Unions oppose radical changes to public servants’ employment status

In late July 2008, the Greek Parliament passed a law expected to usher in substantial changes to the labour relations of employees in state-run utilities and enterprises (DEKOs).

On 30 July 2008, the Hellenic Parliament passed legislation that is expected to introduce significant changes to the labour relations of employees in state-run utilities and enterprises (DEKOs). Similar legislation was introduced by Law 3429/2005, which provided for new employment regulations in DEKOs, abolished existing protection for terms and conditions of employment and extended the trial period for new employees to seven months.

Content of the legislation

The recent amendment of the employment status of DEKO employees contains the following measures, which sparked strong opposition from the trade union movement:

• in the context of differentiating the employment status of newly-hired DEKO staff from that of other staff, the employment status of newly-hired staff may deviate from that provided for by any other collective regulation and by joint ministerial decision may provide for status similar to that of the across-the-board minimum wages set by the National General Collective Labour Agreement or the current sectoral or occupation-based collective agreements, thus limiting the possibility of more favourable enterprise-level regulation.

• Collective bargaining on wage increases in DEKOs (those that are loss-making or subsidised by the state) should be in accordance with the triple ceiling set by joint ministerial decision (consumer price index, financial situation of the enterprise, course of the state budget).

• Application to the Mediation and Arbitration Service (OMED), in cases where the two sides in DEKOs fail to agree, should be made by joint agreement between them, thus eliminating the possibility of unilateral application on behalf of employees, as was previously the case.

Positions of the social partners

According to the government, the above-mentioned regulation, which applies to newly hired employees in public enterprises that are operating at a loss or are subsidised by the state, is justified by the fact that structural alterations due to economic, technological and social changes are constantly taking place in such enterprises. Based on this rationale, in conjunction with their impact on competitiveness since they represent a major part of the country’s gross domestic product, it is believed that this regulation will help rationalise expenditures in these enterprises.

However, the unions, which were strongly opposed to this legislation, are preparing a series of strikes. According to the Greek General Confederation of Labour (GSEE), this regulation is opening the way to:

• intervention in free collective bargaining;

• violation of Article 22 para. 2 of the Constitution, which protects the independence of collective bodies;

• violation of minimum levels of protection laid down in ILO Convention 98 of 1949, as incorporated in Greek law through Law 4205/1961 (laying down the right to voluntary collective bargaining) and Law 154/1981, and as incorporated through Law 2403/1996 (on effective promotion and protection of collective bargaining);

• violation of Law 1876/1990 on free collective bargaining;

• gross violation of the norms regarding the binding nature of collective labour agreements (SSEs).

It is thought that this legislation will strike a serious blow not only to current enterprise-level labour agreements but also to employees’ union organisation and action at enterprise level, while in effect abolishing the right to unilateral application to OMED by DEKO employees. The unions argue that an appeal to the need for competitiveness and the financial situation of every DEKO ‘is not a criterion for regulations that override the laws and the Constitution’.

Commentary

The statutory and labour-related changes to DEKOs (restricting the role of collective bargaining, weakening the system of arbitration as well as of trade union action, and abolishing permanent status for newly hired staff), based on the argument for a need to restore public enterprises to health, may result in changes to the nature of employment rights and trade union activities in these enterprises. However, the view is also developing that the need for competitiveness could be met by adopting measures that have fewer effects on labour relations and trade union activities.

Anda Stamati, INE/GSEE