Observation (CEACR) - adopted 2012, published 102nd ILC session (2013)

Right to Organise and Collective Bargaining Convention, 1949 (No. 98) - Greece (Ratification: 1962)

The Committee takes note of the Government’s report, as well as the comments made under article 23 of the ILO Constitution by the Greek General Confederation of Labour (GSEE) in a communication dated 16 July 2012 and by the Hellenic Federation of Enterprises and Industries (SEV) dated 16 November 2012. The Committee requests the Government to provide any observations it may wish to make on these comments.

In its previous comments, the Committee expressed the firm hope that the Government and the social partners would be able to review all of its comments in the constructive vein in which they were given, with the aim of jointly developing a common platform to advance the country in a manner which fully respected organizational rights and the promotion of free and voluntary collective bargaining responsive to the current urgencies.

The Committee observes from the latest comments of the GSEE that the Greek Parliament endorsed, on 12 February 2012, Law No. 4046 on the “Approval of the Plans for Credit Facilitation Agreements between the European Financial Stability Facility (ESF), the Hellenic Republic and the Bank of Greece, the draft Memorandum of Understanding between the Hellenic Republic, the European Commission and the Bank of Greece and other urgent provisions for reduction of public debt and recovery of the national economy”. According to the GSEE, the text of the new Memorandum of Economic and Financial Policies sets out the numerous commitments undertaken by the Greek Government including a fresh round of austerity and new permanent measures that further disintegrate fundamental labour rights and industrial relations institutions; these wide-ranging commitments are described as “complete rules of law with direct effect”. In addition, the Ministry of Labour and Social Security delivered a Circular (No. 4601/304) concerning the implementation of section 1(6) of Law No. 4046/2012. According to the GSEE, the impact of these measures is devastating for collective labour institutions, freedom of association, social dialogue as well as the principle of independent social partnership. The GSEE considers that these new permanent measures will irreversibly and harmfully compound the effect of standing measures since they demolish almost every aspect of the collective bargaining system; moreover, these measures were adopted wholly, disregarding the agreement reached by the national social partners on 3 February 2012 to respect the agreed minimum standards of work included in the National General Collective Agreement (NGCA) for the years 2010–12. The GSEE denounces that subsequently, under unprecedented pressure by the troika, the Government undertook to abolish the NGCA itself and has explicitly legislated to decrease the wage rates therein and replace them with a statutory minimum wage after July 2012; as opposed to generating jobs, the sum of the measures taken has given rise to spiralling unemployment, massive lay-offs and widespread precariousness with over-flexible low-paid jobs where women and young people are predominant.

The Government, for its part, stresses its firm commitment to the observance of international labour standards and states that the financial crisis and the international economic environment reduce the quality of labour rights, redefining the concept of core labour rights in an economically developed country, which is required to reduce the quality of life of its citizens. The loan conditions and their association with drastic restructuring of the institutional framework of industrial relations constitute an unprecedented challenge for Greece and the international community, a fact that was highlighted both by the high-level mission and the Committee of Experts. The international organizations that are offering financial aid to rescue the Greek economy have chosen the implementation of measures that will enhance labour market flexibility, as being considered the most appropriate method to enhance the competitiveness of the Greek economy. According to the Government, the measures imposed include a partial restructuring of the free collective bargaining system so that the core of trade union freedom and of collective bargaining might not be affected. The Government adds that the text of programmatic convergence of the three parties that support the newly elected Government provides: “The collective autonomy and the validity of labour collective agreements return to the level defined by the European Social Law and the acquis communitaire, according to which the level of wages in the private sector is agreed between the social partners. This also includes the setting up of minimum wage provided for by the NGCA.”

The Committee further notes the new legal framework and context described by the SEV.

