Working life in Greece in 2023

Notes: Values for real GDP per capita are chain-linked volumes (based on 2010 data; €). The unemployment rate for men and women is the annual average as a percentage of the active population aged 15–74 years, and the youth unemployment rate is the annual average as a percentage of people aged 15–24 years. The employment rate for men and women is the annual average as a percentage of the active population aged 15–64 years, and the youth employment rate is the annual average as a percentage of people aged 15–24 years. GDP, gross domestic product.

Sources: Eurostat [sdg_08_10], for real GDP per capita and percentage change 2012–2022; [une_rt_a], for unemployment rate by sex and age; [lfsi_emp_a], for employment rate by sex and age.

Economic and labour market context

Since the onset of the economic crisis, the Greek economy has been in recession and has had high unemployment levels.

Between 2012 and 2022, Greek gross domestic product (GDP) increased by 10.45%, which was lower than the EU average growth of 15.29% in the same period. Unemployment figures decreased from 24.8% in 2012 to 12.5% in 2022.

After a sharp drop in GDP of 9% in 2020 (compared with the previous year) due to the pandemic, the country’s GDP then grew by 8.4% in 2021. This growth continued in 2022: according to the Bank of Greece (Τράπεζα της Ελλάδος, ΤΤΕ) (2023), GDP grew by 5.9% in 2022.

In addition, the inflation rate continued its upward trend in 2022: the yearly average consumer price index (CPI) in 2022 increased by 9.6% compared with 2021 (in 2021, the increase was 1.2% compared with 2020; Elstat, 2023).

The CPI of December 2022 increased by 7.2% compared with the corresponding CPI of December 2021, whereas the increase recorded between 2021 and 2020 was 5.1%.

The unemployment rate in the second quarter of 2022 reached 12.4%, a decrease compared with the corresponding quarter of the previous year (second quarter of 2021), when it was 15.8% (Elstat, 2022).

Legal context

There is no single overarching labour law or code that governs individual labour relations in Greece. Instead, there is a large number of different laws and labour regulations. Between 2010 and 2013, as a result of the bailout programme and the implementation of the memorandum signed between the Greek government and the troika (the International Monetary Fund, the EU and the European Central Bank (ECB)), more than 28 new laws were introduced in the area of labour relations. The new legislation aimed to introduce ‘structural reforms’ in the labour market, mainly by drastically reducing labour costs and implementing work flexibility on a broad scale. In addition, major reforms were introduced in the collective bargaining system following the enactment of Law No. 1876/90. From 2010, a series of legislative interventions were made that targeted the ‘decentralisation’ of collective bargaining (Law Nos. 3899/2010, 4024/2011, 4046/2012, 4093/2012 and 4172/2013).

On 20 August 2018, after the final legislation had been passed (Law Nos. 4512/2018 and 4549/2018) and the objectives had been achieved, the financial support programme was formally brought to an end by the institutions (the EU, the ECB and the European Stability Mechanism) and the country regained some fiscal autonomy. The government introduced two important labour reforms that have significantly changed the collective bargaining system and the setting of the minimum wage.

Decree No. 32921/2175/13-6-2018 of the Ministry of Labour and Social Security (hereafter referred to as the Ministry of Labour) re-established the extension mechanism for sectoral collective agreements and the favourability principle.

Law No. 4564/2018 introduced the application of the new mechanism for determining the minimum wage, as was initially introduced by Law No. 4172/2013 (Article 103). The operation and basic rights of trade unions (their recognition, representativeness and right to strike) are set out in Law No. 1264/1982, which is still in force, with some minor modifications having been made over the years.

There is no specific legislation regarding employer representation. The law on collective bargaining (Law No. 1876/1990) refers to employer organisations with wider representation, which can sign agreements in the field of their domain.

The new legislation on the extension mechanism for sectoral collective agreements and the favourability principle requires that, for the extension of collective agreements, signatory employers represent at least 51% of the employees in the industry.

In October 2019, Law No. 4635/2019 introduced some changes regarding the extension of sectoral collective agreements, the mechanism of arbitration and the creation of a register of trade unions and employer organisations.

