Report in which the committee requests to be kept informed of development - Report No 243, March 1986

Case No 1354 (Greece) - Complaint date: 08-NOV-85 - Closed

1. 312. A number of complaints alleging violation of trade union rights in Greece have been presented by several trade unions, namely: a part of the administrative council of the General Confederation of Labour of Greece (CGTG) and the Panhellenic Federation of Accountants, initially on 8 November 1985, and subsequently the Panhellenic Union of Merchant Marine Engineers (PEMEN), the Panhellenic Union of Merchant Marine Seamen (PENEN) and the Panhellenic Union of Certified Third Engineers and "Stefenson" Firemen, in a communication dated 25 November 1985. Finally, several other Greek trade unions sent a standard letter dealing with the same issues in communications dated 6, 7, 15 and 16 December 1985. This standard letter was signed by the Panhellenic Federation of Municipal Employee Unions, the Trade Union Centre of Workers and Employees of Ioannina, the Panhellenic Federation of Non-Permanent State Workers, the Trade Union Centre of Karditsa, the Panhellenic Federation of Garment Workers, the Federation of Social Security Agency Pensioners, the Panhellenic Federation of Actors and Musicians, the Federation of Mining Workers of Greece, the Trade Union Centre of Agrinion, the Federation of Mill Workers of Greece, the Federation of Leather Workers, the Federation of Hospital Agencies, the Panhellenic Federation of Bakery Workers, the Federation of Undertaker Unions, the Trade Union Centre of Preveza, the Trade Union Centre of Arcadia, the Panhellenic Federation of Special Treatment, the Federation of Construction and Allied Workers of Greece, the Federation of Private School Teachers, the Panhellenic Federation of Accountants, the Workers' and Employees' Centre of Canea (Crete), as well as the Workers' Centres of Kavala and Larissa. PEMEN, PENEN and the Panhellenic Union of Certified Third Engineers and "Stefenson" Firemen sent another communication dated 23 December 1985.
2. 313. The Government, for its part, replied in communications dated 3 and 18 December 1985 and 18 February 1986.
3. 314. Greece has ratified the Freedom of Association and Protection of the Right to Organise Convention, 1948 (No.87), and the Right to Organise and Collective Bargaining Convention, 1949 (No.98).

A. The complainants' allegations

1. 315. The communication received from the General Confederation of Labour of Greece (CGTG), signed by Mr. Papamichael, who claims to be the President of CGTG, begins by focusing on recent economic measures adopted by the Greek Government. In this connection, the complainant denounces the suppression of the automatic indexing of wages with reference to prices and the suppression of salary increases in the last four months of 1985, which allegedly result from a Presidential Decree repealing the right of collective bargaining until the end of 1987.
2. 316. Secondly, the complainant explains that the President of CGTG, Mr. Raftopoulos, arbitrarily and without the prior approval of CGTG bodies accepted the two-and-a-half year freeze on collective bargaining, and in violation of the by-laws repeatedly refused to call a meeting of the CGTG administrative council in order to adopt the required resolutions. Mr. Papamichael indicates that, after several fruitless requests addressed to the President, the CGTG administrative council was then convened by the CGTG executive committee on 29 October 1985, in accordance with the by-laws and the law, and resolved to remove the President, Mr. Raftopoulos, from office.
3. 317. The complainant goes on to explain that on 31 October 1985, the administrative council elected him President of the CGTG; he had previously been Vice-President of this organisation. He adds that it was resolved at the 29 October 1985 meeting that the CGTG enter into a discussion with the Government in order to review the economic measures in light of prospects for development and economic growth, and seek the repeal of the Presidential Decree ordering the freeze of existing collective agreements. At this same meeting, the administrative council also called a 24-hour general solidarity strike, to take place on 14 November 1985.
4. 318. The complainant further states that Mr. Raftopoulos, the ex-President of the CGTG, supported by the Government, filed an appeal in the Greek courts through the Patras Labour Centre, which he controls, seeking to obtain the annulment of the administrative council's decisions and to forestall the reaction of the CGTG. According to the complainant, it is clear that this judicial coup will result in the removal of the union leaders legally elected by the 22nd Congress of the CGTG in December 1983, and that a pre-selected interim council will be appointed in order to ensure the majority required to support the Government's economic policies.
