OKE examines social dialogue

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In December 2002, Greece's consultative Economic and Social Council (OKE) issued an opinion evaluating the development and prospects of social dialogue in Greece and at EU level - the first time that such an assessment has been produced. The opinion examines the progress of collective bargaining, institutionalised consultation and informal exchanges of views or consultations on a tripartite or bipartite basis.

On 18 December 2002, the Economic and Social Council (OKE) issued an own-initiative opinion (No. 86/2002) on the 'The social dialogue in Greece: evaluation, trends, prospects'. Under the term social dialogue, the opinion examines the course of collective bargaining, institutionalised consultation and informal exchanges of views or consultations on a tripartite or bipartite basis. The text of the opinion was unanimously agreed by all the groups and organisations represented on the OKE. The Council, established by Law 2232/ 1994, is an institutionalised national body for social dialogue among the country’s most representative social and economic organisations. Its members are divided into three groups - employers, employees and 'other' (farmers, representatives of the independent professions, local government and consumers). By law, it should give its opinion on important issues related to industrial relations, social security, taxation measures and socio-economic policy in general (especially regional development, investment, exports, consumer protection and competition) prior to the enactment of legislation in these areas. The OKE may also, on its own initiative, express opinions on issues of socio-economic policy.

Introduction

The OKE opinion states that, from the time that democracy was restored and the right to bargain collectively was enshrined in the 1975 Greek Constitution, there began a long, laborious process of developing an autonomous dialogue between the employers’ associations and the trade unions. This process gradually led to the establishment of a climate of trust in bipartite relations between the social partners and their partial independence from the state.

This changed climate began to be expressed as early as the mid-1980s. Its substantive expression, however, was laid down in the 1990s, with the promotion of a modern institutional framework for collective bargaining (Law 1876/1990). Alongside this, in the same decade new institutions and instruments, in which the role of the social partners was predominant, promoted the social dialogue on various levels. These were the OKE, the Mediation and Arbitration Service (OMED) (GR0206103F), the National Institute of Labour (EIE) and the Hellenic Institute for Occupational Health and Safety (ELINYAE).

The opinion states that nowadays the social dialogue scene is characterised by a tendency to limit the traditional interventionist role of the Greek state and by a stronger role for the social partners in social and economic policy- and decision-making. However, it should be noted that the main source of regulation is still government legislation. As a result, although its intervention has decreased somewhat, the state still plays a leading role, both formally and informally.

Structure and content of the opinion

The opinion consists of three chapters and three attached annexes containing data on the work of the OKE and OMED. The first of the three chapters examines developments regarding the social dialogue at the European Union level; the second analyses developments at national level; and the third contains overall conclusions and proposals.

The first chapter on the EU-level social dialogue contains a historical overview of the evolution of the basic institutions for dialogue and of the relevant legal framework for conducting such dialogue. Particular emphasis is devoted to describing the role and the responsibility of the social partners in implementing the the European employment strategy (EES) (EU0209204F) initiated at the Luxembourg 'employment summit' in November 1997 (EU9711168F) and the 'Lisbon strategy'- ie the modernisation and jobs strategy adopted at the March 2000 Lisbon European Council meeting (EU0004241F) . The shift towards strengthening the autonomous social dialogue marked by the social partners' joint statement to the Laeken European Council in December 2001 (EU0201231N) is highlighted, as is the partners' adoption in November 2002 of a three-year work programme of autonomous dialogue (EU0212206F).

The second chapter presents the development of the Greek social dialogue on many levels. First, reference is made to the legal framework and the experience of collective bargaining in the private sector and public administration. Extensive reference is then made to the OKE and its role, as well as its enshrinement in the Constitution. In addition, the experience of the regional dialogue and the institution of prefecture-level Economic and Social Councils is evaluated, along with the local dialogue and 'local employment pacts' (GR9703109N), and the non-institutionalised dialogue between the government and the social partners since 1997 (GR9704112N and GR0008179N), which has concerned efforts to reform the labour market (GR9711138F), the social insurance system (GR9806174F) and the system of taxation (GR9903118N).

Lastly, the third chapter attempts to draw conclusions and formulate proposals on promoting social dialogue and gradually developing it into an instrument for managing change.

General conclusions

The OKE opinion's main conclusions and proposals are as follows.

1. The OKE notes that the social dialogue between the country’s social actors has made a meaningful contribution to Greece’s economic growth, and helped achieve the convergence criteria which allowed Greece to join the EU Economic and Monetary Union (EMU), while preserving social cohesion.

