Collective Labour Agreements Return to the Forefront: The New Social Agreement and the Reshaping of Greece’s Labour Framework

Nearly fourteen years after the sweeping reforms of 2012—which abolished the universal after-effect of collective labour agreements and restricted unilateral recourse to arbitration—the Greek labour market is entering a new phase of re-regulation. The Ministry of Labour and Social Security, in cooperation with the National Social Partners, has introduced the Social Agreement for the Strengthening of Collective Labour Agreements, marking a significant shift toward reinstating and enhancing the role of collective bargaining in Greece.

A key objective of the Agreement is the facilitation of extending Collective Labour Agreements (CLAs). This is achieved by reducing the required representativeness threshold from 50% to 40%, as well as by allowing an extension without examining quantitative criteria when an agreement is jointly signed by the National Social Partners. Additionally, the Hellenic Confederation of Labour (GSEE) may participate on a supplementary basis in the conclusion of sectoral agreements when invited by one of its members. The procedures for registration in the official registries (GEMISOE and GEMIOE) are also simplified, aiming to strengthen institutional representation and streamline the extension mechanism. These changes seek to increase employee coverage from today’s 26% to approximately 80%, bringing Greece closer to prevailing Eurozone collective bargaining practices.

Equally important is the reinstatement of the full after-effect of CLAs, which restores stability and continuity in employment relations. Under the new framework, the terms of a CLA continue to apply in full for three months after expiry and remain in force thereafter until a new collective or individual agreement is concluded. This ensures uninterrupted protection of wages and working conditions, while employees hired during the extension period are also covered by the terms of the expired agreement.

The Agreement further strengthens the mechanisms for resolving collective disputes through the Organization for Mediation and Arbitration (OMED). A three-member pre-assessment committee will review the conditions for unilateral recourse to mediation and arbitration, while the abolition of the second level of arbitration accelerates the issuance of binding decisions—without affecting the right to judicial review.

Overall, the new Social Agreement is expected to reshape the landscape for both employees and employers by creating a more stable and predictable regulatory environment, enhancing uniformity of working conditions across sectors, and contributing to the gradual improvement of wages and employment standards. Several sectors—including Metalworking, Construction, Chemicals, Tourism, Insurance, and Medical Representatives—are anticipated to benefit in the near future.

This reform marks a significant return of Collective Labour Agreements to the core of Greece’s labour relations system, with a clear focus on strengthening collective protection, expanding coverage, and aligning national practice with European principles of social dialogue and collective bargaining.