Bargaining deadlocked on 1998 National General Collective Agreement

In April 1998, the outcome of the latest meeting between Greek employers and trade unions seemed to indicate that negotiations over the new National General Collective Agreement are headed towards deadlock.

On 10 April 1998, in the fifth round of negotiations between employers' organisations and the Greek General Confederation of Labour (GSEE) on the 1998 National General Collective Agreement (EGSSE), the GSEE rejected the employers' offer. This included a 4% wage increase, to be adjusted in future by the difference between the actual inflation rate and 4%, if necessary. This rejection was confirmed by the GSEE executive committee at its meeting on 15 April, although it still left open the possibility of concluding a two-year agreement.

The GSEE' s decision came after its proposal on a lump-sum "relief allowance" to supplement the GRD 5,200 daily wage of the lowest-paid workers was rejected. This proposal was aimed at breaking the bargaining deadlock, because payment of the lump-sum benefit would not extend to better-paid workers, who would receive percentage wage increases. The GSEE' s view was that the alternative of a lump-sum payment would enable both sides to comply with the government recommendation that pay increases should not deviate too far from the 2.5% set by its incomes policy. In a meeting with the chair of the GSEE, the head of the Bank of Greece stressed the need to prevent pay increases from cancelling out the benefits arising from devaluation of the drachma (GR9803161F).