2. The OKE states that the process of bargaining and concluding National General Collective Agreement s (EGSSEs), as well as the fact that they remain in effect for two years (GR0204109F), have made the EGSSEs a factor of stability in difficult economic circumstances dominated by a climate of uncertainty and anxiety. In their national agreements, the social partners ensure smooth industrial relations, demonstrating that when the social dialogue is carried out under clear terms and conditions and in a spirit of overcoming discord, it is of benefit for the economy and society as a whole. There is a need to extend immediately the pioneering outcomes of the national intersectoral level of collective bargaining to the other levels. In this context, the OKE proposes that the government make a commitment to transpose immediately the content of all the provisions of EGSSEs, as they stand, into legislation, provided that they do not put a burden on the state budget.

3. The attempts by the government so far to introduce various forms – tripartite or bipartite – of consultation with the social partners, prior to crucial reforms of a social and economic nature, have not proved to be particularly effective. The OKE believes that if the enshrinement in law (in an upcoming multiple draft bill from the Ministry of Labour) and the effective operation of the National Employment Committee and the National Social Protection Committee are brought to completion, they will help to prepare and manage such changes more effectively. These Committees can become forums for strategic planning, supervision and monitoring of the implementation of measures concerning employment, labour issues and social protection, through the joint participation of the social partners and the government.

4. The OKE believes that, in order to achieve the major Lisbon strategic goal, all the individual goals that have been set must be coordinated. The social dialogue is a key tool for doing this, since the social partners are basic contributors to the implementation of these goals, as well as participants in the good governance model promoted by the European Union regarding the manner of EU decision-making. In Greece, in particular, it is necessary, following consultation with the social partners, to set annual quantitative and qualitative indices for monitoring the progress of the employment goals set in Lisbon, with a time horizon of 2010.

5. The social dialogue conducted at the European level is, through the adoption of common goals, the basic tool for orienting the actions of the social partners at the national level. An awareness of this responsibility at this crucial juncture for the future of the Union has led to the need for an informal coordination of the actions of Community and national social partners. This fact was recorded clearly for the first time in the decisions of the Laeken EU 'social dialogue summit' (in December 2001), where the goal of setting up a multiannual action programme for a more autonomous social dialogue with the active involvement of the national social partners was announced (see above).

6. The OKE notes that the social dialogue and the dialogue with 'civil society' intersect. It regards these two forms of dialogue as being complementary. In practice, an era of a multi-faceted and multi-level dialogue is opening up, where in each instance the dialogue involving the social partners is of profound importance. This is a fact that must lead all the social partners to new ways of thinking, reflection, tactics and action.

7. In the opinion's chapter containing its conclusions, separate proposals are made with regard to the procedure, content and implementation of Greek collective bargaining and collective agreements in the private sector and public administration, and with regard to the representation of organisations. It is also mentioned that, during the 1992-2001 period, only 21.4% of collective agreements signed nationwide were concluded through the OMED. This demonstrates that the parties to these agreements have, as a rule, the ability to reach an agreement without the necessity of mediation by third parties or similar mechanisms. Resorting to mediation is more likely when there is seen to be a lack of, or a reduction in, the bargaining power of the workers’ side.

8. As concerns the institutionalised national social dialogue, it is stated that the national consultative social dialogue body, the OKE, is not utilised as extensively as it should be, given that fewer than half of the draft bills on economic and social policy were sent to the OKE for an opinion in the period between 1995 and 2001. Another cause for concern is the picture regarding acceptance of OKE opinions by the government, which reveals that the proposals of the social actors are not heard as much as is desirable, and as a result reform efforts often come up against an impasse, resulting in deficient or inapplicable legislation. The OKE states that its constitutionally enshrined opinion-delivering role should be respected (Article 82, para. 3 of the Greek Constitution), and that all draft legislation and social and economic political proposals should be forwarded to it for an opinion. It also proposes that a progress report on the work of the government and parliament be introduced, which should refer to the follow-up of the OKE's opinions.

Commentary

The OKE opinion attempts to provide a political and philosophical foundation for the institution of social dialogue, as a model of good governance, in Greece and the European Union. It fills a gap in Greece with regard to the collection and compilation of information, data and evaluations on the issue of the social dialogue as a 'multidimensional phenomenon'. The opinion may be characterised as being of historic importance, because for the first time a common position of all of Greece’s social actors has been presented regarding the value, progress and practical results of the social dialogue at the national and European levels, their interaction and synergy and the partners' role as basic protagonists in the dialogue and contributors to change.

It is the author's belief that this text will serve as a basic point of reference for the social partners on all sides, the state, policy-makers, the academic community and industrial relations researchers. (Dr Matina Yannakourou, scientific adviser to the Economic and Social Council of Greece)