The Committee takes note of the conclusions and recommendations made by the Committee on Freedom of Association when examining these same matters in light of their conformity with the principles of freedom of association (Case No. 2820, 365th Report, paragraphs 784–1003). The Committee similarly encourages the Government and the social partners to rapidly re-engage in intensive social dialogue with a view to developing a comprehensive vision for labour relations in the country and requests the Government to indicate in its next report the steps taken in this regard. The Committee once again urges the creation of a space for the social partners that will enable them to be fully involved in the determination of any further alterations within the framework of the agreements with the EC, the International Monetary Fund (IMF) and the European Central Bank (ECB) that touch upon aspects which go to the heart of labour relations, social dialogue and social peace, and trusts that the views of the social partners will be fully taken into account.

Article 4 of the Convention. Violation of the NGCA and other collective agreements. The GSEE indicates that the Government has legislatively imposed a reduction of the minimum daily/monthly wages established by the NGCA by 22 per cent compared to the level of 1 January 2012. A further reduction was made for young workers (15–25 years old) of 32 per cent. By Circular No. 4601/304, the Ministry of Labour has extended the scope of this reduction to the wages in all collective agreements. According to the GSEE, the Circular also provides that any work performed by workers between 15–18 years of age is excluded from the protective provisions of labour law and is not counted towards seniority. In addition, the minimum daily/monthly wage is subject to a freeze, contrary to raises provided for in the relevant collective agreements, until the rate of unemployment falls below 10 per cent. The clauses of the NGCA related to seniority are further suspended for indefinite duration.

The SEV explains that minimum wages will be regulated by administrative authority as from 1 April 2013, after consultation with the social partners.

While acutely aware of the grave and exceptional circumstances being experienced in the country, the Committee deeply regrets these numerous interventions in voluntary concluded agreements, including the NGCA for which the social partners, cognizant of the financial and economic challenges, declared their continuing support in February 2012. The Committee recalls, as has been said to other countries in similar situations, that if, as part of its stabilization policy, a government considers that wage rates cannot be settled freely through collective bargaining, such a restriction should be imposed as an exceptional measure and only to the extent that it is necessary, without exceeding a reasonable period, and it should be accompanied by adequate safeguards to protect workers’ living standards. While noting the gravity of the economic crisis the Committee refers to its conclusion above about the importance of a space for social dialogue and the role of the social partners in participating in the determination of measures affecting them and the labour market and urges the Government to review with them all the above measures with a view to limiting their impact and their duration and ensuring adequate safeguards to protect workers’ living standards. Noting the Government’s indication that consultations are taking place between the newly elected Government and the social partners with the aim of signing the new NGCA, the Committee requests the Government to indicate in its next report the progress made in this regard and trusts that any mechanism for the determination of wages will ensure that the social partners can play an active role.

As regards its previous comments concerning collective agreements in the banking sector on supplementary pension funds raised by the Greek Federation of Bank Employee Unions (OTOE), the Committee once again requests the Government to indicate the steps taken to bring the parties together with a view to achieving a mutually acceptable agreement.

As regards the GSEE reference to the Government’s enforcement of a maximum duration of three years for collective agreements and the mandatory expiry of collective agreements (those already in place over 24 months shall have a residual duration of one year), the Committee does not consider that imposing a three year maximum duration on collective agreements constitutes a violation of the Convention, if the parties are free to agree on a different duration.

Binding nature of collective agreements and association of persons. The Committee recalls its previous comments concerning Act No. 3845/2010 which provided that: “Professional and enterprise collective agreements’ clauses can (from now on) deviate from the relevant clauses of sectoral and general national agreements, as well as sectoral collective agreements’ clauses can deviate from the relevant clauses of national general collective agreements. All relevant details for the application of this provision can be defined by Ministerial Decision.” In its previous comments, the GSEE raised its deep concern that this provision paved the way for the dismantling of a solid machinery of collective bargaining which had been functioning smoothly and effectively in the country for 20 years as a result of a “Social Pact” endorsed in 1990.

