A “gap” of more than twelve percentage points separates the positions of employers and workers around the upcoming increase in the minimum wage, while the government appears to be “moving” at higher levels than the proposals of employers’ organizations, favoring the scenario that predicts an increase around at 5% with 5.5% and a new fee limit at 820 euros 825 euros, from 780 today.
The “opening” of proposals exceeds twelve percentage points. According to the proposals submitted yesterday by social partners the differences are inconsiderable. Employers are proposing increases from 3.5% (BSE) to 5% (SETE), i.e. a new minimum wage of 807 euros to 819 euros.
Employers insist that the rise should run low in line with the level of inflation in 2023, which was around 3.5%. The Bank of Greece’s proposal is also moderate, hovering around 4%.
The president of SBE
For her part, the president of the Association of Greek Industries, Mrs Lucia Sarantis he emphasizes: “At SBE we believe in the need to increase the minimum wage, which should make up for the loss of incomes in 2023. Our employees are the soul of our businesses and their practical support is a priority for all of us”, he notes and at the same time sets the criteria: “Of course, this increase is crucial to be determined by objective criteria, such as inflation and the real potential of the economy. At the same time, however, it must be able to be supported in practice by businesses, in line with the central objectives of increasing productivity and strengthening our extroversion. And most importantly, without risking becoming uncompetitive,” he says.
In addition, he states: “It is a national need to defend the competitiveness of Greek businesses, for the good of everyone – and first of all, of course, the workers themselves. This balance is needed by the economy and our society” and Mrs. Saranti suggests: “Furthermore, the proposal of the SBE is to combine the increase with tax reliefs for the beneficiaries of the minimum wage, so that it is not dissipated by the increases in necessities and energy”.
The GSEE
On the other hand, GSEE proposes an increase of approximately 16.4%, i.e. an increase of 128 euros and setting the new minimum wage at 908 euros.
So far the government – which will take the final decision – has not “opened its papers”. The only reference is that of the Minister of National Economy Mr. K. Hatzidakis that the new salary will have eight as the first number, i.e. it will be more than 800 euros.
However, estimates indicate an increase of around 40 to 45 euros, setting the minimum wage limits at 820 to 830 euros per month.
Purchasing power
Our country occupies the eighth worst position in the European ranking that compares the level of the minimum wage in units of purchasing power. In fact, the monthly salary in Greece reaches 1,031 purchasing power units and falls short of the minimum wage of countries such as Romania, Croatia, Lithuania, Slovenia and Poland.
This important element is highlighted by the analytical report of the GSEE Labor Institute, which refers to the organization’s proposal to increase the minimum wage to 908 euros.
According to the GSEE, the necessity for a significant increase in the minimum wage is also justified by the particularly low performance recorded by Greece in a series of indicators that reflect the standard of living of workers and the poorest income households. It is characteristic that in 2022 the country had the fifth highest percentage of workers at risk of poverty among EU member states. In fact, 44.5% of households with low incomes faced conditions of severe material and social deprivation.
The steep decline in the purchasing power of the minimum wage in our country – despite its successive increases in recent years – is a result of the increase in domestic prices, the higher cost of imported, mainly energy, products, but also intense speculative practices and greedy profits that they feed accuracy.
The contracts
At the same time, the GSEE raises the question of the lag that our country presents with regard to collective negotiations and collective labor agreements. According to the latest estimate of the Labor Institute, in 2023 the percentage of employees covered by collective labor agreements will reach 31%. And this at a time when the relevant EU Directive stipulates that the member states, with the participation of the social partners, should undertake an action plan in order to increase the coverage rate of collective bargaining to at least 80%.
The GSEE considers the immediate increase of the minimum wage to 908 euros per month and the reinstatement of its determination in the institution of the National General Collective Labor Agreement as absolutely necessary.
At the same time, it calls for the restoration of the protective regulations of individual and collective labor law (universality of the terms of collective labor agreements, their full retroactivity, the principle of favoring their “confluence” and extending their validity).
Finally, it requires the removal of institutional and legislative obstacles to increase the coverage of workers by collective labor agreements to a percentage of more than 80% of employees.
Source: ot.gr
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