5. 319. The complainant also states that, in accordance with its by-laws, the CGTG executive committee has decided to organise a special Panhellenic Congress in January 1986, for the purpose of electing a new administrative council, and that this decision has been approved by the great majority of its member organisations. However, continues the complainant, Mr. Raftopoulos, the ex-President, has forced 16 members of PASOKE, who are also members of the CGTG's administrative council, to resign, while he himself and the Treasurer, Mr. Breyannis, have not done so and have refused to yield their offices to their substitutes until such time as a judicial decision is rendered. It was at this time, the complainant explains, that the Patras Labour Centre requested that the courts appoint an administrative council.
6. 320. In conclusion, the complainant requests the ILO to intervene with the Greek Government in connection with the Presidential Decree suspending the right of collective bargaining until 1987 and the risk of government intervention in the appointment of the CGTG administrative council by the Greek courts.
7. 321. In its communication of 8 November 1985, the Panhellenic Federation of Accountants supports the complaint presented by Mr. Papamichael, and explains that following President Raftopoulos's repeated refusals to call a meeting, despite three separate requests presented by 26 of the council's 45 members, the executive committee and administrative council of the CGTG did in fact meet. With 12 of 15 members of the executive committee and 27 of 45 members of the administrative council voting in favour, these bodies decided to call a 24-hour general strike on 14 November, to undertake discussions with the Government prior to the strike, to postpone by 18 days, from 31 October to 17 November, the meeting to approve the CGTG General Council's financial report, to censure President Raftopoulos and Treasurer Breyannis, and to request their resignation. Despite these decisions, the complainant federation goes on to explain, the ex-President of the CGTG refused to yield his office to the new President, Mr. Papamichael. The Government then intervened through the courts, summoning the chief judge of the Court of Athens to the Ministry of Justice and demanding that he suspend the above-mentioned decisions of the CGTG administrative council by means of an interim order.
8. 322. According to the complainant federation, this government intervention provoked a number of demonstrations; half of the labour centres (including the largest, such as those of Athens, Salonika and Piraeus), and 26 federations decided to support the new CGTG administrative council and to join the 14 November strike. Furthermore, the complainant alleges that the Government used the labour centre to seek an annulment of the CGTG decisions, in order to dismiss the newly elected CGTG executive under a number of pretexts. At the same time, the complainant alleges that the Government orchestrated the resignation of a minority of the CGTG's administrative council in order to bring about an administrative void and thus request judicial intervention.
9. 323. The standard letter signed on 6, 7, 15 and 16 December 1985 by a number of trade unions repeats the substance of the above-mentioned allegations. The letter adds that the economic measures adopted by the Government will entail a reduction of over 20 per cent in the income of workers, employees and pensioners in 1986, that the Presidential Decree which came into force on 18 October 1985 is valid for six months until its approval by Parliament, and that it prohibits, until the end of 1987, wage increases which do not conform with the Government's wage and salary policies. This Decree applies to all workers without exception, and to all manner of increases; in other words, daily and hourly wages, allowances, financial benefits and all other benefits. Furthermore, all conflicting legal provisions, provisions of collective agreements, arbitration awards, ministerial decrees or other governmental decisions or individual contracts are abolished.
10. 324. The letter further states that the anti-worker measures in question have provoked the reaction of trade unions and the working class as a whole. The letter confirms that the CGTG administrative council, elected at the 22nd Congress in December 1983, whose mandate expires in December 1986, voted by an overwhelming majority to condemn the governmental measures. It alleges that the general strike of 14 November 1985 was supported by 90 per cent of the organisations affiliated with the CGTG.
11. 325. On the subject of the CGTG administrative council, the letter states that, despite the fact that the 22nd Congress elected 84 substitute members in addition to the 45 titular members and that a number of the substitutes have already been called on by the administrative council to fill the vacancies resulting from the resignations, and although the CGTG administrative council, elected at the request of 50 unions and federations (a number in excess of that required by the by-laws), decided to convene a national trade union congress on 10 and 12 January 1986 in order to find solutions to the problems created by ex-President Raftopoulos and the Government's manoeuvres, the Athens court of first instance, under government pressure has annulled the election of the CGTG administrative council and appointed a new council of 45 members, composed of trade union leaders supportive of the Government.
