Greece: Industrial relations

Original and updating author: Christos A. Ioannou

Consultant editor: Costas D. Papadimitriou
Summary

Workers have the right to form and join a trade union, but cannot be obliged
to join one. (See Trade union rights)

Collective agreements have, up to 2013, covered the majority of the

workforce, and dealt with various issues. Since 2014, there has been a move
towards individual agreements. (See Collective bargaining and agreements)

Works councils may be set up, on the employees' initiative, in companies

employing at least 50 workers, or 20 workers where there is no trade union
present. (See Informing and consulting employees - general)

There are various rules regarding employers' obligations to inform and

consult prior to redundancies. (See Informing and consulting prior to
redundancies)

There are various rules regarding employers' obligations to inform and

consult prior to business transfers. (See Informing and consulting prior to
transfers)

"Community-scale" undertakings must, in certain circumstances, establish a

body to negotiate with management over the establishment of a European
Works Council or an information and consultation procedure. (See European
Works Councils)

Lawfully constituted trade unions have a constitutional right to strike in order

to "protect and promote the financial and the general labour interests of
working people". (See Industrial action and picketing)

3.1: Impact on industrial relations actors

The impact of the economic crisis on employment relations has also an effect on the social
dialogue in Greece, to the extent that its decisions affect post memorandum employment
relations. Collective employment agreements (industry-wide, enterprise-level, occupational)
signed after the memorandum for the most part stipulate decreases in pay or zero increases.
3.1.1 The industrial relations actors in this section will principally be the social partners at
all levels, including national, regional, sectoral and company. Please describe any relevant
impacts. This could include impacts such as:

Reorganisations of the social partners, including mergers and changes in representation.

Up to present there have been no changes in the social partners due to the economic crisis.

Changes in role and visibility of the social partners. Where relevant to your country,
please also indicate any changes in the role of the social partners as stakeholders in the
Public Employment Services (PES), including:
o Changes to social partner consultation about the management and operation of the
OES (for example, due to the government needing to act quickly in response to
the crisis)
o Changes in the involvement of the social partners in the PES, possibly due to the
government wanting to act unilaterally in response to the crisis

Trends such as trade union or employer organisation membership (upwards or

downwards), and how far this can be attributed to the crisis. Any impacts on other actors,
such as central and local government, and NGOs, where relevant.

There is no information evidencing changes in the union membership after the economic crisis.
Changes may possible arise during the GSEE Conference in March 2013.
Social dialogue in Greece maintains the same characteristics during and before the crisis,
meaning still mostly for the sake of appearance and not substantial.
3.1.2 Overall, how severe do you think the impact of the crisis has been on industrial
relations actors in your country? Please tick the relevant box.
very severe X
severe
not very severe

not severe at all

3.2: Impacts on industrial relations processes

3.2.1 Please describe impacts in the following areas:
Impacts on:
collective bargaining arrangements;

centralisation or decentralisation trends;

the introduction of opening clauses;

changes in the extension of collective agreements;

wage setting mechanisms;

indexations mechanisms;

arrangements for employee information, consultation and participation;

organisation of industrial action;

procedures for dispute resolution;

changes in the relationship between the social partners, either leading to closer
cooperation or more conflict.

3.2.2 Overall, how severe do you think the impact of the crisis has been on industrial
relations processes in your country? Please tick the relevant box.
very severe X
severe
not very severe
not severe at all

Centralisation or decentralisation trends- wage setting mechanisms- Impact of crisis on

industrial relations.

