Largest employer organisation holds annual general meeting

In May 2008, the Association of Businesses and Industries (SEV), Greece’s largest employer organisation, held its annual general meeting. Members renewed the two-year term of Dimitris Daskalopoulοs, the SEV chair, who is credited with the recent successful conclusion of a new National General Collective Labour Agreement (ΕGSSΕ) for 2008-2009. Representatives of employers in growing service sectors increased their representation in the SEV’s governing structures.

At its annual general meeting in the mid-May 2008, the members of the Association of Businesses and Industries (SEV) (www.fgi.org.gr), Greece’s largest employer organisation, renewed the two-year term of Dimitris Daskalopoulοs as its chair. The members of SEV credited Mr Daskalopoulos with successful negotiations over a new two-year National General Collective Labour Agreement (ΕGSSΕ) for 2008-2009 with the General Confederation of Greek Workers (GSΕΕ) – the agreement was signed in June. At what is a difficult time politically, with large-scale protests by workers against the government’s social security reforms (GR0805029I), commentators believe that the conclusion of a new EGSSE will lead to industrial peace in the private sector, at least with respect to pay.

SEV’s annual general meeting was attended by the Prime Minister, Costas Karamanlis, the leader of the main opposition party, Giorgos Papandreou, and the President of the GSEE, Yiannis Panagopoulos.

In the elections of new members of SEV’s governing bodies, representatives of dynamic and growing sectors of the economy such as services, banking and IT, showed a clear wish to strengthen their presence in SΕV’s structures, as did young and successful managers. Approximately a quarter of the SEV’s 90-member Board of Directors was replaced, with the majority of new members coming from the services sector.

Call for reform

In his speech to the meeting, Mr Daskalopοulοs, said that there is a need for reform, which is all the more necessary in the current difficult international economic situation, in order to sustain the momentum of growth in the Geek economy, while ensuring greater prosperity and social security.

According to the chair of SΕV, the agents of such changes should be the state, the trade-union movement and employers. In his opinion, the state should be less bureaucratic and more effective. He claimed that the state had often squandered public funds and fallen short in the provision of services to the public. He claimed that the trade-union movement prevents neither impending threats against workers nor the financial difficulties of unemployed people, particularly young people, women and the middle-aged, thus risking a loss of credibility and power.

Mr Daskalopοulοs also criticised Greek business, stating that the business community has not always displayed a ‘collective conscience’ and has sometimes conducted itself as if not particularly concerned for the future of the country. Consequently, he said, ‘we need to reform ourselves’ as a condition for the acceleration of progress in all sectors.

Political and trade union viewpoints

Speaking at the meeting, Prime Minister Karamanlis summarised the measures taken by his centre-right government to boost the development of the economy and of entrepreneurship, while reiterating a desire to further strengthen competitiveness and ensure high growth rates with the implementation, from national and EU funds, of the National Strategic Reference Framework (NSRF) 2007-2013 (a development programme aimed at improving the business environment, increasing living standards and achieving balanced economic growth). The Prime Minister invited the business world to do more in some areas of social responsibility, such as protection of the environment.

The President of the main opposition party, the socialist PASOK, Mr Papandreοu, told delegates that current economic policy does not meet the needs of ensuring high rates of growth and competitiveness in conjunction with social cohesion. For this reason, he said, a ‘development planning agreement’ based on four principles should be concluded with the social partners. The principles are: a shift to a development model featuring policies that better protect the environment; the maintenance of social cohesion by strengthening the purchasing power of households; improving state efficiency by putting an end to bureaucracy and corruption; and more widespread social consultation.

Mr Panagopοulοs, the Chair of GSΕΕ, the central private-sector trade-union organisation, claimed that the government’s economic policy is creating oligopolies, which, in conjunction with the current programme to privatise public sector enterprises, will cause ‘suffocating’ conditions for society and citizens, which will inevitably lead to social conflicts.

Commentary

The recognition and development of structures for dialogue between social partners and the signing of a new two-year National General Collective Labour Agreement for 2008 and 2009 have contributed to the achievement of a minimum of social peace, particularly with respect to pay, which part of the business world regards as a positive achievement for the leadership of SΕV.

Some commentators argue that the new leadership of SΕV, which has now been strengthened by representatives from dynamic and developing sectors of the economy, must choose between two rationales encountered in Greek business circles. According to the first rationale, the challenge of strengthening business competitiveness in a globalised environment will be met by placing emphasis on quality, innovation and research, which will lead to a strengthening of the role of social dialogue. According to the second rationale, on the other hand, maintaining and perpetuating a development model that keeps labour costs low will strengthen competitiveness. Critics find it doubtful that this second rationale will lead to social peace and consensus.

Stathis Tikos, INE/GSEE