notes the above information. It notes that the Government's report contains no information on amendments of the legal provisions as announced previously by the Government. It requests the Government once again to indicate the necessary measures taken in order to bring the relevant legislation into conformity with the aforementioned provisions of the Convention concerning payment of wages in kind and prices charged in the stores or services established by the employer.

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Articles 4 and 7, paragraph 2, of the Convention. With reference to its previous comments, the Committee notes that owing to the political situation in the country since the June 1989 elections, the Government has been unable to take the measures previously announced, which are intended to bring the legislation into conformity with the Convention. It notes that, according to the Government, the questions outstanding have been submitted to the new Government elected in June 1990 for examination with a view to the necessary legislative measures to be taken. The Committee again recalls that since 1958 it has been raising the questions of the payment of wages in kind and the prices charged in stores or services established by the employer, referred to in these Articles of the Convention, and hopes that the Government will take the necessary measures in the near future to harmonise its legislation with the Convention.

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Articles 4 and 7, paragraph 2, of the Convention. With reference to its previous observations, the Committee notes from the Government's report that due to the volume of legislative work that it has undertaken, it has not yet been possible to complete the preparation of the Bill to bring the legislation into conformity with the above provisions of the Convention relating to the payment of wages in kind and to prices in stores or services established by the employer. The Committee recalls that these points have been raised since 1958 and hopes that the Government will take the necessary steps to bring its legislation into conformity with the Convention in the very near future.