The revival of the institution of arbitration in order to strengthen the processes of collective negotiations and the signing of collective labor contracts is provided for by an amendment tabled by the Parliamentary Group of PASOK, led by Nikos Androulakis.

“As PASOK we have proven and declared our belief in the value of collective bargaining and social dialogue and with this amendment we propose the abolition of the provisions of article 57 of the law. 4639/2019 and the reinstatement of the existing corresponding provisions, in order to effectively revive the institution of arbitration and, therefore, to strengthen the procedures of collective negotiations and the signing of collective agreements”, states the explanatory statement of the amendment which was submitted to the draft law of the Ministry of Labor and Social Security “Incorporation of Directive (EU) 2022/2041 of the European Parliament and of the Council of 19 October 2022 on adequate minimum wages in the European Union – Adjustment of salaries of public sector staff – Arrangements for fixing the minimum wage for the years 2025, 2026 and 2027′.

As PASOK points out, Directive 2022/2041 of the European Parliament seeks the strengthening collective bargaining between the social partners. It even emphasizes in paragraph 25: “Member States with a high percentage of collective bargaining coverage tend to have a small percentage of low-wage workers and high minimum wages. Member States with a small proportion of low-wage workers have a collective bargaining coverage rate of over 80%. Similarly, the majority of Member States with high levels of minimum wages relative to the average wage have collective bargaining coverage of more than 80%. Therefore, each member state with coverage rate from collective bargaining below 80% should adopt measures to strengthen such collective bargaining’.

It is also noted that the percentage of coverage of employees in Greece by collective agreements, not more than 30% and thus the country takes the second worst position in the EU, behind only Poland. “An important role in this regression was played by the provision of article 57 of the law. 4635/2019, by which the present Government of the Republic of N.D. replaced the provision of article 16 of n. 1876/90 (as replaced by par. 3 of article 4 of Law 4303/2014), since 25% of the sectoral and 1/3 of the homoprofessional S.S.E. were reproduced through the unilateral appeal to the Arbitration. before the crisis. Thus, with this legislative intervention, Arbitration as a means of resolving collective disputes has almost disappeared”, reports the Parliamentary Group of PASOK.

What does the minimum wage amendment provide for?

With one more amendment, the Parliamentary Group of PASOK proposes to restore the system determining the minimum wage/daily wage exclusively with the National General Collective Labor Agreement (EAGSE), following negotiations between the social partners, i.e. the leading organizations of workers and employers.

As mentioned in the explanatory report, today, the necessity of adopting this amendment, in view of the country’s obligation to incorporate Directive (EU) 2022/2041 into national law, is more necessary than ever. And this because this is proven to be the process that supports workers, society and the economy.

According to what the Directive defines, “Member States with a high rate of coverage by collective bargaining tend to they have a small percentage of low-wage workers and high minimum wages. Member States with a small proportion of low-wage workers have a collective bargaining coverage rate of over 80%. Similarly, the majority of Member States with high levels of minimum wages relative to the average wage have collective bargaining coverage of more than 80%. Therefore, each Member State with a collective bargaining coverage rate of less than 80% should adopt measures to strengthen such collective bargaining. Each Member State in which collective bargaining coverage falls short of the minimum threshold of 80% should establish a framework with the necessary favorable conditions for collective bargaining and draw up an action plan to promote collective bargaining in order to gradually increase the coverage rate from collective bargaining”.

However, it is also worth describing the state of society and the labor market in 2024, reports the Parliamentary Group of PASOK and points out that:

  • “the percentage of Greek workers covered by SSE falls short not of the 80% set by the Directive but of 30%, while at the same time, according to a GSEE survey, the vast majority of workers (85%) consider that the collective contracts are a necessary condition for better working conditions,
  • the purchasing power of workers is almost at the nadir in the EU. since we surpass (still…) only that of workers in Bulgaria,
  • with the responsibility of the Government, labor relations have been deregulated, with the result that in Greece the share of wages is the second lowest in the EU, while the share of profits is the third highest, a stark proof of the great increase in inequalities,
  • Greece is at the bottom of quality jobs and at the same time workers work more not only than all Europeans but even Japanese and Americans,
  • according to EL.STAT., our country records the second highest percentage of the population at risk of poverty in the Eurozone”.

Following the above and because:

  • “the improvement of living and working conditions is absolutely necessary in order to achieve upward social convergence, the reduction of wage inequality and, therefore, the strengthening of social cohesion and because in order to achieve these, a) the adequacy of legal minimum wages is required /daily wages, b) the promotion of collective negotiations to determine wages, so that at least 80% of employees are covered by SSE,
  • the most suitable method for the real improvement of the purchasing power of the workers is to restore the full regulatory plan of the EGSSE and to strengthen the collective bargaining system,
  • all social partners have declared their faith in the value of social dialogue and recognize the credibility of EGSSE”, PASOK proposes the specific amendment by which:
  • the process of determining the basic salary and daily wage reverts to the Social Partners who, through negotiations, sign a National General Collective Labor Agreement, as determined by article 8 of Law 1876/1990,
  • the par. 2 of sub-paragraph IA6 of Law 4254/2014 is repealed, in order to provide for seniority increments in the final determination of the salary and daily wage, based on the three years,
  • the provision of Law 4093/2012 which provides that the scope of the E.G.S.S.E. limited to non-wage conditions, is abolished.