Greek study urges greater flexibility in employment and working time

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A recent study by the National Institute of Labour, a Government supervised institute, points out the need for more flexibility on the Greek labour market at a time when this subject attracts attention due to the ongoing social dialogue on industrial relations.

A recent study by the National Institute of Labour (EIE), an institute supervised by the Ministry of Labour, stresses the need for more flexibility in industrial relations in Greece ("Flexible forms of employment and flexibility of working time: trends, developments and perspectives", D Karadinos, EIE, Athens (March 1997)). According to the study, the delay in expanding flexibility in the Greek labour market is due to the following reasons:

• restructuring has not taken place in Greece to the extent and intensity seen in other countries;

• over the recent period an effort has been made in Greece to promote internal and functional flexibility with an emphasis on training (with questionable results); and

• finally, in Greece, there is a significant increase in illegal flexibility in conjunction with an increase in the "informal" or "submerged" economy.

In addition, owing to the extent of self-employment in relation to total employment (approximately 50%), the so-called modern sector of the labour market capable of accepting deregulation is much smaller than that corresponding in other EU countries. Consequently, the implications of introducing new measures will have a much smaller impact than they have had in other countries. More specifically, the study reports that part-time employment as a percentage of total employment remains very low (4.8%) despite its rise over recent years. Also, voluntary part-time employment is only 30% (of the 4.8%) and temporary employment, whose non-voluntary character is also dominant, is declining to the European average (10%).

As far as working time flexibility is concerned, only a few - and not innovative - measures have been taken, covering mainly shifts and overtime. Minimum or "rolling" working hours arrangements are applied in only very few cases. Certain practices like annual calculation of working time, personalised working hours and non-continuous or interrupted employment schedules have been ignored. The limited experience in this matter is attributed also to the fact that worker needs are rarely taken into consideration and, as a result, they do not accept working time flexibility measures that are intended only to cover the operational needs of the company. Actual working hours and days are very different from the eight-hour day, five-day, Monday-to-Friday work model. Only a minority of workers (43%) work the conventional 36-40 hours a week pattern. Although there is a steady decline in statutory and actual weekly working hours worldwide, in Greece there has been an increase in actual working time because of the extensive use of overtime, taking of multiple jobs and limited application of part-time employment. Businesses are open for longer hours which on the one hand increases employment, especially in retail, but on the other hand creates a conflict between large and small businesses as the former push for fully deregulated working time whilst the latter resist because they feel too weak to face the competition.

Proposals made by EIE

The EIE study proposes that measures should be taken:

• to support the extension of part time employment both in the private and the public sectors. Emphasis should be given to the reduction of social insurance contributions for those working part time. Companies should ensure that part-timers enjoy rights (for example to social insurance and vocational training) pro rata to full-timers and that legislation on selection procedures and the right to return to work (for example after maternity leave) are properly applied; and

• to promote working time flexibility through a new arrangement for annualised hours systems, which would allow the voluntary switching from full-time to part-time employment and the introduction of steps to establish longer operational hours, mainly for those services that deal with the public. This would also promote the introduction of intermittent work with appropriate forms of payment, without affecting training and development.

It is noted also that these measures could potentially be used as the means to combat unemployment. However, there is the question as to whether a wider application of flexible employment will lead to the strengthening of labour market segmentation, thereby reinforcing a secondary labour market, an issue that needs to be addressed in more specialised surveys.

Finally, policies promoting flexibility are thought to offer greater benefits when they are used as a complement to an overall active employment policy.

Commentary

The EIE study, which is based on an analysis of official statistical data, provides a useful focus for considering the current situation of the Greek labour market, especially flexibility matters.

It is always necessary to evaluate the many financial and social factors when analysing the data and extracting conclusions. The actual level of income in Greece and the low earnings of a large category of permanent full-time employees, so low that they cannot meet even basic needs, hinders moves towards greater flexibility which means lower earnings. However, the study notes a counter-view about flexibility that originates from the unions. According to this view, the Greek labour market is particularly flexible especially on the illegal or "informal" side, an aspect that must be taken into account when analysing the degree and depth of flexibility on the Greek labour market. (Giannis Kouzis, INE/GSEE)