Towards more effective monitoring of the workplace

The implementation of labour law in the workplace in Greece is not generally perceived to be adequately monitored. This shortcoming represents an important element of the labour market flexibility debate, which continues to divide political parties and stakeholders in the national industrial relations process. However, a 2005 study on the performance of the labour inspectorate shows that the reforms of recent years are having a positive effect.

Context

The issues of non-standard forms of employment and labour flexibility have sparked controversy and remain central themes of management and public policy debate in Greece during the last two decades. Employers are demanding greater flexibility in managing their workforce through relaxation of the current regulatory framework, which is considered too rigid and restrictive – particularly in respect of the determination of wages and working hours.

Furthermore, over the past 10 years, the Organisation for Economic Cooperation and Development (OECD), among other international institutions, has been highly critical of the Greek public administration. The latter has fostered a rigid labour market through burdensome regulations, thereby slowing down job creation and encouraging work in the informal sector (OECD, 2001).

Conversely, trade unions emphasise the need to protect workers from an excessive managerial prerogative, which in certain cases implies the violation of labour law. Moreover, the Greek labour market is notable for its large proportion of small and medium-sized enterprises (SMEs), which often find it difficult to comply with regulations, for example, with regard to working time.

The unions highlight the contrasting experience of low wages with high rates of productivity and gross domestic product (GDP) growth over the years (Labour Institute of Greek General Confederation of Labour/Confederation of Public Servants, INE-GSEE/ADEDY, 2006). In this context, it is not surprising that Greek employees exhibit one of the lowest job satisfaction rates in the latest [European Working Conditions Survey](/search/node/ewco OR surveys OR ?oldIndex), conducted by the European Foundation for the Improvement of Living and Working Conditions.

Analysis of labour inspections

A 2005 study (Mihail, 2005) examined the situation in Greece regarding labour inspections in the workplace, following legislative changes to facilitate the need for better monitoring and enforcement of labour law. The particular legislation in question was Law 2639/98 on the regulation of labour relations, establishment of a labour inspectorate and other provisions. The new labour inspectorate was officially inaugurated in December 2000 (GR0102100F).

The results of the 2005 study are based on 2001–2003 data drawn from the Department of Social Inspection in the northern municipality of Kilkis. The information provided summarised the labour inspectorate’s recommendations to employers and enterprises in the surrounding area, where a wide range of economic sectors are represented.

Study findings

The following table shows the effectiveness of two basic functions of the Kilkis Department of Social Inspection, namely:

• labour inspections at workplaces covering the enforcement of legal provisions in relation to working time, pay, atypical employment and social insurance;

• labour dispute resolution.

As the table clearly indicates, the number of inspections increased steadily between 2000 and 2003, while the number of prosecutions and labour disputes declined. As a first step, this development constitutes a good record of improvement.