Observation (CEACR) - adopted 2012, published 102nd ILC session (2013)

Employment Policy Convention, 1964 (No. 122) - Greece (Ratification: 1984)

Articles 1 and 2 of the Convention. Employment policy measures implemented under the adjustment programme. The Committee notes the Government’s report received in February 2012 for the period ending in May 2011, and an additional report received in August 2012 in reply to the 2011 observation. The Government indicates in the report received in February 2012 that the current short-term decline in economic activity and the rise of unemployment are unavoidable consequences resulting from the adjustment of investment and consumer expectations as well as from the frontload and rapid fiscal consolidation, which is nevertheless necessary in order for the public debt to become manageable and for the country’s growth potential to be improved. The Government indicates that the National Reform Programme 2011–14 was prepared by following the ten guidelines included in the Joint Employment Report. In the context of the programme, under the Europe 2020 Strategy, the Government has set 70 per cent as the national target for overall employment at national level in 2020 and pointed out specific bottlenecks in the labour market. The Committee notes that challenges include bottlenecks in entering, re-entering and staying in the labour market for specific groups, such as women, young persons and older workers; the need to reinforce the central role of the Public Employment Service (PES), as well as to establish and activate decentralized intermediate structures in policy implementation; skills mismatch; and undeclared work. The Government indicates that the uncontested fact is that the obligations arising from the Memorandum of Understanding (May 2010) and its successive supplements restrict and define the framework of implementation of the national employment policy. The Committee notes the information provided by the labour inspectorate for the first five months of 2011, which points out a decrease of 27.67 per cent in full-time employment contracts and a rise of 11 per cent in rotation employment. The Government indicates that it is evident that more and more full-time employment contracts are being converted into part-time or rotation work contracts. In reply to the 2011 observation, the Government indicates in the report received in August 2012 that in the last two years, given the adverse economic conditions, a series of legislative interventions have taken place, within the framework of the Memorandum of Understanding and the relevant adjustment programmes of the country, with the aim of improving the functioning of the labour market. Moreover, the Government reports that measures are being promoted in order to improve access to basic social services, along with the effective reorganization of labour market institutions, with a view to mitigating the social impact from the crisis. Since the beginning of 2010 up to and including May 2012, more than 905,000 persons, as workers, self-employed freelancers or trainees, have joined 57 specific programmes of the Employment and Labour Organization (OAED) with a total budget of €3.5 billion relating to job retention, promotion of employment and vocational training. The Government estimates that on completion of such programmes, the beneficiaries will exceed 1.1 million persons. It also estimates that, due to these actions, the growth rate in unemployment has been reduced by 5 per cent in the 2010–11 period. The Committee notes the statistics published by the Hellenic Statistical Authority (ELSTAT) indicating that the unemployment rate in July 2012 was 25.1 per cent compared to 17.8 per cent in July 2011. The number of employed persons amounted to 3,763,142, the number of unemployed persons amounted to 1,261,604, and the number of inactive persons reached 3,356,276. Employed persons decreased by 329,086 and unemployed persons increased by 377,991 when compared with July 2011. The Committee notes from these statistics the staggeringly high youth unemployment rate with the 15–24 age group reaching 54.2 per cent unemployment in July 2012. Taking into account that the next report on the Convention is due in 2013, the Committee invites the Government to further specify how, pursuant to Article 2 of the Convention, it keeps under review the measures and policies adopted according to the results achieved in pursuit of the objectives of full, productive and freely chosen employment, specified in Article 1. It recalls that, in the terms of that Article, an active employment policy should be pursued “as a major goal”, which may be complemented by other measures to attenuate the consequences of unemployment. It also invites the Government to include in its next report information on the results of the measures adopted in order to overcome the impact of the debt crisis on the labour market, and information on the number of programme beneficiaries obtaining lasting employment.