As regards the matter of the association of persons, the Committee notes the information in the Government’s latest report that Act No. 4024/2011 provides that, where there is no trade union in the company, an association of persons is competent to conclude a firm-level collective agreement. The Government adds that the association of persons is established irrespective of the total number of workers and without an indefinite duration. The Government confirms that at least three-fifths of the workers of the enterprise are required for forming an association of persons and thus the minimum number of workers for an association is five. These workers are protected against anti-union dismissal and may exercise strike action; they therefore constitute trade union organizations of a peculiar type. According to the annual report of the labour inspectorate, 22 firm-level agreements were concluded by association of persons and 26 by trade unions from the period 27 October (time of the publication of Act No. 4024) to 31 December 2011. The SEV states that, in its opinion, an association of persons is just another form of trade union organization already recognized by the law and that its role is purely supplementary.

The Committee nevertheless is of the understanding that unions cannot be formed in enterprises with less than 20 workers, thus leaving a void for association of persons to have priority to make firm-level agreements over negotiations which previously took place with respect to small enterprises at the relevant sectoral level. Moreover, the Committee recalls its concern that, given the prevalence of small enterprises in the Greek labour market (approximately 90 per cent of the workforce), the facilitation of association of persons combined with the abolition of the favourability principle set out first in Act No. 3845/2010 and given concrete application in Act No. 4024/2011 will have a severely detrimental impact upon the entire foundation of collective bargaining in the country. The Committee requests the Government to ensure that trade union sections can be formed in small enterprises in order to guarantee the possibility of collective bargaining through trade union organizations.

As regards the favourability principle, while observing the indication in the Government’s report that the reinforcement of collective bargaining decentralization was included in the measures indicated by the troika including the suspension of this principle, the Committee highlights the importance of the general principle enunciated in Paragraph 3(1) of the Collective Agreements Recommendation, 1951 (No. 91), that collective agreements should bind the signatories thereto and those on whose behalf the agreement is concluded. The Committee also observes from the examination of Case No. 2820 by the Committee on Freedom of Association, however, that the Government has affirmed that all collective agreements will be binding upon the parties. While recalling the importance in the current situation of ensuring that trade union sections can be established in small enterprises, the Committee requests the Government to ensure full respect for this principle and to continue to provide information on the impact of firm-level agreements, including the number of associations of persons constituted in the country and the number of agreements concluded by them and their coverage, and to indicate whether there have been any first-level agreements in contravention with the abovementioned favourability principle.

Arbitration. As regards the previous concerns raised by the GSEE in relation to the Organization for Mediation and Arbitration (OMED) and recourse to arbitration, the Committee now observes that arbitration can only be carried out at the request of both parties, which is not contrary to the Convention. The Committee further observes from the latest comments of the GSEE, however, that the arbitrator is obliged to adapt the award to the need to reduce unit labour cost by about 15 per cent during the programme period and that all the cases pending in arbitration at the time of Law No. 4046/2012 were compulsorily closed/archived. The Committee further observes that both the GSEE and the SEV contest the limitation of the arbitrators’ mandate to only wage issues. The Committee recalls the importance of efficiently functioning independent and impartial arbitration machinery without government interference and requests the Government to review these restrictions with the social partners so as to ensure that the arbitrators are not given such rigid instructions by law in carrying out their mandate so that they may be able to independently determine the matters voluntarily brought before them. The Committee further requests the Government to reply to the GSEE comments that the closing of the Workers’ Social Fund (OEE) will have a negative impact on the OMED as it was one of the main sources of funding for their organization enabling it to preserve its autonomy vis-à-vis the State.

Articles 1 and 3 of the Convention. Protection against anti-union dismissal. More generally, the GSEE has referred to the continuing introduction of measures introducing flexible forms of work which render workers more vulnerable to abusive practices and unfair dismissal (e.g. flexibility in the management prerogative to breach full-time work contracts and unilateral imposition of reduced-term rotation work, extended duration of permissible use of temporary agency work, increased probationary period and extension of the maximum period for fixed-term contracts). The Committee once again requests the Government to provide its observations on the comments made by the GSEE in this regard and to provide all relevant information, including comparative statistics relating to complaints of anti-union discrimination and any remedial action taken, with its next report.