Observation (CEACR) - adopted 2010, published 100th ILC session (2011)

The Committee notes that in a communication dated 29 July 2010 the Greek General Confederation of Labour (GSEE) submitted urgent comments with regard to the legislative measures implemented or to be implemented by the end of 2010 by the Greek Government in the framework of the mechanism to support the Greek economy (the GSEE refers to this mechanism as the “loan mechanism”). The International Trade Union Confederation (ITUC) and the European Trade Union Confederation (ETUC) expressed their support for these comments in communications dated 9 August and 22 September 2010, respectively. In a communication dated 25 November 2010, the Government indicates that its reply is being finalized and will be communicated to the Committee as soon as possible, the delay being due to the complexity of the issues and the consequent need for involvement and coordination of many co-competent agencies.

The Committee notes that on 5 May 2010, the Greek Parliament adopted Act No. 3845/2010 (FEK A’65/6-5-2010) on “Measures to implement a mechanism to support the Greek economy by the Member States of the Euro area and the International Monetary Fund”. The Act contains as Appendices III and IV, a “Memorandum of Economic and Financial Policies” and a “Memorandum of Understanding on Specific Economic Policy Conditionality” which contain time-bound commitments set up by the Ministry of Finance, with the participation of the European Commission, the European Central Bank and the International Monetary Fund and communicated in letters by the Ministry of Finance and the Governor of the Bank of Greece to the President of the Eurogroup, the European Commission and the European Central Bank and to the International Monetary Fund.

The Committee also notes the adoption on 8 July 2010, of Act No. 3863/2010 on the “New Social Security System and relevant provisions” (FEK A’115) in order to implement certain of the time-bound commitments made in the two Memoranda attached to Act No. 3845/2010 in the area of structural policies on strengthening labour markets. In addition, on 5 March 2010, prior to the creation of the mechanism to support the Greek economy, the Parliament had adopted Act No. 3833/2010 (FEK A’40/15-3-2010) on the “Protection of the national economy – Emergency measures to tackle the fiscal crisis”.

The GSEE criticizes section 2(7) of Act No. 3845/2010, as a result of which the national general collective agreement will no longer function as a minimum wage setting mechanism since branch and enterprise level agreements will be able to deviate from the terms of the sectoral agreements and the national general collective agreement. The GSEE notes that this provision dismantled a solid machinery of collective bargaining which had been functioning smoothly and effectively for 20 years as a result of a “Social Pact” endorsed unanimously in 1990 by all political parties and empowered by the consensus of the most representative employers’ and workers’ organizations following intense social dialogue. According to the previous system introduced by Act No. 1876/1990, the national general collective agreement took precedence over all other collective agreements, applied to all private sector workers in the Greek territory regardless of affiliation to a trade union, and bound all employers throughout the country.

The GSEE also objects to the exceptions introduced in the application of the national general collective agreement to young workers (of 18–24 years) and children (of 15–18 years) and the authorization granted to the Minister of Labour (in section 2(9)(e) and (f) of Act No. 3845/2010) to regulate through Presidential Decrees their working conditions, thus excluding this vulnerable group of workers from the scope of the minimum standards of wages and working conditions, which had so far been set through the national general collective agreement. It notes in particular, that newly hired young workers up to 24 years of age and children of 15–18 years will be remunerated at, respectively, 80 and 70 per cent of the minimum basic wage, as this is established in the national general collective agreement, for a period of 12 months (sections 2(6) of Act No. 3845/2010 and 74(9) of Act No. 3863/2010).

Furthermore, the GSEE objects to the permanent (and not temporarily restricted) drastic reductions in wages introduced twice in 2010 in the wider public sector including for employees under private law contracts (employed in local self-government and public enterprises) despite the provisions of the relevant collective agreements in force (sections 1(2) and 1(5) of Act No. 3833 and sections 3(1), (4), (6) and (8) of Act No. 3845/2010). The GSEE claims that collective agreements have been prohibited in the wider public sector by sections 1(2), (5) and 3(5) of Act No. 3833 and 3(8) of Act No. 3845/2010, which provide that all provisions in collective agreements which are contrary to the Acts in question are cancelled and superseded.

The GSEE also draws attention to various time-bound commitments introduced in the two Memoranda without any consultations with the social partners which in its view, constitute in and of themselves a violation of the autonomy of the bargaining parties and designate a pretextual process of dialogue on foregone conclusions and binding commitments that are already part of national legislation.

Finally, the GSEE criticizes the absence of consultations on the adoption of the abovementioned legislative measures which, according to the GSEE, does not signal a political will and commitment to engage in social dialogue in good faith nor does it manifest a sincere intention to take into account the views of the GSEE on these significant matters.

The GSEE concludes that Acts Nos 3833/2010, 3845/2010 and 3863/2010 lead to workers’ disempowerment in the face of the combined spill-over effect of lay-offs, wage freezes and the abolition of the minimum standards of wages, negate the State’s fundamental obligation to provide and protect decent work, violate the very essence of individual and social rights and endanger social peace and cohesion. The GSEE emphasizes that the measures in question are permanent and irreversible, notwithstanding the specific time frame and limited duration of the loan mechanism; are disproportionate, socially unjust and discriminatory vis-à-vis workers, especially the most vulnerable; have been adopted without examining sufficiently other well-weighed and more appropriate alternatives; are not quantifiable and their scope has no perceivable causal relationship with the pursued aim of implementing the stability programme; are not accompanied by adequate and concrete safeguards to protect the living standard of workers and support vulnerable groups in addressing the combined effect of economic austerity measures and the economic crisis; have had a serious and direct impact in weakening the position of GSEE during the collective negotiations that began in January 2010 for the conclusion of the new national general collective agreement.

The Committee must emphasize the importance of holding full and frank consultations with the employers’ and workers’ organizations on the revision of collective bargaining machinery, in accordance with the principle of the autonomy of the parties to the collective bargaining process and in light of the long-ranging implications of such revision for the standard of living of workers. Furthermore, it must recall that as a general matter, 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. The Committee will examine the comments by the GSEE, along with the Government’s reply and the Government’s regular report which is due in 2011 it at its next session; the latter should also address the comments previously made by the Committee (see observation 2009/80th Session).

The Committee finally notes that as indicated by the GSEE, the revision of the collective bargaining machinery may have a wider impact on the observance of a range of ILO Conventions ratified by Greece, including the Labour Inspection Convention, 1947 (No. 81), the Freedom of Association and Protection of the Right to Organise Convention, 1948 (No. 87), the Protection of Wages Convention, 1949 (No. 95), the Equal Remuneration Convention, 1951 (No. 100), the Social Security (Minimum Standards) Convention, 1952 (No. 102), the Discrimination (Employment and Occupation) Convention, 1958 (No. 111), the Employment Policy Convention, 1964 (No. 122), the Minimum Age Convention, 1973 (No. 138), the Labour Administration Convention, 1978 (No. 150), the Collective Bargaining Convention, 1981 (No. 154), and the Workers with Family Responsibilities Convention, 1981 (No. 156).

In light of the complexity and pervasiveness of the measures adopted in the framework of the support mechanism, which touch upon a number of ILO Conventions ratified by Greece, the Committee invites the Government to avail itself of the technical assistance of the Office and to accept a high-level mission to facilitate a comprehensive understanding of the issues, before the examination by the Committee of the impact of the measures in question on the application of this Convention, as well as other Conventions ratified by Greece.