During 2020, labour legislation was introduced regarding management of the COVID-19 pandemic.

In 2021, Law No. 4808/2021 introduced many important changes to individual employment relationships. These were:

• the introduction of a digital employment card
• the creation of the Greek Labour Inspectorate (Επιθεωρηση Εργασίας, SEPE) as an independent labour inspection authority
• the implementation of measures to ensure a balance between work and family life (the establishment of new forms of leave or changes to previously established forms of leave)
• the adoption of the International Labour Organization’s (ILO) Convention No. 190 on the elimination of violence and harassment in the workplace and Law No. 4808/2021 regarding measures to prevent such violence and harassment
• the implementation of measures for remote working and the right to disconnect for those who telework
• the establishment of an electronic registry for the registration of trade unions and employer organisations
• the adoption of new regulations regarding work schedules
• the implementation of changes to the regulations and rules regarding the right to strike

In 2022, Law No. 4921/2022 renamed the Hellenic Manpower Employment Organisation (Ελληνικός Οργανισμός Απασχόλησης Εργατικού Δυναμικού, OAED) as the Public Employment Service (Δημόσια Υπηρεσία Απασχόλησης, DYPA). The new law set out several changes to the administration, organisation and operation of the new service.

Finally, in December 2022, Presidential Decree No. 80 (Government Gazette 222/4.12.2022) codified the provisions of individual labour law that had been in force until then in a single text: the Code of Individual Labour Law (357 articles in total, 132 pages). This codification did not replace the existing legislation and case law; instead, it collated the rights and obligations of employers and workers in terms of individual labour law into a single text.

Industrial relations context

Until 1990, collective bargaining was characterised by very strong state interventionism and centralisation in setting wages and shaping working conditions and rights at both national and sectoral levels (Law No. 3239/1955).

From 1990 to 2010, the framework for negotiations was provided by Law No. 1876/90, which introduced a free collective bargaining system in which mediation and arbitration procedures (provided by an independent body, namely the Organisation for Mediation and Arbitration (Οργανισμός Μεσολάβησης και Διαιτησίας, OMED) played an important role.

The main levels of collective bargaining in Greece are national level, covering the whole economy; sectoral/occupational level, covering the majority of sectors and occupations; and company level. Under this structure, national-level bargaining produced the National General Collective Agreement (Εθνική Γενική Συλλογική Σύμβαση Εργασίας, EGSSE), which set the national minimum wage and dealt with other broader issues such as leave and training. At the same time, bargaining at sectoral/occupational level and then at company level built on this basis to provide better pay and conditions.

This structure was fundamentally changed by the measures introduced at the beginning of 2010. Through a series of consecutive legislative interventions (Law Nos. 3899/2010, 4024/2011, 4046/2012, 4093/2012 and 4172/2013), the following changes were made to the system: EGSEE and sectoral collective agreements became applicable only to members; the mechanism of extending collective agreements was abolished; company-based agreements were to be implemented by priority; the arbitration mechanism (OMED) could be used only if employers and employees agreed. This final provision was reversed in 2014 after the Council of State issued a decision that re-established the right to unilaterally appeal arbitration procedures, but a new regulation (Law No. 4303/2014) established a series of preconditions regarding the use of the arbitration system, which in fact make it difficult for arbitration to take place.

Additionally, under Law No. 4046/12, all collective agreements cannot be valid for more than three years (the maximum). Once the agreement has expired, only three months are given for negotiations for renewing it.

Furthermore, the national social partners no longer have the ability to set a universally applicable national minimum wage through the EGSSE. New legislation (Law Nos. 4093/2012 and 4172/2012) has given the Greek government the sole authority to do this; it only has to consult the social partners. This fundamental change in the Greek system of industrial relations has affected the coverage of collective bargaining in the country, with coverage seeming to be falling sharply.

