Enterprise-level collective agreement signed at National Bank

In early January 2008, a two-year enterprise-level collective agreement was signed at the National Bank of Greece, Greece’s biggest bank, The agreement provides for improvements in various pay allowances (increases in basic pay are regulated by the sectoral collective agreement for the whole banking industry) and in other areas, such as equal leave entitlements for natural and adoptive parents.

The two-year enterprise-level collective agreement for the National Bank of Greece (ETE) was signed by management and the National Bank of Greece Employees Union (SYETE). It covers all 13,000 employees of the National Bank and is valid for 2007 (retrospectively) and 2008. The agreement, like the other enterprise-level agreements in the sector, supplements the sectoral agreement signed for the whole banking industry, which regulates increases in basic pay, family allowances and long-service allowances. The provisions of the enterprise-level agreements improve the financial and employment position of employees by increasing individual allowances and improving non-pay issues.

Pay provisions

The National Bank agreement provides for a 35% total increase in the ‘network allowance’ over the two years (15% on 1.1.07 and 20% on 1.1.08). Thus this allowance stands at €52 on 1.1.07 and €62 on 1.1.08. The network allowance is paid to around 8,400 bank employees, such as tellers and clerks, who work in activities related to the bank’s national network.

The allowance based on the employee’s position in the organisation hierarchy is increased by a total of 10% for the two years (5% on 1.1.07 and 5% on 1.1.08). Depending on the employee’s position in the hierarchy, from 1.1.08 this allowance ranges between €65 for the lowest grade and €289 for the position of director. The allowance based on position is paid to 11,000 bank employees and is included in calculating their pensions.

The ‘teller’s allowance’, for bank teller staff, is increased by a total of 10% for the two years (5% for 2007 and another 5% for 2008) and for 2008 it amounts to €87. This allowance is paid to 1950 employees.

Provision is made for a 5% increase in the allowance paid to people working in border areas (2% for 2007 and 3% for 2008), bringing it to €68. This allowance is paid to 1100 employees. In addition, a range of allowances relating to a smaller number of employees has been readjusted - e.g. increases in the travel allowance for blind and mobility-impaired people, the allowance for safety officers, the translation allowance, etc. Certain special allowances are also extended to other categories of employees and, finally, four new allowances are introduced - e.g. special allowances for e-banking management and for management of secretarial staff.

Non-pay provisions

Working parents at National Bank are entitled to a shorter working day in order to bring up a child – two hours shorter during the first two years of the child’s life and one hour shorter during the third and fourth year. The new agreement gives them the option of taking this time off in one block. Thus a working parent may now choose, instead of working shorter hours, to take a total of nine months’ leave on full pay. Further, time off rights have been harmonised for natural and adoptive parents, with an increase in extra leave for adoptive parents to 120 consecutive days, to allow the family to adapt to the post-adoption situation

The new agreement provides for a 20% increase in the payment made to cleaners when they retire. It also provides for the inclusion in the category of ‘bank staff’ those employees who formerly worked in the bank’s consumer cooperative (shops owned by National Bank and selling consumer goods exclusively to its employees), which has now stopped operating. Finally, the agreement extends the time given to bank employees to pay off the housing and personal loans they receive from the bank.

Reactions

National Bank management expressed its satisfaction that the agreement was reached, following a lengthy period of bargaining. It should be noted that it is currently the intention of Greek banks to give greater emphasis to enterprise-level agreements than to the sectoral agreement (GR0602105N), thereby seeking a decentralisation of bargaining. The president of the SYETE trade union stated that at a difficult time for workers’ employment rights in general the agreement is judged to be adequate, as regards both its pay-related and non-pay provisions.

Commentary

The conclusion of an enterprise-level agreement at the country’s biggest bank is expected to have a positive effect on the conclusion of similar agreements in other banking institutions. However, the view has been expressed that the conclusion of similar agreements and the emphasis placed on enterprise-level agreements may weaken the importance of the sectoral agreement, which covers all employees in the banking sector, even those who, due to the small size of the banks in which they work, have little bargaining power. The sectoral agreement may help prevent strong differentiation and imbalances among employees with the same general characteristics.

Stathis Tikos, INE/GSEE