Greek railways restructured as part of recovery plan
Published: 20 October 2011
The Greek parliament passed the act (law 3891/2010) restructuring the Hellenic Railways Organisation (OSE [1]) on March 23, 2011. This was in order to comply with the EU/IMF Memorandum dictating the strict implementation of the country’s recovery plan by March 2011.[1] http://www.ose.gr/
The Hellenic Railways Organisation is being reorganisedto fulfil a condition of Greece’s EU/IMF loan. The company is to be divided into four separate entities, covering administration and security, property management, infrastructure, and services. Routes will be re-scheduled or closed and 2,000 workers are to lose their jobs. The Ministry of Infrastructure, Transport and Networks hopes this will boost railway revenues. Unions have reacted with 24-hour strikes.
Background
The Greek parliament passed the act (law 3891/2010) restructuring the Hellenic Railways Organisation (OSE) on March 23, 2011. This was in order to comply with the EU/IMF Memorandum dictating the strict implementation of the country’s recovery plan by March 2011.
Changes brought about by the restructuring
OSE will be divided into four separate entities.
OSE will act as administrator of the national railway infrastructure and will be responsible for the maintenance and operation of the rail traffic control and security systems.
GAIAOSE will focus on the development, management and exploitation of the organisation’s considerable property assets.
ERGOSE will take responsibility for the design, construction and management of the railway infrastructure.
TRAINOSE will provide traction services for the transport of goods and passengers by rail.
Some 2,000 workers are expected to lose their jobs through transfers or retirement. Other public bodies, such as hospitals or schools, are to be asked to inform the Ministry of Interior Affairs of any vacancies for which the affected workers can apply. The list will be sent to the Ministry of Infrastructure, Transport and Networks and forwarded to each of the four new companiesWithin three days of the receipt of the list, each company’s Board of Directors is expected to ask employees to submit transfer applications. Any employees not transferred will be considered to have accepted any changes to collective and individual agreements on working conditions. Engine drivers and those employees who establish pension rights within the previous 12 months will be excluded from the transfers.
An independent Regulatory Authority for Railways is to be established,with operational, administrative and financial autonomy and reporting to the Minister of Infrastructure, Transport and Networks. It will supervise the operation of the railways market and ensure compliance with the provisions of this law.
Routes will be re-scheduled and the loss-making ones will be abolished. Disabled persons will travel free of charge.
Reactions
The workers responded by holding consecutive 24-hour strikes.The Pan-Hellenic Railway Federation (POS) announced that it will mount a legal challenge to the new law, because it privatises and reduces the railway network and abolishes the collective employment agreements. They believe it will therefore curtail workers’ rights and worsen their working conditions.
Commentary
The restructuring of OSE aims to cut costs while still providing high-quality rail transport services. However, it has yet to be seen whether this will happen: at present, because of the losses that have accrued, it has been difficult for the organisation to even cover its operating expenses.
AndaStamati, DimitraBakirtzaki, Labour Institute of Greek General Confederation of Labour (INE/GSEE)
Eurofound recommends citing this publication in the following way.
Eurofound (2011), Greek railways restructured as part of recovery plan, article.