12. 326. As regards the court's decision, the letter alleges that this was influenced by the Government, and that the judge contradicted himself. In fact, even though the judge recognised that in order for the administrative council of a trade union organisation to be appointed by a judicial decision there must exist a compelling reason, such as the impossibility of obtaining a quorum in accordance with the law and the organisation's by-laws, he acknowledged that 28 titular members and eight substitute members of the administrative council, in other words, 36 active members, had been present. According to this letter, however, the CGTG by-laws require the presence of only 25 members to constitute a quorum. None the less, the judge subsequently rejected his own arguments, declaring that a quorum did not exist, and proceeded to annul the election of the administrative council and appoint another.
13. 327. Furthermore, these organisations added in a second communication, the Government has recently attempted to undermine trade union rights by submitting a Bill to Parliament, the contents of which are identical to those of the President of the Republic's legislative act of 18 October 1985. These organisations state that in light of the Government's significant majority in Parliament, the Bill will certainly be adopted.
14. 328. This second communication contains the text of the Bill in question, dated 25 November 1985. Section 1 of the Bill approves the legislative act of 18 October 1985 concerning "measures in the interest of the national economy", and reiterates the text of the legislative act, whose sole section forbids new agreements on wage and salary increases in excess of the limits established by the Government's incomes policy, until the end of 1987, exempting only such increases as are tied to family status or the development of the worker's career, which have been previously established by law, collective agreements, ministerial decisions, arbitration awards, labour regulations of an organisation or enterprise or any other regulations. Section 2 of the Bill describes the incomes policy mentioned in section 1 and stipulates that it shall consist only of the payment of the automatic adjustment for inflation (ATA). As of 1 January, the automatic adjustment for inflation will be paid to wage earners at the beginning of every four-month period, in accordance with the estimated percentage change in the consumer price index, after adjusting for imported inflation. Imported inflation is to be calculated with reference to the consumer price trends of imported products, as shown in the sales price index for all sales, calculated over the last four-month period. The rate of the automatic adjustment for inflation is to be determined by decision of the Ministry of the National Economy. Should there exist a difference between estimated inflation and real inflation at the end of fiscal year 1986-87, such difference is to be paid at the beginning of the following year. Under this system, the automatic adjustment for inflation for the first four months of 1986 is to be paid on 1 January 1986.
15. 329. Wage earners whose income surpasses 150,000 drachmas per month are not entitled to the automatic adjustment during the first four months of 1986. The calculation and payment of the adjustment for these persons is to be effected by subtracting a sum of 5,000 drachmas for each child. Employees earning less than 150,000 drachmas, but whose income exceeds this sum after the addition of the adjustment for the first four months of 1986, are to receive a portion of the adjustment until they have reached this amount. The adjustment for employees who hold several jobs, or for pensioners who receive more than 40,000 drachmas per month and also hold a job, is to be paid only in respect of one of their sources of income, of their choosing. There is provision for a safety clause concerning agreements concluded prior to 18 October 1985, whereby employers have agreed to pay wages or other allowances in excess of those provided for by law; in other words, these employers may exceptionally pay such sums. The automatic adjustment is to be paid as follows: up to 50,000 drachmas, in its entirety; from 50,000 to 75,000 drachmas, one-half; from 75,000 to 100,000 drachmas, one-quarter; in excess of 100,000 drachmas, it will not be paid at all.
16. 330. PEMEN, PENEN and the Panhellenic Union of Certified Third Engineers and "Stefenson" Firemen stress the unconstitutional nature of the legislative act which seeks to safeguard the national economy; in their opinion, it violates Article 4 of Convention No. 98. They contend that such restrictive measures are hypocritical and are only intended to allow capital, managers, businessmen and their servants to increase their profits and force the working class to bear the whole burden of the country's economic recovery. They contend that collective agreements and bargaining are in fact being restricted, if not completely abolished, and that the right to strike is terminated; consequently, the Greek Government is informally denouncing Conventions Nos. 87 and 98 without having the courage to comply with formal denunciation procedures and face up to its responsibilities before the international community.

