Greece reaches landmark agreement on collective labor contracts

The government, employers, and labor unions have reached an agreement on collective labor contracts, with the Ministry of Labor describing the deal as ushering in a “new era” with benefits for all parties and ending the bailout-era restrictions that had limited collective bargaining.

The agreement includes measures to make the extension of sectoral agreements easier and simplifies the registration process for employers and employees. It also restores full protection for workers after the expiration of a contract, returning to the pre-bailout system. Under the new rules, all terms of a collective agreement remain in effect for three months after its expiration, until a new collective or individual contract is signed. Workers hired during this extension period are also covered.

In addition, the agreement introduces faster and more effective procedures for resolving disputes between employers and employees.

“We have reached a social agreement that opens a new era for collective contracts,” Labor Minister Niki Kerameus said. “This agreement benefits both workers and businesses and demonstrates that dialogue is essential,” she added, noting that collective labor contracts lead to higher wages, better working conditions, stronger bargaining power for employees, and healthy competition among businesses.

Yiannis Panagopoulos, head of the General Confederation of Greek Labor (GSEE), described the deal as a step toward “a broader social contract.”