Observation (CEACR) - adopted 2014, published 104th ILC session (2015)

Protection of Wages Convention, 1949 (No. 95) - Greece (Ratification: 1955)

Article 11 of the Convention. Wage claims as privileged debts in bankruptcy proceedings. The Committee recalls that, in its last observation, it noted that a wage guarantee institution was a useful complement to the privileged protection of wage claims afforded by this Article of the Convention and requested the Government to provide additional information on the impact the current economic crisis might have had on the operation of the fund. In its latest report, the Government does not provide any new information on this point. The Government’s report does not clarify how the wage guarantee fund is currently operating in practice, and whether any problems are encountered. The Committee reiterates its previous request to provide up to date information on the operation of the wage guarantee fund with particular attention to the impact caused by the current economic and financial crisis and various austerity measures implemented in response to the crisis, including, for instance, the information on the fund’s financial stability and the number and percentage of workers of bankrupt companies who benefitted from the payment from the fund of the unpaid portion of their wages.

Article 12. Timely payment of wages. Prompt settlement of wages upon termination of employment. In its previous comment, the Committee urged the Government to continue to take active steps in order to prevent the spread of problems of non-payment or delayed payment of wages. In addition, concerned about the wage cuts in the public sector and the reduction of the national minimum wage, the Committee urged the Government to fully consult the representative employers’ and workers’ organizations before the adoption of any new austerity measures, to avoid any new curtailment of workers’ rights in respect of wage protection, and to seek to restore the purchasing power of workers’ wages. It also requested to provide a comprehensive report on all wage-related measures adopted in the context of the financial crisis, any tripartite consultations held prior to their adoption and on the social impact of those measures.

The Committee notes the information provided by the Government in its report concerning ongoing difficulties experienced in the timely payment of wages. In particular, it notes the information on the number of cases of fines, complaints, and labour disputes, as recorded by the labour inspectorate (SEPE) on cases of non-payment or delayed payment of wages between 2011 and April 2013. According to this information, 10.2 per cent of all cases of fines, and 75 per cent of labour disputes, are related to non-payment or delayed payment of wages. The Committee also notes the Government’s indication that the cases of non-payment or delayed payment of wages and holiday pay, allowances and bonuses are steadily increasing. In this connection, it notes the report on the results of a survey conducted by the Small Enterprises’ Institute (IME) of the Hellenic Confederation of Professionals, Craftsmen and Merchants (GSEVEE). In particular, the findings indicate that 51.4 per cent of the surveyed enterprises face difficulties in the timely payment of wages. 43.2 per cent of the respondent companies owe contributions to the Self-employed Insurance Organisation (OAEE) and 22.6 per cent, to the social security fund. These enterprises are facing difficulties also with meeting tax obligations and payment for public utilities.

The Committee notes the Government’s reply referring to various provisions of the Civil Code concerning the protection of workers in case of non-timely payment of wages, but they do not appear to provide for the prevention of, or sanction against, non-payment or delayed payment of wages. Given the current situation described above, the Committee reiterates its serious concern over the continuation of cases of non-payment or delayed payment of wages. It considers that the current situation continues to pose difficulties for workers and their families whose income has already been substantially decreased through the implementation of austerity measures including reductions of wages and benefits. The Committee requests the Government to take all possible measures, legislative or otherwise, to ensure the payment of wages on time and in full, and to provide information on their results achieved. It also requests the Government to continue to provide information on the development of the situation of non-payment or delayed payment of wages, including, for instance, the amount of wages in arrears and recovered.

With respect to the wage cuts in the public sector, the Committee notes the information provided by the Government that public officers are no longer entitled as from 1 January 2013 to the holiday allowances and Christmas and Easter bonuses by virtue of section 1, paragraph C(C1) of Act No. 4093/2012. This is an additional element to a set of measures already in place and reported previously, which have reduced basic wages and allowances of these public sector workers. In this connection, the Committee understands that the Council of State, the highest administrative court of Greece, ruled in January 2014 that wage cuts implemented in 2012 with respect to the police and armed forces were unconstitutional, and that the workers concerned must be reimbursed. The Committee also understands that under Act No. 4172/2013, some public positions have been abolished and workers occupying these positions have been placed on so-called “non-active” or “mobility” status at reduced wage for a period of up to eight months during which the possibility of employment in another position in the public sector is sought. It also understands that this measure is expected to result in a total of 25,000 public sector workers being placed in the non-active status, and that 5,000 public officers will retire or be dismissed. The Committee observes that these measures, although they are part of efforts to reduce the national budget, have an extensive negative effect over the standard of living of public workers, who will receive reduced wages and allowances and no holiday allowances.

With respect to the national minimum wage, the Committee notes the information provided by the Government in its report on the new mechanism for fixing the national minimum wage rates provided for under Act No. 4172/2013, which, according to the Government, strengthened the role of social partners. The Committee notes, however, the Government’s indication that the new mechanism will enter into force after the implementation of the fiscal adjustment programmes, that is, not before 1 January 2017. Until then, the rates prescribed under the Act of the Council of Ministers No. 6 of February 2012 will continue to apply, which reduces the previous rates by 22 per cent for workers of 25 years of age or older and by 32 per cent for workers younger than 25 years of age.

With respect to tripartite consultations on wage-related matters, the Committee notes the Government’s references to other activities such as holding tripartite workshops on social dialogue and conclusion of agreements between the Government and the ILO on various projects. While these initiatives are welcome steps in a broader context of achieving job-rich recovery from the current difficult economic situation, they are not specifically related to tripartite consultation prior to the adoption of any new austerity measures.

As the abovementioned measures reported by the Government are yet to be operationalized or to achieve results through specific activities, the Committee requests the Government to contemplate adopting additional measures to avoid further adverse impact on workers in respect of wage protection. The Committee also reiterates its previous request to the Government to ensure that employers’ and workers’ representatives are fully consulted before the adoption of any new austerity measures. The Government is also requested to continue to provide information on any measures taken or envisaged on these matters and the results achieved.

[The Government is asked to reply in detail to the present comments in 2015.]