Northern employers demand greater flexibility in the labour market

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In March 1998, the Federation of Industrialists of Northern Greece submitted a package of proposals on the labour market and on boosting the competitiveness of Greek businesses.

On 5 March 1998, the Federation of Industrialists of Northern Greece (SVVE) submitted a package of proposals both to the Ministry of Labour- in view of a bill on modernisation of labour relations which has been brought before Parliament - and to the other social partners. The proposals focus on the labour market and on boosting the competitiveness of Greek businesses.

The SVVE states that the factor exerting the biggest negative influence on the competitiveness of enterprises is what it sees as the current inflexibility in the labour market and labour relations, since Greece is one of the few countries in the world which has not provided an institutional framework for part-time and temporary employment. The employers' organisation identifies as another determining factor Greece's delay in reaching decisions on the organisation of working time on a long-term basis; this detracts from the competitiveness of enterprises and at the same time increases unemployment. The statement includes calls for the following specific measures:

• the statutory regulation of part-time and temporary employment, particularly as far as social insurance and pensions are concerned;

• the ability to organise working time for up to 12 hours daily and 45 hours weekly, averaged on a six-month basis, with up to 72 hours of overtime work every six months with no additional premium payment;

• the possibility of part-time temporary employment for three or four hours a day, throughout a six-day working week, aimed at fulfilling additional needs of enterprises;

• the radical amendment of Law 1648/1986 on "protection of disabled veterans and war victims and handicapped persons", aimed at preventing compulsory placements of the people involved which do not take account of enterprises' needs;

• the introduction of uniform disincentives to the employment of pensioners - the restriction of which will, it is claimed, lead to substantial absorption of people currently unemployed; and

• the subsidising by the Manpower Employment Organisation (OAED) of 70% of the pay of trainees hired by enterprises.

As yet, neither the Government nor the trade unions has taken a position on the SVVE proposals.