In 2018, two new measures changed the context of industrial relations. Firstly, in August 2018, legislation was passed that re-established extension mechanisms for sectoral collective agreements and reintroduced the favourability principle. These two principles had been abolished since 2010 and 2011 (Law Nos. 3845/2010 and 4024/2011 for the favourability principle and Law No. 4024/2011 for the extension mechanism). In addition, from August 2018 until the end of the year, 10 existing national sectoral collective agreements were declared compulsory for all employers. According to the Ministry of Labour, these agreements cover approximately 191,000 employees.

Secondly, in 2018, the new mechanism for determining the minimum wage, which was initially introduced by Law No. 4172/2013 (Article 103) and amended in June 2018 by Law No. 4564/2018, was applied for the very first time. Specific dates for the consultation process, which would take place from August 2018 until January 2019, were passed into law. The aim was for the new minimum wage to come into effect on 1 February 2019. The mechanism provides for the development of a step-by-step consultation to determine the minimum wage, involving the government, the social partners and specialised scientific bodies, research bodies and experts. The process was completed at the end of January 2019 and a new minimum wage rate was introduced on 1 February 2019. This mode of regulation replaces the determination of the minimum wage via collective agreement, which was abolished in 2012 when the minimum wage was reduced.

Trade unions, employer organisations and public institutions play a key role in the governance of the employment relationship, working conditions and industrial relations structures. They are interlocking parts in a multilevel system of governance that includes European, national, sectoral, regional (provincial or local) and company levels. This section looks at the main actors and institutions and their role in Greece.

Public authorities involved in regulating working life

The Ministry of Labour (and its agency the Labour Inspectorate) is the public authority that is responsible for supervising labour relations and working conditions, namely in the following areas:
•    the regulation of individual and collective labour relations and social security laws
•    gender equality and equal opportunities
•    employment services
•    the social integration of foreign workers
•    the social protection and rehabilitation of special workers’ categories
•    the provision of help to people with disabilities
•    vocational training
•    the prevention of occupational accidents and occupational diseases
•    the management of EU funds and community and other resources related to the development of human resources
•    the representation of Greece in the ILO
 

SEPE, as legislated by Law No. 4808/2021 (amending Law No. 3996/2011), became an independent authority as of 1 July 2022. The main legislative framework concerning SEPE’s mission and duties is Law No. 3996/2011, as amended by Law No. 4808/2021. SEPE supervises the application of labour legislation and its inspectors visit workplaces and can fine employers for non-compliance with the law. It is also authorised to mediate in any individual labour dispute, to inspect the implementation of collective agreements and to take immediate administrative measures to enforce sanctions or refer the matter to a penal court. Among the changes introduced by Law No. 4808/2021 was the abolition of any form of social control and involvement of the social partners or workers’ representatives in the work and activities of SEPE. Under the previous regime, the reports and plans of SEPE were discussed and approved by the Supreme Labour Council (Ανώτατο Συμβούλιο Εργασίας, ASE), in which the social partners were also represented on an equal footing (a tripartite body in the Ministry of Labour).

In 2022, the OAED was renamed (by Law No. 4921/2022) as the DYPA. The DYPA continues to be a legal entity governed by public law and continues to be supervised by the Ministry of Labour. The DYPA deals with getting people into work, managing unemployment insurance and maternity leave, and implementing vocational education and training programmes, including apprenticeships. However, Law No. 4921/2022 set out several changes to the administration, organisation and operation of the service. For example, it set out a new composition of the Board of Directors, the establishment of the Social Partners’ Council and the autonomous administration and management of the Special Vocational Training Account by a legal entity made up exclusively of the social partners.

