Authors: DIMITRIS SKALKOS

Title: Collective Wage Bargaining in a time of Economic Crisis: The Greek Labour Market Reforms 2010-2017

Abstract

In the context of the economic adjustment programs implemented by Greece in the period 2010-2017, a package of reforms that radically transformed the field of labour relations was introduced into the labour markets. The main feature of these labour market interventions is the decentralization of the collective bargaining system aiming at the enhancing flexibility in wage setting and, at the same time, active state guidance, as in the case of the minimum wage setting at national level. However, labour market institutions reflect historically shaped and gradually changing social norms that affect economic performance. In particular, the low level of social trust between workers, employers and the state in the period of economic recession has led to the limited effectiveness of domestic labour markets reforms, i.e. the rapid expansion of flexible employment contracts, further reductions in wages and a modest decline in unemployment, while their contribution to labour competitiveness has been comparatively limited. On the contrary, reinforcing the collective voice in the employment relationship and promoting social dialogue between the social partners through the establishment of sectoral collective bargaining with a view to reaching agreement could, under certain conditions, lead to increased economic efficiency, wage restraint and boosting employment.