B. The Government's reply

1. 331. In its first communication, dated 3 December 1985, the Government presents the background to the crisis within the CGTG administrative council that took place towards the end of October 1985. The Government explains that, despite the opposition of the President of the CGTG, 26 of the 45 members of the CGTG administrative council met on 27 October 1985 at a meeting illegally convened by the CGTG's Vice-President, Mr. Papamichael, held to remove from office the elected President, Mr. Raftopoulos, to elect as President the Vice-President, Mr. Papamichael, to call a general strike and to protest against the Government's economic policy and against the legislative act of 18 October 1985 concerning the stabilisation of the country's economy and its economic and social development.
2. 332. Given the circumstances, the Patras Labour Centre, a member organisation of the CGTG, filed a lawsuit with the Magistrate's Court of Athens, requesting the annulment of the illegal decisions adopted by the so-called "Group of 26", and that the court issue an interim order staying the execution of these decisions pending final judgement.
3. 333. On 25 November 1985 the Magistrate's Court of Athens rendered Decision No. 2421, suspending the decisions dated 27 and 29 October 1985, pending a final judgement, on the grounds that the said decisions had been made in violation of the law and the CGTG by-laws, and were consequently illegal.
4. 334. Furthermore, in the light of the resignation of 16 members of the CGTG administrative council, and its consequent inability to function legally, the Patras Labour Centre filed another appeal before the Court of First Instance in accordance with the law requesting that the court appoint an interim administrative council to call a congress of the CGTG within the next four months, for the purpose of electing a new administrative council.
5. 335. In this connection, the Government explains that section 69 of the Civil Code provides that, in the absence of the persons required for proper administration, or in the case of conflicts of interest, the court shall appoint an interim administrative council upon the request of the party having a legitimate interest. The practice of appointment of interim union administrative councils by the courts is commonplace in Greece, and the Panhellenic Federation of Accountants, a complainant in a case in 1981, itself resorted to this practice along with ten other federations on the occasion of the annulment of the 21st Congress of the CGTG by the Court of First Instance of Athens and the judicial appointment of an interim administrative council until such time as a legal congress of the CGTG could be held.
6. 336. Given the circumstances, the Government continues, the complaints filed by the "Group of 26", which alleges to represent the CGTG administrative council, as well as by the Panhellenic Federation of Accountants, are groundless. Furthermore, the Government considers that the Panhellenic Federation of Accountants has overstepped the limits of propriety and union ethics by slandering the Minister of Justice and the Chief Magistrate, and by its contempt of established authority, punishable under section 181 of the Penal Code. In this connection, the Government indicates that a copy of the communication of the Panhellenic Federation of Accountants was transmitted to the Ministry of Justice for the purpose of instituting legal proceedings in the event that the signatories of the complaint filed with the ILO did not present their apologies. In fact, the charges of the complainant organisation concerning an alleged judicial coup d'état and the alleged governmental intervention in judicial matters are clearly defamatory, since the judicial system in Greece functions with complete independence, as required by the Constitution, and magistrates are appointed for life and are not subordinate to the executive power; moreover, the executive power is in no way authorised to intervene to the detriment the independence of judges, who obey only the Constitution, the law, and their own conscience. In the Government's opinion, these allegations are dishonest and demonstrate a total lack of union ethics. Moreover, there has been in Greece no governmental intervention whatsoever in union matters since the adoption of Act No. 1264 of 1982, respecting the democratisation of the trade union movement and the protection of workers' trade union freedoms, which has led to an overhaul of the union movement, the natural leaders of which are at the head of the CGTG.
7. 337. Concerning the strike of 14 November 1985, which was called by the "Group of 26", wrongful pretenders to the administration of CGTG, the Government indicates that only 9.5 per cent of the 1,750,000 workers observed the strike, which thus proved a failure.
8. 338. As regards the crisis within the CGTG, the Government claims that it led a minority of union members and an occasional majority of leaders to organise a movement motivated by political reasons in opposition to much needed measures of ecomic stabilisation. The Government points out that the legislative act redefining the automatic indexing of wages with reference to prices (ATA) does not abolish the right of collective bargaining, but rather constitutes a temporary measure of a predetermined duration, limited to two years, aimed at limiting wage negotiations. According to the Government, collective bargaining may still address all other issues covered by collective agreements. The limitation of wage increases is based on Article 106 of the Constitution, which provides that "for the purpose of safeguarding social order and protecting the public interest, the State shall plan and co-ordinate the country's economic activities, while attempting to ensure the economic development of all sectors of the national economy". The Government also points out that it had already introduced a limitation on the automatic indexing of wages with reference to prices in 1983, by means of section 27 of Act No. 1320 of 1983. (See Case No. 1193, examined by the Committee on Freedom of Association in its 230th Report, paras. 294-323.)
