Greece is preparing to reset its system of collective labor agreements, moving from policy intent to implementation as a ministerial decision expected in the coming days lays out the timeline, procedures and scope of negotiations between employers and unions.
The decision, to be signed by Labor Minister Niki Kerameus, will operationalize the deal struck by social partners, spelling out a step-by-step road map before talks begin, deadlines for concluding negotiations, and the mechanism for extending agreements across entire sectors.
Wage impact with a 2026 horizon
The thawing of collective agreements restores social partners as the primary negotiators on pay and workplace rules—after years in which the statutory minimum wage became the dominant benchmark.
Early estimates point to base pay increases above 10%, with total gains—including allowances—reaching up to 20% above the minimum wage. As a result, many workers currently paid at the floor are expected to migrate to higher sectoral wage scales.
The shift matters amid elevated living costs and sustained pressure on disposable income.
What changes in the rulebook
The social partners’ accord—anchoring the ministerial decision—introduces several structural changes:
- Lower employer representativeness threshold from 50% to 40%, enabling a sectoral agreement to be extended to all workers in that sector.
- Co-signing by third-tier union and employer bodies, increasing the likelihood of broad coverage.
- Full reinstatement of post-expiry protection (after-effects), ensuring workers retain all pay terms and benefits after a contract lapses—not just base pay and four allowances, as under current rules.
- Unilateral access to arbitration via OMED for workers—subject to review by an intermediate committee—without requiring employer consent.
- Mandatory registration of employer and union organizations in the Labor Ministry’s registries (GEMIOE and GEMISOE) as a precondition for participation.
Three stress tests
Whether more—and stronger—sectoral agreements emerge will hinge on three factors: First, whether extensions can proceed even when negotiating employers represent less than 40% of sector employment. Second, whether full after-effects are applied cleanly, avoiding gaps once contracts expire. Third, whether talks deliver meaningful wage gains or stall.
Next step: legislation
Following the decision, the government plans to submit a new labor bill in the first quarter of 2026, codifying the framework for wage increases driven by collective bargaining.
For policymakers, the overhaul is a bet on social cohesion. For businesses and workers alike, it’s a test of balance between competitiveness and income redistribution.
Source: pagenews.gr