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Labor market liberalization in Greece again to come under scrutiny by creditors

By S. Papapetros
[email protected]

A closely watched agenda of issues in upcoming negotiations to conclude the third review of the Greek bailout program will be labor market reforms, given the political “sensitivity” entailed for the embattled leftist-rightist coalition government and the insistence of creditors – especially the IMF – to push through liberalization as an ingredient for jump-starting the country.

As “N” has repeatedly reported in the past, creditors want changes on the legal procedure followed by first instance unions for declaring strikes and work stoppages, a “prior action” carried over from the second review, which was concluded last June after a year and a half of delay.

According to the government side, however, revisions of the landmark 1982 law were made prior to the last review towards satisfying creditors’ demands. What remains to be seen is whether creditors’ auditors agree with Athens that the specific law was fundamentally revised. The primary goal, as expressed by creditors, is to mandate that an industrial action is approved by 50+1 of the wage-earners of an affected business or sector through a vote, and not by a majority of those attending an extraordinary general assembly.

Unless a union’s charter states otherwise, under the current law one-third of members who are current in terms of dues is required for holding such assemblies.

A five-point agreement, dating to the summer of 2015, between social partners and employers’ groups is already in place, with the highlight being that the specific law (1264/1982) should be modernized, especially in order to preclude “practices of poor implementation”. Conversely, the agreement does not dispute workers’ right to strike and constitutionally protected union activity.