9. 339. In its second communication, dated 18 December 1985, the Government replies to the allegations of PEMEN, PENEN and the Panhellenic Union of Certified Third Engineers and "Stefenson" Firemen.
10. 340. On the subject of the constitutionality of the legislative act, the Government indicates that by virtue of Articles 5, 12, 22 and 23 of the Constitution, collective labour agreements reached by means of free negotiations between the interested parties have a constitutional character; nevertheless, in the event of imperative reasons dictated by the state of the national economy, the legislature may take measures to restrict wage increases, provided that such restrictions remain in effect for a predetermined and limited period, and provided further that the same economic conditions persist. Consequently, according to the Government, the legislative act does not violate Conventions Nos. 87 and 98, given the fact that it does not abolish freedom of association and collective bargaining.
11. 341. The Government also adds that, in conjunction with these economic measures, it has undertaken efforts to restore the economy by presenting a programme to stabilise and increase the competitiveness of the Greek economy by limiting balance of payments and public sector deficits, reducing inflation and stabilising certain branches of the economy. To accomplish these ends, the principal measures of this programme entail a 15 per cent devaluation of the drachma, the modification of the system of automatic indexing of wages with reference to prices (ATA), the levy of a special contribution on the net profits of companies and persons engaged in liberal professions, a limited increase in the price of agricultural produce, yet below the rate of inflation, the requirement of bank deposits, in the form of advance payments, of 40-80 per cent of the value of certain imported products and raw materials, and a decrease of approximately 25 per cent in public expenditure.
12. 342. The Government claims that an objective analysis of this economic programme for 1986-87 reveals that the legislative act impugned by the complainants does not constitute governmental intervention in collective bargaining, nor is it an effort to undermine the autonomy of social partners; on the contrary, it constitutes an integral part of its general economic planning policy, intended to foresee risks, to take into account the interests of the general public, and to promote the autonomous development of the national economy in accordance with the principle defined in Article 106 of the Constitution. Furthermore, the Government indicates that the economic measures in question were adopted within the framework of the policies of the European Economic Community (EEC) in order to protect Greek enterprises, the continued operation of which constitutes a necessary condition for safeguarding employment and containing unemployment at the present level, a level which ranks among the lowest of the EEC member States, but which poses economic and moral problems with respect to the unemployed in Greece, who for the most part are young people and women.
13. 343. Finally, the Government points out that the economic recession has affected a good number of countries, and has had a negative impact on Greece. The Government adds that, despite these problems, the automatic indexing of wages with reference to prices has been maintained up to the present, while in all Western European countries, and in certain Eastern European countries where it was in effect, it has been abolished; although several of these countries have a rate of development surpassing that of Greece, they have been unable to keep up with the demands of the system. The Government cites Italy as an example, where the issue of the automatic indexing of wages with reference to prices was the subject of a referendum in which a majority of 56 per cent of workers voluntarily accepted reduction of their wages.
14. 344. The Government also mentions that in the last four years it has expanded the range of issues subject to collective bargaining, pointing out that a number of new topics have been the subject of bargaining, notably in the area of hours of work (the establishment of a five-day and 40-hour work-week), the enhancement of the rights of workers having family responsibilities, the protection of union leaders, the granting of facilities for the exercise of union activities, the right of trade unions to intervene in the workplace, the raising of family allowances, the introduction of educational and cultural leave, the granting of housing loans to workers, and in general the improvement of conditions of work.