Representativeness

In the private sector and the broader public sector, trade unions’ operation and their basic rights (their recognition, representativeness and right to strike) are set out in Law No. 1264/1982, which is still in force today. At national level, there is only one workers’ confederation, the General Confederation of Greek Labour ( Γενική Συνομοσπονδία Εργαζομένων Ελλάδας, GSEE).
There is no specific legislation governing employers’ representativeness. The law on collective bargaining (Law No. 1876/1990) refers to employer organisations with wider representation, which can sign collective agreements in the field of their domain. At national level, there are five recognised employer organisations: the Hellenic Federation of Enterprises (Σύνδεσμος Επιχειρήσεων και Βιομηχανιών, SEV), which represents big industry and large companies; the Hellenic Confederation of Commerce and Entrepreneurship (Ελληνική Συνομοσπονδία Εμπορίου & Επιχειρηματικότητας, ESEE), which represents mainly small and medium-sized enterprises (SMEs) in commerce; the Hellenic Confederation of Professionals, Craftsmen and Merchants (Γενική Συνομοσπονδία Επαγγελματιών Βιοτεχνών Εμπόρων Ελλάδας, GSEVEE), which represents mainly SMEs in industry and some in commerce; the Greek Tourism Confederation (Σύνδεσμος Ελληνικών Τουριστικών Επιχειρήσεων, SETE), which was recognised as a national social partner by Law No. 4144/2013; and the Federation of Industries of Greece (Συνδέσμος Βιομηχανιών Ελλάδος, SBE), having been renamed following a decision of 25 January 2019), which was recently recognised as a new national social partner by Article 41 of Law No. 4554/2018.
In the public sector, the Confederation of Public Servants (Ανώτατη Διοίκηση Ενώσεων Δημοσίων Υπαλλήλων, ADEDY) is the only national-level trade union of public sector workers. ADEDY represents employees of the government, of local authorities and of legal bodies under the exclusive control of the state or local authorities (public legal entities).

Trade unions

About trade union representation

Law No. 1264/1982 is the basic legislation that governs the broader functioning of the trade union movement and recognises trade union rights. According to the law, a minimum of 21 employees have the right to establish a trade union and be validated by the court. This form of union is a ‘primary union’ (the most fundamental form of union organisation); it organises individuals in a certain profession, sector, service or company/establishment.
 

Trade unions in the private sector are organised at three separate levels: primary level (as discussed above); secondary level, at which there are two types of organisation (the federations, which consist of two or more primary unions in a sector or profession, and the labour centres, which represent unions at local level); and tertiary level (the national confederations).
 

There are two confederations, one for workers and employees in the private sector (the GSEE) and one for workers and employees in the public sector (ADEDY). Both confederations are affiliated members of the European Trade Union Confederation (ETUC).
The GSEE represents private sector workers and employees, including those working in the public utility services and in private bodies in which the state has a majority stake (such as the Public Power Corporation (Δημόσια Επιχείρηση Ηλεκτρισμού, DEI) and Hellenic Post (Ελληνικά Ταχυδρομεία, ΕLΤΑ).
 

ADEDY is the national-level trade union of public sector workers. Its unions represent employees of the government, of local authorities and of legal bodies under the exclusive control of the state or local authorities (public legal entities).
Two professional categories are excluded from the specific provisions of Law No. 1264/1982: journalists who can organise pensions, and ships’ workers/crews. These groups are covered under a special trade union law.

There is also a special regime in terms of trade union rights for some categories of workers, such as uniformed personnel (the police, coastguard and armed forces), the clergy and the judiciary. These categories have the right to form a trade union or a professional association in principle, but they cannot fully exercise some rights such as the right to strike.
 

In general, there are no national data available on the main trends regarding trade union density. A study by the Labour Institute of the GSEE (INE-GSEE, December 2013) estimated that trade union density was approximately 28.1% in the private sector. Of the 2,454,266 employees (Elstat, 2011) who potentially could be covered and represented by the GSEE and ADEDY, 690,247 employees voted to elect representatives to the GSEE and ADEDY congresses (March and November 2013).

According to 2016 data, of the 2,371,929 employees (Elstat, 2016a) who potentially could be covered and represented by the GSEE and ADEDY, 612,325 employees voted to elect representatives to the GSEE and ADEDY congresses (March and November 2016).

Finally, trade unions are not generally involved in pensions, unemployment schemes or closed shop systems.

Recently, Law No. 4808/2021 introduced the establishment of the Register of Trade Unions and the Register of Employees’ and Employers’ Organisations in the Ergani electronic system. A necessary precondition for the conclusion of a collective labour agreement is the registration of each trade union and employer organisation in the respective electronic register of the Ministry of Labour, which contains basic information about the organisations, including the number of members that they have.

Trade union membership and trade union density, 2012–2020