The economic crisis and passing of laws on the loan support to Greece (Memoranda) brought
extensive changes to labour legislation. These changes lead to a dramatic increase of flexible"

employment agreements. This data is based on the last quarterly report (January-March 2012) of
the Hellenic Labour Inspectorate (SEPE). For the first time, during the first quarter of 2012, there
are more part-time employment and job rotation agreements in the private sector than full-time
recruitments with a full pay. Moreover, enterprise-level agreements and adjustment of terms of
employment in individual employment agreements are rapidly increasing to the detriment of
industry-wide agreements which were in first place for decades until recently. These changes are
accompanied by reduced remuneration and an increase of uninsured labour.
According to SEPE data on the first quarter of 2012, recruitments of salaried persons in the
private sector, across all specialties, were reduced by 13% (16,320 jobs) in relation to the
previous year (2011). Furthermore, the percentage of recruitments with flexible agreements
(part-time employment, job rotation) is for the first time greater (50.13%) in relation to full-time
employment agreements. Out of a total of 104,689 recruitments, 52,485 were with flexible
employment agreements (39,914 for part-time and 12.571 for job rotation) while full-time
recruitments stood at 52,204. In comparison to the corresponding period in 2010, full time
recruitments are down by 53.13% (59,413 less jobs).
Another significant increase noted is the conversion of full-time employment agreements to parttime or job rotation agreements (either with the consent of employees or by unilateral decision of
the employer) aimed at decreasing the labour cost. Specifically, in relation to the first quarter of
2011, conversion of full-time employment agreements to flexible employment were increased
by: a) 48% (3859 conversions) with respect to part-time employment, b) 4% (281 conversions)
with respect to job rotation with the consent of employees, c) 157% (2578 conversions) with
respect to job rotation by unilateral decision of employers, amounting to a total of 23,101 from
16,338 in 2011, while there were only 3,222 in 2010. Thus, compared to 2010, the increase of
employment agreement conversion from full-time to flexible employment stands at: a) 346%
part-time employment, g) 1,253% voluntary job rotation and c) 10,460% job rotation by
unilateral decision of employers. It should be noted that without providing official statistical
data, job rotation according to legislation can be also related to part-time employment for fewer
days a week or a month or a combination thereof and for a period of up to 9 months within one
calendar year.
Undeclared work is one of the issues that continue to bedevil the Greek labour market. At a
theoretical level, the basic reasons for the birth and institution of this phenomenon are on the one
had the increased payroll cost and on the other the protective regulations of labour law, which
have been compromised to a great extent during the last two years. At the same time a new,
contemporary framework of operation was instituted at the Hellenic Labour Inspectorate in order
to make control of the labour market more efficient. However, undeclared labour is not restricted
but on the contrary, it has taken new, very troublesome dimensions and forms in an expanding
recession environment.
The 2011 Annual Report of the Hellenic Labour Inspectorate mentions that the percentage of
uninsured employees for the year is determined at 30%. Specifically, audits in 20,246
enterprises, which represent 2.5% of the countrys enterprises, found 19,968 uninsured
employees on a total of 66,615 employees (29.98%). Under the nationality criterion, 40% were
uninsured aliens compared to 26% Greek uninsured employees.

Practically identical conclusions are drawn from the data published by the Special IKA_ETAM
Insurance Audits Service (EYPEA). A total of 20,567 uninsured employees were found (8,225
aliens - 12,342 Greeks) over a total of 68,345 employees recorded in on-the-spot checks (30.2%
uninsured employees).
Of the uninsured employees recorded by EYPEA, 40% are aliens who evade any type of official
record thus justifying the disproportion between work permits and legalization applications by a
large number of immigrants who continue to live and work in the country illegally.
Both studies conclude that the sectors most likely to harbour uninsured labour are: food and
beverage service occupations (restaurants/taverns, party halls, cafeterias, bars, night clubs),
Industrial Parts, Industrial zones, Hair Salons, Gas Stations, Automobile Service Stations,
Transport Companies, Cleaning companies, Construction, hospitality, Security services).
Therefore, the size of uninsured labour in Greece can be safely determined and draw the
conclusion that one in three employees is employed under conditions of fully undeclared work.

of industrial action;