Promotion of small and medium-sized enterprises (SMEs). The Committee notes the information on the measures to promote SMEs. These measures include a programme to support micro-, small and medium-sized enterprises in the manufacturing sector; a youth entrepreneurship and female entrepreneurship programme aiming at offering start-up support on entrepreneurial activities and creating new jobs; a clothing and footwear programme; and the new innovative entrepreneurship programme which aims at enhancing the creation of new businesses. In addition, the Government indicates that the Hellenic Fund for Entrepreneurship and Development has been established by virtue of Act No. 3912/2011 in order to improve the business climate and grant loans under favourable terms to finance investment projects. The Committee asks the Government to continue to provide information on the impact of the measures taken to improve the business environment in order to promote the development of SMEs and create employment opportunities for the unemployed.

Modernization of labour market institutions. The Committee noted in its previous observation that the Government had underscored the need to give priority to the modernization of labour market institutions. The Committee once again refers to its observation on the Employment Service Convention, 1948 (No. 88), and invites the Government to provide in its next report on Convention No. 122 further information on the effectiveness of the reorganization of its labour market institutions.

Vulnerable categories of workers. The Government states in the report received in August 2012 that policies to contain unemployment and enhance employment are top priority, especially for the vulnerable population groups that are dropped out of the labour market or are at risk of poverty and social exclusion. To this end, the Ministry of Labour is taking measures to mitigate the adverse effects of the crisis and to support the employment of the most vulnerable workers. Employment support programmes are aimed at workers and unemployed persons, focusing on population groups most affected by unemployment, such as young persons and vulnerable groups that face great difficulties in entering the labour market. Furthermore, a concerted effort is made to use the available resources and adapt programme planning to the Greek reality. With respect to young persons, the Government indicates that an employers’ subsidy programme is being implemented by the OAED, according to which the insurance contributions for pension, health-care services and occupational hazards of young persons aged 16–24 are fully subsidized by the OAED. Young unemployed people are also benefiting from programmes targeted at all unemployed persons. Some of these programmes provide special priority for young persons. Moreover, in order to facilitate youth transition into the labour market and address high unemployment rates for this age group, targeted active employment policies as well as programmes supporting youth entrepreneurship are planned and/or implemented, aiming at facilitating the integration of the youth into the labour market by enhancing their skills and acquiring work experience. To this end, the following programmes are being implemented: subsidy programmes for the acquisition of work experience for enterprises with the aim of recruiting unemployed graduates of universities and technological institutes (up to 35 years old), community service programmes in the sector of culture for young people, as well as training programmes for the youth, with the use of training vouchers so that they can acquire work experience either generally or targeted in industries. The Committee invites the Government to continue to provide information on the impact of the measures taken to ensure lasting employment for young persons and other vulnerable categories of workers.

Education and training policies. The Committee notes the information provided by the Government in the report received in August 2012 indicating that vocational training was provided to 374,798 workers through 16 programmes of the Fund for Employment and Vocational Training (LAEK) and programmes of structural adjustment. With respect to young people, 26,664 students attended vocational training programmes in 51 apprenticeship schools, 31 Vocational Training Institutes (IEK), as well as two model units for persons with disabilities. Furthermore, the Government provides information on actions taken by the Ministry of Labour, such as training programmes for unemployed persons on basic skills (computers and communications) with a view to combating unemployment and improving the professional skills of the workforce in sectors strongly affected by the economic crisis. The Committee once again invites the Government to include in its next report information on progress made to activate the National System for Linking Vocational Education and Training with Employment (ESSEEKA).

Article 3. Participation of the social partners. The Government reiterates that the social partners participate in the OAED’s Board of Directors, which decides on the preparation and implementation of the programmes designed and implemented by the OAED. It adds that the social partners also participate in the Council for Lifelong Learning and Employment. The Committee invites the Government to indicate in its next report the manner in which account is taken of the opinions and experiences of the representatives of employers’ and workers’ organizations in the formulation and implementation of the labour market measures included in the adjustment programme.