On 27 June 2006, after a period of intensive bargaining and industrial action, a new company-level collective agreement (ESSE) for 2006–2007 was signed between the Public Power Corporation (Δημόσια Επιχείρηση Ηλεκτρισμού, DEI [1]), which is the biggest generator and the only electricity distributor in Greece, and the DEI General Staff Federation (GENOP/DEI), which is the most representative trade union organisation of DEI staff, with around 34,700 registered members.[1] http://www.dei.gr/
In late June 2006, the Public Power Corporation (DEI) and the DEI General Staff Federation signed a new company-level collective agreement for 2006–2007, which was the result of an intense bargaining round as well as industrial action. The new agreement increases pay scales and the length of service allowance. It also regulates the employment of new staff, raises the social wage and establishes a new committee responsible for defining staff transferability rules.
On 27 June 2006, after a period of intensive bargaining and industrial action, a new company-level collective agreement (ESSE) for 2006–2007 was signed between the Public Power Corporation (Δημόσια Επιχείρηση Ηλεκτρισμού, DEI), which is the biggest generator and the only electricity distributor in Greece, and the DEI General Staff Federation (GENOP/DEI), which is the most representative trade union organisation of DEI staff, with around 34,700 registered members.
Content of agreement
Pay elements
On pay-related issues, the new ESSE provides for average pay increases of around 4% for 2006 and 3.9% for 2007. These increases are within the limits set by the National General Collective Agreement (EGSSE) for 2006–2007, which provides for pay rises of about 2.9% beginning on 1 September 2006 and 5.1% for 2007 (GR0605019I).
The minimum wage was set at €275.88 beginning on 1 January 2006, rising to €288.02 starting from 1 September 2006, €306.94 from 1 February 2007, and €328.42 as of 1 September 2007.
The following four allowances have been combined into one single allowance: namely, the ‘single fixed allowance’, the 30% allowance to equalise wage differences in the company, the ESSE 1995 general allowance of 7% and the educational allowance. This move does not directly change pay scales, but having only one allowance facilitates the implementation of the new pay scales.
Finally, the length of service allowance was increased from 78% to 81% after 32 years of service, and to 84% after 34 years of service.
Non-pay elements
In relation to non-pay elements, new employees will be hired at first under fixed-term employment contracts for a trial period of seven months. At the end of the trial period, these fixed-term contracts will be converted to open-ended ones, and newly-hired employees will become permanent staff members and will be insured by the DEI Employee Insurance Organisation (OAP/DEI). This regulation is in line with Article 13 of the new Law 3429/2005 on Public Utilities and Services (a sector known as DEKO); it lays down different employment relationships for newly-hired staff in comparison with existing staff, for the purpose of converging the employment situation in the public sector with that of the private sector of the economy. This is not particularly favourable compared with the previous regime in force for newly-hired DEI staff, who were formerly recruited under open-ended employment contracts and were covered from the very beginning by the company-level collective agreement and the company’s works rules.
The social wage which is based on all non-monetary benefits and supplements workers’ incomes has increased, since the agreement provides for the transfer of funds to the newly-established Social Activities Organisation for DEI Employees (OKDE/DEI) in order to finance various programmes such as tourism and recreation.
Furthermore, the agreement makes provision for the establishment of a committee in which members of DEI’s most representative trade union will take part. Its task will be to design staff transferability rules laying down the criteria for employee transfers.
Views of social partners
The social partners took into account the economic and political conditions prevailing when the agreement was being concluded – for example, the company’s incomes policy, legislative intervention in DEI’s staff rules, as well as questioning of the institution of free collective bargaining. In comparison with previous years’ collective agreements (GR0411101N), the two sides regarded the new collective agreement as satisfactory to some degree, as it increases employees’ pay and resolves by legislative intervention many pending issues from the past. According to GENOP/DEI:
Since this whole rather negative situation exists, one cannot help but feel satisfied with the conclusion of an ESSE that offers employees quite a large degree of financial relief, offers the prospect of implementation of the new pay scales, resolves problems in connection with the long service allowance, provides a way out of the impasse regarding the levels of the wage scales, and resolves through legislative interventions many issues of concern to them.
Sofia Lampousaki, Labour Institute of Greek General Confederation of Labour (INE-GSEE)
Eurofound recommends citing this publication in the following way.
Eurofound (2007), New agreement at electricity supply company, article.