The 20102011 Greek protests were a series of demonstrations and general strikes taking place
across Greece with an unprecedented for Greek standards participation of citizens. In this
context, a barrage of strike action was called by GSEE and ADEDY, in protest against the
changes in public-sector and private-sector labour relations brought about by the Memorandum.
On 23 February 2011, a 24-hour general strike, called by GSEE and ADEDY, for both the public
and private sector takes place, involving up to 100,000 people, as German Chancellor Angela
Merkel called for a renewal of the loan programme to Greece that had been conditioned on fiscal
tightening. The measures adopted by Greece were considered harsh by the protesters.
On 11 May 2011, GSEE and ADEDY stage a strike in the private and the wider public sector,
protesting against the governments economic policy. The entire Public Sector, the public
utilities, the revenue departments, the social security funds, the public transports, the employees
of Public Hospitals, the bank employees, the crews of all categories of ships (Pan-Hellenic
Seamens Federation), the mass media employees (Pan-Hellenic Federation of Journalists
Associations) participate in the strike.
On 25 May 2011, and for 3 consecutive days, the Indignant Citizens Movement (Greek:
), started demonstrating in major cities across Greece. Sparked by the
2011 Spanish Protests, these demonstrations were organized entirely using social networking
sites, which earned it the nickname "May of Facebook".
On 28 June 2011, Greek unions, including those in health, transportation, education, and
government jobs began a 48-hour strike, in protest against the deteriorating economic situation
and suggestions on the part of the government of Journalists and a number of artists also stopped
working in solidarity with the protest. That day, demonstrations turned violent as protestors
clashed with police in front of the Greek parliament and other areas of central Athens. Violence

continued during the night and on 29 June, the day when a new package of deeply unpopular
austerity measures was passed.
Hundreds of thousands of protesters, including employers, took part in a national 48-hour strike
organised by the Greek General Confederation of Labour (GSEE) and the Confederation of Civil
Servants (ADEDY) on 19 and 20 October 2011. The strikers, from both public and private
sectors, were protesting against a draft law by the Ministry of Finance. It includes cuts in pay,
jobs and pensions, and has been brought in as part of Greeks financial bail-out deal with the EU,
IMF and ECB (GR1111019I).
Finally, new strike action was taken by the trade unions, as GSEE and ADEDY held a 24-hour
nationwide strike on the 1st of December, protesting against the measures described in the 2012
budget and the pro-memorandum policy of the new Government.

3.3: Industrial relations outcomes

3.3.1 Please describe any impacts on collective agreements at national, regional, sectoral or
company level.
These impacts could take the form of agreements of shorter length, non-renewal of collective
agreements, pay pauses, or the implementation of parts of collectively agreed increases only.
3.3.2 Overall, how severe do you think the impact of the crisis has been on industrial
relations outcomes in your country? Please tick the relevant box.
very severe
severe
not very severe
not severe at all
In Greece, the enactment of Law 4024/2011 made it possible for Collective Employment
Agreements (CEAs) to be drawn up at business level, even in very small enterprises. These
agreements take precedence over the sector-level CEAs, even if imposing less favourable terms
for employees.
In accordance with the new law, 53 business-level agreements were drawn up in January 2012,
of which 44 were made with collective industrial organisations and primarily concerned small
enterprises. These collective industrial organisations, also introduced under Law 4024/2011, are
temporary workers unions composed of three-fifths of employees. The representatives are
entitled to enter into a CEA at any company where there is no trade union.

This regulation created a new trend in the field of collective bargaining. Many business-level
agreements are now being drawn up by informal associations of workers established under the
provisions of the new rules.
Further legislation, Law 4046/2012 implementing Memorandum 2 agreed with the Troika the
International Monetary Fund (IMF), European Union (EU) and European Central Bank (ECB)
(GR1203019I) allowed companies to reduce lower national wages by 22%, effective from 14
February 2012.
Between 14 February 2012 and 14 May 2012, 263 business-level agreements, affecting 13,829
employees, were brought in across Greece. The Labour Inspectorate data show that these new
business-level agreements introduced an average wage reduction of 21.35%. In the same period,
data for the personnel lists of 16,338 enterprises registered with the Labour Inspectorate revealed
a similar reduction of wages, an average drop of 22.9% affecting 64,201 employees.

3.4: Severity of impact on industrial relations

Overall, how severe do you think that the impact of the crisis has been on industrial relations in
your country? Please tick the relevant box.
very severe
severe
not very severe
not severe at all