15. 345. While the Government recognises that a restriction on wage increases, even for a limited period, may cause hardship to workers, it points out that Greek workers view these difficulties within the perspective of economic necesities, as evidenced by the general climate of understanding with regard to the need to protect the national economy, as well as by the low level of participation of workers in the strike of 14 November 1985 called by the dissident group of 26 former council members of the CGTG. According to the Government, Greek workers have a sense of responsibility when faced with the general and urgent problems affecting their country's economy; this is due to the fact that great progress has been accomplished in their favour in the last four years. Among other things, the Government cites the 35-45 per cent increase in the wages of the most disadvantaged workers, whose wage increases have exceeded the rate of inflation, and the strengthening of social benefits in the fields of welfare, health, and education, which has resulted in a rise in the standard of living. Moreover, workers enjoy free transportation to their workplace, retirement benefits have more than doubled, the taxes of workers on the low end of the wage scale have been reduced, family allowances have increased by 20 to 80 per cent, the coverage of unemployment benefits has been extended and their level increased, vocational training has been improved, special programmes to promote and safeguard employment have been established, especially as concerns young and handicapped workers, the length of annual paid vacations has been doubled, protection against collective dismissals has been strengthened by means of procedures guaranteeing workers' participation and consultation in decision-making. Finally, Greece has recently ratified Conventions Nos. 103, 111, 122 and 156, thus improving the protection of workers in several areas.
16. 346. In a third communication dated 18 February 1986, the Government states that the standard letter sent by several trade union organisations was drafted by trade union administrative councils which are members of the Sole Trade Union Combatant-Collaborator Movement (ESAK-S) which in turn is attached to the Greek Communist Party and which is violently opposing, through all methods, the Government's policy. It adds that the trade union organisations - whose executives are composed of activists of political parties - introduce parliamentary political disputes into their internal matters in the struggle against the PASOK socialist Government. This is how the Communist Party, the Internal Communist Party and the New Democracy Party work. However, according to the Government, these associations only constitute a minority when compared with all the 77 federations and 84 labour centres which operate in the country. The Government indicates that the majority of the trade union associations are in agreement with the Government's policy and want to assist in overcoming the economic crisis over the next two years; this was shown by the weak support for the strike on 14 November 1985.
17. 347. The Government repeats its observations and information supplied previously concerning the crisis which occurred within the CGTG administrative council. It confirms that the decision (No. 2421 of 25 November 1985, a copy of which it supplies) of the Athens Magistrate's Court suspended the decisions taken by the "Group of 26", that the Patras Labour Centre appealed to the Athens Magistrate's Court (which was to have decided the matter on 9 January 1986, but which will render a decision at the beginning of February) for the definitive cancellation of the decisions of the "Group of 26" which was illegally presenting itself as the CGTG administrative council and that, in the meantime, the resignation of 16 members of the CGTG administrative council had led the Patras Labour Centre to request the Athens Court of First Instance to appoint an interim council for the CGTG responsible for organising a congress within the ensuing four months. The Government also states that the Court of First Instance, by a decision No. 4370/85, dated 4 December 1985 (copy supplied), annuled temporarily the "Group of 26" decisions and appointed an interim council. In addition it repeats its observations concerning the defamatory nature of the allegations of government interference in the court decisions.
18. 348. As regards the adoption of legislation on measures to protect the national economy, the Government again explains that this is in conformity with Article 106 of the Greek Constitution. It points out that the Appeals Court of Salonica has just rendered a judgement in support of this, indicating that the law is in conformity with the Constitution because it is aimed at strengthening the competitiveness of Greek products, at slowing down inflation, at reducing in the medium term unemployment, and the balance of payments deficit, as well as pursuing stabilisation and balanced development in all the sectors of the economy. This judgement indicates that the legislation in question does not call into question the principles contained in Conventions Nos. 87 and 98 and does not eliminate, as a whole, free collective bargaining. Moreover, it observes that the legislation is in force for only two years, and it stresses that strikes linked to demands for wage increases above those authorised by the measures to protect the national economy are illegal.
19. 349. The Government also confirms that, by virtue of Article 44 of the Greek Constitution, in exceptional circumstances of extremely urgent necessity the President of the Republic is empowered to issue legislative acts which must be submitted, for adoption, to the Chamber of Deputies within 40 days of issue; if this is not done in time they expire. The Government states that it therefore submitted the legislative act on measures to protect the national economy, within the time limit, to Parliament. It explains that the legislative act was not able to be publicly discussed with the workers' and employers' associations prior to this because it was approved at the same time as the national currency devaluation which had not been able to be discussed for fear of its non-acceptance.
