Observation (CEACR) - adopted 2016, published 106th ILC session (2017)

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

The Committee notes the observations of the Greek General Confederation of Labour (GSEE) received on 31 August 2016 according to which there has been no progress regarding the application of the Convention as none of the legislative provisions which were found incompatible with the Convention have been modified or repealed. The GSEE expresses serious concerns about the number of workers suffering wage arrears and the operation and financial stability of the wage guarantee fund (operating under Manpower Employment Organisation – OAED). The Committee requests the Government to provide comments without delay in relation with these observations.

The Committee takes note of the adoption on 16 December 2015 of the Law No. 4354/2015 introducing wage adjustments and other emergency provisions for the purposes of implementing the budgetary objectives of the Structural Reform Agreement, which amends the Law No. 4093/2012 introducing emergency measures implementing Law No. 4046/2012 and approving the medium-term fiscal strategy 2013–16. The Committee will review the impact of the Law No. 4354/2015 on the application of the Convention in its next meeting.

The Committee further notes that the Government’s report has not been received. It is therefore bound to repeat its previous comments.

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. 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 data collected by the Labour Relations Units of the Labour Inspectorate (SEPE) on cases of non-payment or delayed payment of wages in 2013 and 2014. According to this information, while the complaints submitted for non-payment of earnings has sharply decreased in 2014 compared to 2013 and thus the number of fines imposed for non-payment of earnings has also decreased, the number of labour disputes for non-payment of earnings has slightly increased. While the Committee also 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, in view of the data provided, 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 reduction of wages and benefits.

With respect to the wage cuts in the public sector, the Committee notes the information provided by the Government that in compliance with various recent decisions of the Council of State, the highest administrative court of Greece, and after taking into account the current financial situation and commitments of the country, it has readjusted retroactively from 1 August 2012, the special pay scale of armed and security forces officers. Furthermore, the salaries of judges and of state legal counsel permanent staff have also been increased retroactively at the level they were before Act No. 4093/2012 entered into force. In addition, since other sections of this Act have been declared unconstitutional, wage reductions for teaching and research personnel of universities which had occurred since 2012 are being reviewed and a proposal is currently being examined to readjust the special pay scale of these workers. Finally, the Government insists on the fact that it stands against austerity policies that do not respect acquired social rights and tries to implement its programme of commitments on the basis of these considerations. In this regard, the Committee notes the Government’s indication that it has recently concluded a Memorandum of Understanding with the Institutions (the “Troika”, that is, the International Monetary Fund, the European Commission and the European Central Bank) to establish an advisory committee with the participation of various experts and the contribution of the ILO and the European Parliament, with a view to introducing a new legislative framework for a series of labour issues, in line with best practices of the European Social Model. While taking note of these positive steps, the Committee requests the Government to continue to take all possible measures, legislative or otherwise, to ensure the payment of wages on time and in full, and to provide information on the results achieved in this context. 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. 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 measures that would have an adverse impact on workers in respect of wage protection.

The Committee hopes that the Government will make every effort to take the necessary actions in the near future.