Which sectors are at the back of the line for collective bargaining agreements

Summary

The government team highlights the resumption of collective bargaining and wage increases as one of the most important tools for combating inflation, improving workers’ standard of living, and strengthening social cohesion.

The National Social Agreement reached last November between the government and social partners is the most striking example of this new approach, which is based on social dialogue rather than unilateral legislative measures. Already, following the enactment of the Social Agreement, very significant new collective bargaining agreements—which had been stalled for years—have been signed, leading to wage increases for more than 400,000 workers.

According to reports, significant developments are expected in the near future in sectors such as construction equipment, metalworking, and banking. In fact, according to GSEE President Yannis Panagopoulos, by October, both the Confederation and employer organizations will seek to sign collective bargaining agreements in the retail sector, the cleaning industry, and security companies.

What is the current situation?

Last week, Ms. Kerameos presented the Social Pact in Brussels, in the presence of Prime Minister Kyriakos Mitsotakis, as a European model for social dialogue aimed at increasing the coverage of workers under collective bargaining agreements.

This is an area in which Greece had for years ranked among the lowest in the European Union, with coverage hovering around 20%, well below the European average.

The need to change this situation became even more urgent following the adoption of the European directive on adequate minimum wages, which directly links worker protection to the strengthening of collective bargaining.

Within a few weeks, new sectoral agreements were signed in the restaurant industry, bakeries, and the confectionery industry, while just a few days ago the agreement for food technologists—who had been without a contract for 15 full years—was also finalized.

Delays

However, the momentum seen in the first few months did not continue at the same pace. After the initial wave of agreements, negotiations in many major sectors slowed down, and several contracts considered ready for signing were postponed until the fall.

Retail, custodial services, cleaning, security services, and digital platforms are among the sectors where discussions are ongoing without a final agreement having been reached yet. The economic environment remains a key obstacle.

Persistent inflation is fueling workers’ demands for larger pay raises, as the losses in purchasing power over the past few years continue to affect a significant portion of households. On the other hand, employers’ organizations argue that companies are facing increased energy costs, higher operating expenses, and limited capacity to absorb additional wage burdens.

Thus, the magnitude of the increases, the duration of the agreements, and the maintenance or expansion of benefits are the main points of contention in the negotiations. It is also telling that even existing agreements, such as the one in the tourism sector, are not being implemented by all employers, according to workers’ complaints. 

At the same time, the debate surrounding the Trade Union Registers (registers of trade union organizations) is causing further delays. Of course, the Kerameos Law includes significant improvements, but there are still some minor objections, with the uncertainty acting as a deterrent for certain organizations, which remain cautious about fully activating the procedures required for the extension of sectoral agreements.

Negotiations

According to Mr. Panagopoulos, the collective bargaining agreement for the Construction Equipment sector—which employs thousands of workers—is currently before the Mediation and Arbitration Organization (OMED), but the indicative mediation process is considered time-consuming. In consultation between the GSEE and the Hellenic Federation of Enterprises (SEV), the parties involved are being urged to return to the negotiating table, and provided an agreement is reached (although there remains a significant gap between workers and employers on wage issues), the collective bargaining agreement will be signed and will be universally applicable.

In the metalworking sector, there are two collective bargaining agreements: one signed by the Panhellenic Federation of Metalworkers (POEM) with the Hellenic Federation of Enterprises (SEV), and a second signed with the General Confederation of Greek Small and Medium-Sized Enterprises (GSVEE). The goal is to sign a single agreement, applicable to all, between POEM—with the participation of the General Confederation of Greek Workers (GSEE), the Hellenic Federation of Enterprises (SEV), and the General Confederation of Greek Small and Medium-Sized Enterprises (GSVEE)—which will, in fact, be applicable to all employers (both small and large).

Developments are also expected in the banking sector, with OTOE being called upon to register in the Employee Registry so that the three-year agreement already in effect for employees at systemic banks can be extended to the rest.

Furthermore, by the end of October, it is expected that there will be developments in the process of signing a collective bargaining agreement in the retail sector. The GSEE assesses that the effort to reach an agreement through the Federation of Private Sector Employees cannot continue.

According to Mr. Panagopoulos, a new federation must be created that focuses exclusively on the retail sector, so that negotiations with employer organizations can then be pursued.

There are also problems in the cleaning sector, as in addition to the private sector, there are also school cleaning staff; finally, regarding employees of private security and guarding companies, the solution lies in the creation of an Employers’ Association, primarily comprising the five largest companies in the sector.

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