20. 350. The Government emphasises the safeguards it adopted to ensure maintenance of the workers' living standard and stresses that the ATA was not suspended. It explains that this indexing continues to be applied according to a different means of calculation and adds that this form of calculation was the subject of a Bill for the approval of the legislative act presented to Parliament, the text of which will be transmitted as soon as it is adopted.
21. 351. The Government explains that the automatic indexation of wages to prices clause in collective agreements was introduced for the first time in 1982 by Act No. 1346 of 1982 to amend the labour legislation. In conformity with the previously applied indexation system, wage increases were granted at the beginning of every four-month period and corresponded to the increase in the price index registered over the previous four months; so as to protect the lowest incomes, the increase in the price index was scaled according to wages. Therefore, for wages up to 50,000 drachmas the total rate of the price index increase was granted; for salaries between 50,000 and 75,000 drachmas, half of the total was granted; and for salaries of 75,000 to 100,000 drachmas, a quarter. The automatic readjustment system in force in 1986-87 provides for the calculation of the rate of price index increase on an estimated basis rather than on known results. As from 1 January 1986, the ATA will be paid to workers at the beginning of each four-month period and will be equivalent to the price index increase forecast for the ensuing four months with the deduction of inflation linked to imports. If at the end of 1986-87 the rate of price index increase is greater than that forecast, a sum equal to the difference will be paid to the workers at the beginning of the next year. The Government adds that the system is accompanied by safeguards concerning family status and occupational promotions. It recalls that over the 1979-81 period the rate of inflation had stood at 92 per cent and that wages had been running at 11.4 per cent below that; on the other hand, during 1982-84 when inflation had dropped to 68 per cent, wage increases had been higher than the price index increase for the lowest salaries, the average rate of real wage increases being 46 per cent.
22. 352. The Government supplies statistics demonstrating the policy which has reduced the differences between workers with high salaries and those with low salaries. It states that, despite the unfavourable economic circumstances, it will continue to make every effort towards a general improvement in the workers' situation through social tourism, protection of the handicapped, elimination of inequalities between men and women, etc.

C. The Committee's conclusions

1. 353. The Committee notes that this case involves two questions: the first concerns an internal dispute within the administrative council of the General Confederation of Labour of Greece, and the second concerns measures interfering in collective bargaining that were adopted by the Government with the aim of checking inflation.
2. 354. As regards the internal dispute within the administrative council of the CGTG, the Committee has always considered that it is not competent to make recommendations concerning internal disputes within trade unions, so long as the government does not intervene in a manner which might affect the exercise of trade union rights and the normal functioning of an organisation. (See, in particular, 165th Report, Case No. 843 (India), para. 44; 172nd Report, Case No. 865 (Ecuador), para. 74; and 217th Report, Case No. 1086 (Greece), para. 93.)
3. 355. The Committee notes that the court decision No. 2421 of 25 November 1985 suspends the decisions of the "Group of 26" which, in particular, had removed the President from office and replaced him with the Vice-President. The court decision No. 4370/85 of 4 December 1985 temporarily annuled the decisions of the "Group of 26" and appointed an interim administrative council for the CGTG, entrusted with organising a Panhellenic congress of the Confederation within four months of the acceptance of appointment of the 45 members of the CGTG administrative council.
4. 356. In addition, the Committee notes that the Government firmly refutes the allegation that the Ministry of Justice summoned the Chief Magistrate of Athens. The Government also states that the judiciary in Greece is independent of the executive power.
5. 357. The Committee notes that the court-appointed interim administrative council was entrusted with organising this congress within a period of four months. The Committee expresses the firm hope that the congress will take place in the shortest possible time and that this will enable the trade union situation in Greece to be clarified. It requests the Government to keep it informed of the results of the congress.
6. 358. As regards the measures interfering in free collective bargaining that were adopted by the Government for 1986-87, which essentially concern restrictions in the manner of calculating the automatic indexing of wages with reference to prices (this indexing having been granted by the present Government in 1982), the Committee has noted the detailed information furnished by the complainants as well as by the Government.
