New National General Collective Agreement Signed

Download article in original language : GR9805171NEL.DOC

On 18 May 1998, after six months of hard bargaining, Greece's new National General Collective Agreement was signed. Despite predictions to the contrary, the deal will be in force for the two-year period 1998-9.

A new two-year National General Collective Agreement was signed on 18 May 1998 by the Greek General Confederation of Labour (GSEE), the Federation of Greek Industries (SEV), the General Confederation of Greek Small Businesses and Trades (GSEVEE) and theNational Confederation of Greek Commerce (ESEE). The deal, which was reached after lengthy and difficult talks (GR9804167N), seeks to take into account the need to achieve the Government's objectives for 1998-9 in view of EU Economic and Monetary Union (EMU), in the belief that a similar spirit will prevail in agreements at branch level and/or at other levels.

The content of the agreement concerns percentage wage and salary increases for lower-paid workers, as well as regulations of an institutional nature. As regards workers' pay for 1998, the agreement provides for a 2.7% increase for the first six months, followed by a 2% increase for the second six months. In the event that inflation exceeds 3.5% in 1998, a corrective sum of up to 1% will be paid on 1 January 1999 if inflation is up to 4%. The agreement foresees a 1.4% increase in the first half of 1999 and another 1.4% in the second half. Increases for 1999 are based on a projected inflation rate of 2%. If inflation in 1998 exceeds 4.5%, the corrective sum will be paid on 31 December 1999, whereas if inflation in 1999 exceeds 2%, the total extra amount will be paid beginning on 1 January 2000.

The principal regulations of an institutional nature concern:

• paid annual leave. Beginning in 1998, paid annual leave is increased to five weeks for those who have completed 15 years of employment (including previous employment) with the same employer, or 17 years with a different employer - this works out at 25 working days for people working five-day weeks, and 30 working days for people working six-day weeks. After 1 January 1999, the qualifying periods of employment will decreased to 12 and 14 years respectively;

• medical benefits. Recognising the need to provide medical benefits to unemployed young people under 29 years of age not covered by an insurance fund, the parties to the agreement have decided to provide them with insurance coverage out of resources of the Fund for Employment and Vocational Training LAEK) and the special resources of its unemployment department, through an agreement with the Social Insurance Foundation (IKA), following a relevant study of the economic data; and

• protection of workers whose status resembles paid employment. The parties have agreed to take necessary action to promote the equal treatment of workers who, although they are not bound by a dependent employment relationship, provide labour under conditions of dependence and demonstrate a need for protection similar to that of wage-earners in dependent employment, particularly in terms of training, equality between the sexes, employment, health and insurance.

Both the employers' organisations and the GSEE have declared themselves satisfied with the outcome of the new agreement, although they have not commented on its content in detail. However, although the president of the GSEE says that the new collective agreement secures and to some degree boosts workers' spending power, other GSEE representatives maintain that it does not meet workers' needs.