Observation (CEACR) - adopted 2011, published 101st ILC session (2012)

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

Other comments on C122

Observation

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The Committee notes the replies provided by the Government in May 2011 to the observations on Convention No. 122 of the Greek General Confederation of Labour (GSEE) forwarded to the Government in August 2010. The GSEE provided new remarks that were forwarded to the Government in September 2011. Furthermore, the Committee takes note of the discussion that took place at the Committee on the Application of Standards during the 100th Session of the Conference (June 2011) with regard to the application by Greece of the Right to Organise and Collective Bargaining Convention, 1949 (No. 98). It notes that the Conference Committee welcomed the Government’s indication that it was working on arrangements with the ILO for the visit of a high-level mission proposed by the Committee of Experts to facilitate a comprehensive understanding of the issues raised by the GSEE in its comments concerning the application of 12 Conventions ratified by Greece including the present Convention. The Conference Committee also considered that contact with the International Monetary Fund (IMF) and the European Union (EU) would assist the Mission in its understanding of the situation (Provisional Record No. 18, Part II, pages 68–72). The Committee takes note of the report of the high-level mission which visited the country from 19–23 September 2011 and held further meetings with the EU and the IMF in Brussels and Washington, DC, in October 2011, on the basis of the request made by the Committee on the Application of Standards.

Articles 1 and 2 of the Convention. Employment policy measures implemented under the adjustment programme. The Government indicates in its May 2011 report that the economic downturn has negatively impacted the labour market and, in particular, the most vulnerable categories of workers such as low-skilled workers, people with low education levels, temporary workers and migrant workers. The economic downturn primarily affected the construction, manufacturing, tourism, financial and trade industries. The Government further indicates that, since the beginning of 2009, the ever-increasing loan cost of Greece and the downgrading of the country’s creditworthiness by international rating agencies in combination with its ever-growing deficit caused the country’s inability to meet its debt obligations. The Committee notes that the EU Council indicated in July 2011 that the 2008–2009 global economic crisis exposed vulnerabilities in the Greek economy, including: unsustainable fiscal policies, partly hidden by unreliable statistics and temporarily high revenues; rigid labour and product markets; and loss of competitiveness and rising external debt. The high-level mission to Greece was informed in September 2011 that the overall unemployment rate has risen to 16.5 per cent and youth unemployment stands at staggering 43.3 per cent. Although female unemployment officially stands at 19.9 per cent, a large proportion of women have joined the ranks of the “discouraged” jobseekers who are not accounted for in the statistics. The GSEE estimates that the projected unemployment rate will be approximately 17–18 per cent at the end of 2011. The Government reports that programmes have been implemented to increase labour market participation and to foster greater labour market mobility. Incentives include: subsidies for enterprises creating new jobs, subsidies for the unemployed starting up their own business, and support for small and medium-sized enterprises (SMEs). The Committee recalls that in May 2010 the Government accepted a Memorandum of Understanding on specific economic policy conditionality which included economic policy conditions on the basis of which financial assistance is disbursed. In this regard, the Government intends: (i) to extend the probationary period for new jobs to one year; (ii) to reduce the overall level of severance payments; (iii) to raise the minimum threshold for activating rules on collective dismissals, especially for larger companies; and (iv) to facilitate the use of temporary contracts and part-time workers. In its May 2011 communication, in reply to the GSEE’s concerns regarding collective redundancies, the Government indicated that Greek legislation was in compliance with EU Directives. With regard to the choice of the economic policy objectives and the deterioration that took place in the employment situation since 2009, the Committee invites the Government to specify in its next report how, pursuant to Article 2 of the Convention, it keeps under review the policies and measures adopted to achieve the objectives of full, productive and freely chosen employment. It further invites the Government to include information on how the measures adopted have succeeded in mitigating the impact of the debt crisis on the labour market.

Promotion of small and medium-sized enterprises. The Committee notes the measures implemented by the Government to simplify and accelerate the process of establishing, licensing and operating SMEs. It also notes the establishment of regional one-stop shops to promote entrepreneurship and support SMEs. The high-level mission to Greece was informed that approximately 90 per cent of all workers were employed in enterprises with less than 20 workers, and only 6 per cent worked in companies employing more than 50 workers. Some 75 per cent of employed persons were working in SMEs with less than ten employees. According to the data gathered by the mission, 150,000 SMEs had closed down since the crisis began (one in four SMEs) and 100,000 were expected to close in 2011. The Committee asks the Government to provide information on 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 notes that the Government has underscored the need to give priority to the modernization of labour market institutions. The Government has implemented a merger of services in 2008 between local services of the Employment and Labour Organization (OAED) and Employment Promotion Centres (KPA) in districts and cities where both operated. The public employment service will design and implement integrated regional and local employment measures aimed at promoting entrepreneurship for young persons and women. The Committee 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 that greater emphasis has been placed on active employment policies targeting young people, women and older workers. Different programmes have been implemented to improve professional qualifications of unemployed women in order to facilitate their integration in the labour market. The Committee notes that the employment policies targeting women aim at increasing their employment rate to 52 per cent in 2013. With regards to young persons, the Government reports that different programmes have been implemented including: “One Start, One Chance” to support 40,000 unemployed young persons who did not pursue higher education; “New Jobs” for 10,000 unemployed high-school graduates under the age of 30; and lastly, a programme to promote youth business initiatives. In its May 2011 communication, the Government also describes additional measures aimed at promoting youth employment. The Committee invites the Government to provide information on the impact of measures taken to ensure lasting employment for vulnerable categories of workers.

Education and training policies. The Committee notes that continuous vocational training schemes will be gradually transformed to articulate apprenticeship systems combining classroom education, on-the-job training and in-work practice. The Government also intends to encourage employers, particularly SMEs, to employ more apprentices. The Committee further notes the information provided by the Government to the high-level mission to Greece indicating that a programme, essentially an internship programme, was established under the auspices of the OAED which aims to help young persons enter the labour market through contracts to obtain work experience. The Government indicated that the programme’s initial results were disappointing and legislation was modified in July 2011. The Committee further notes the Government’s efforts in identifying the needs of the labour market and linking vocational training to employment, as well as its plan to establish 15 life-long learning institutes. The Government reports on the creation of a specialized body to promote continuous vocational training and increase the participation of employers and workers. The Committee 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). Please also provide information regarding the progress made in investing in workers’ skills development.

Article 3. Participation of the social partners. The Committee notes the strong concerns expressed by the GSEE that social dialogue degenerated into a summary, informative and superficial procedure. In the report received in May 2011, the Government indicates that consultation with the social partners is pursued to the greatest extent when reviewing employment legislation. The high level mission to Greece noted that, in the field of employment, there appears to be a strong desire from all social partners for the promotion and development of sustainable SMEs, skills development and active labour market policies. The Committee recalls the role to be played by active labour market policies in addressing the human dimension of the financial and economic crisis. In its concluding remarks of the 2010 General Survey concerning employment instruments, the Committee emphasized that social dialogue is essential in normal times and becomes even more so in times of crisis (paragraph 794 of the 2010 General Survey). The Committee invites the Government to indicate in its next report the manner in which account is taken of the opinions and experience of the representatives of employers’ and workers’ organizations in the formulation and implementation of the labour market measures included in the adjustment programme.

[The Government is asked to reply in detail to the present comments in 2012.]