7. 359. In general, the Committee notes that on those occasions in the past when it has examined similar cases, it has stated that, while the demand for a readjustment of wages in line with the cost of living may be mainly a question of an economic character, unrelated to freedom of association, the same is not true with regard to the method of fixing wages by collective agreements. The development of procedures for voluntary negotiation of collective agreements in fact constitutes an important aspect of freedom of association. However, it would be difficult to lay down an absolute rule in this connection because, under certain circumstances, governments might feel that the economic position of their countries called at certain times for stabilisation measures during the application of which it would not be possible for wage rates to be fixed freely through the process of collective bargaining. (See, in particular, 6th Report, Case No. 55 (Greece), para. 923; 106th Report, Case No. 541 (Argentina), para. 16; 110th Report, Case No. 561 (Uruguay), para. 225; and 116th Report, Case No. 551 (Cuba), para. 107.)
8. 360. Nevertheless, the Committee has repeatedly stated that if, as part of its stabilisation policy, a government considers that wage rates cannot be fixed freely by means of collective bargaining, such a restriction should be imposed as an exceptional measure and only to the extent necessary, without exceeding a reasonable period, and it should be accompanied by adequate safeguards to protect workers' living standards. (See 230th Report, Case No. 1180 (Australia), para. 55; Case No. 1171 (Canada (Quebec)), para. 162, and Case No. 1173 (Canada (British Columbia)), para. 573; 233rd Report, Cases Nos. 1183 and 1205 (Chile), para. 482; and 236th Report, Case No. 1206 (Peru), para. 507.)
9. 361. In the present case, the Committee has examined the text of the Bill containing the President of the Republic's legislative act, communicated to it by the complainants, which has been presented to Parliament for adoption; this imposes a two-year ban on wage increase agreements (until the end of 1987) beyond the limits imposed by the Government's economic policy, and indicates the manner in which wages are to be indexed with reference to prices. A review of this text reveals that, between 1 January 1986 and 31 December 1987, a significant number of workers will experience a decrease in their income with respect to price trends. The Committee notes that the measures in question do, in fact, provide for automatic adjustment of wages with respect to prices with modalities that are restrictive. On the other hand, it must be noted that these measures include safety clauses concerning family status and promotions, as well as a social policy structured in favour of workers.
10. 362. The Committee also notes that a similar restriction had already been enforced in 1983. While the Committee accepted such a restriction at the time, this was primarily in light of the fact that the restriction was limited in duration to a period of one year; none the less, the Committee had indicated that it might consider such a restriction open to criticism if certain restrictions on the freedom of collective bargaining were to remain unchanged. (See 230th Report, Case No. 1193 (Greece), para. 321.)
11. 363. It is the Committee's opinion that, while governments must act and find solutions in times of economic crisis, they should, in doing so, attempt to convince the parties involved in collective bargaining to take into account, voluntarily, the broader concerns of economic and social policy and the safeguarding of the general interest. Thus, these circumstances should be widely discussed on a national scale by all parties involved, within a tripartite consultative body dealing with wage policy or by any other means. However, and most importantly, the final decision concerning collective agreements should always rest with the parties to the agreement.
12. 364. The Committee considers it appropriate to draw the attention of the Committee of Experts on the Application of Conventions and Recommendations to this aspect of the case, within the context of the application of Convention No. 98, ratified by Greece.

The Committee's recommendations

1. 365. In these circumstances, the Committee recommends the Governing Body to approve this report and, in particular, the following conclusions:
   • a) As regards the dispute within the CGTG administrative council, the Committee considers that it is not within its competence to reach decisions on internal disputes within trade unions unless a government has intervened in such a manner as to affect trade union rights.
   • b) The Committee takes note of the fact that a congress of the Confederation will take place within four months. The Committee expresses the firm hope that this congress will take place in the shortest possible time and that it will enable the trade union situation in Greece to be clarified. It requests the Government to keep it informed of the results of the congress.
   • c) As for the measures interfering in the wage-fixing process that were adopted by the Government for the period 1986-87, the Committee expresses the hope that the Government will, at an early date, bring its action into line with the principles of free collective bargaining and that it will take steps, where necessary, to ensure that all questions concerning wage-fixing may be resolved through negotiations between the parties.
   • d) The Committee requests the Government to examine with the occupational organisations concerned the possibility of negotiating wage settlements in a manner that is free from interference by the public authorities.
   • e) The Committee draws this aspect of the case to the attention of the Committee of Experts on the Application of Conventions and Recommendations, within the context of the application of Convention No. 98 ratified by Greece.