FREE ELECTRONIC LIBRARY - Dissertations, online materials

Pages:   || 2 | 3 | 4 | 5 |   ...   | 12 |

«GOVERNANCE Working Paper No. 53 Assessing the impact of the memoranda on Greek labour market and labour relations Apostolos Dedoussopoulos Valia ...»

-- [ Page 1 ] --

GOVERNANCE Working Paper No. 53

Assessing the impact

of the memoranda

on Greek labour market

and labour relations

Apostolos Dedoussopoulos

Valia Aranitou

Franciscos Koutentakis Project financed

by the European

Marina Maropoulou Commission

November 2013


and Tripartism


Working Paper No. 53

Project financed

by the European


Assessing the impact of the memoranda

on Greek labour market and labour relations

Apostolos Dedoussopoulos

in collaboration with Valia Aranitou Franciscos Koutentakis Marina Maropoulou Governance and Tripartism Department International Labour Office • Geneva November 2013 Copyright © International Labour Organization 2013 First published 2013 Publications of the International Labour Office enjoy copyright under Protocol 2 of the Universal Copyright Convention. Nevertheless, short excerpts from them may be reproduced without authorization, on condition that the source is indicated.

For rights of reproduction or translation, application should be made to ILO Publications (Rights and Permissions), International Labour Office, CH–1211 Geneva 22, Switzerland, or by email:

pubdroit@ilo.org. The International Labour Office welcomes such applications.

Libraries, institutions and other users registered with reproduction rights organizations may make copies in accordance with the licences issued to them for this purpose. Visit www.ifrro.org to find the reproduction rights organization in your country.

ILO Cataloguing in Publication Data Dedoussopoulos, Apostolos; Aranitou, Valia; Koutentakis, Franciscos; Maropoulou, Marina Assessing the impact of the memoranda on Greek labour market and labour relations / Apostolos Dedoussopoulos, in collaboration with Valia Aranitou, Franciscos Koutentakis, Marina Maropoulou ; International Labour Office, Governance and Tripartism Department. – Geneva: ILO, 2013 GOVERNANCE working paper ; No.53; ISSN 2226–7433; 2226–7840 International Labour Office; Governance and Tripartism Dept labour market / employment / unemployment / labour relations / collective bargaining / social dialogue / economic recession / Greece 13.01.2 The designations employed in ILO publications, which are in conformity with United Nations practice, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the International Labour Office concerning the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers The responsibility for opinions expressed in signed articles, studies and other contributions rests solely with their authors, and publication does not constitute an endorsement by the International Labour Office of the opinions expressed in them.

Reference to names of firms and commercial products and processes does not imply their endorsement by the International Labour Office, and any failure to mention a particular firm, commercial product or process is not a sign of disapproval.

ILO publications and electronic products can be obtained through major booksellers or ILO local offices in many countries, or direct from ILO Publications, International Labour Office, CH–1211 Geneva 22, Switzerland.

Catalogues or lists of new publications are available free of charge from the above address, or by email:

pubvente@ilo.org Visit our web site: www.ilo.org/publns

Printed in SwitzerlandForeword

This paper is part of a series of studies funded by the European Commission in the framework of a project of the International Labour Organization (ILO) on “Promoting a balanced and inclusive recovery from the crisis in Europe through sound industrial relations and social dialogue”. The project falls under a recent partnership agreement between the ILO and the European Commission, which aims to study the impact of the crisis and crisis-response policies on national tripartite social dialogue, collective bargaining and labour law in the Member States of the ILO and the European Union (EU), and the role of social dialogue actors and institutions in this context. The project builds on ILO research initiated since 2008 on best practices in the area of crisis responses, and the Global Jobs Pact adopted by the International Labour Conference in June 2009.

This study on Greece by Apostolos Dedoussopoulos (Panteion University) in collaboration with Valia Aranitou (University of Crete); Franciscos Koutentakis (University of Crete); Marina Maropoulou (University of Athens) examines the impact of the labour market measures adopted and implemented under the Memoranda of Understanding concluded between the Greek Government and the so-called “Troika” (IMF, EC, and ECB). Two and a half years after the first Memorandum, debates on the necessity and effectiveness of the policy fiercely continue not only among Greek policymakers and economists but also among the “troika” partners.

These debates have arisen due to the social impact of the advocated policies as well as the difficulties encountered in achieving specifically set targets (i.e., the management of public debt, restoring economic growth and improving labour market prospects).

Currently, the Greek economy remains caught in a recessionary spiral with negative results for social cohesion, productivity, labour market institutions and mechanisms.

An earlier version of the paper was presented and debated at the ILO-EU research workshop on “The governance of policy reforms in Europe: Social dialogue actors and institutions in times of economic downturn and austerity” (28–29 May 2012, Geneva, Switzerland).

The responsibility for opinions expressed in this paper rests solely with its authors, and its publication does not constitute an endorsement by the Governance and Tripartism Department of the International Labour Office, or the European Commission.

–  –  –



1. Overview

1.1 Introduction

1.2 Context

1.2.1 Macroeconomic background

1.2.2 External trade and competitiveness

1.2.3 Questions of policy effectiveness

2. The Greek labour market

2.1 Structure and trends

2.1.1 Employment

2.1.2 Evidence of flexibility in the Greek labour market

2.2 Employment in times of crisis

2.3 The unemployment rate

3. Industrial relations, collective bargaining and social dialogue under the memoranda and austerity policies

3.1 Introduction

3.2 Policy formation

3.3 Policy content: Rationale

3.4 Policy content: Classification

3.4.1 Phases

3.4.2 The reforms in collective agreement law

3.4.3 The reform of the mediation and arbitration institution

3.4.4 The reform of individual labour contracts

4. Results of the reforms: Preliminary evidence

5. The role of social partners

6. Additional remarks


–  –  –

1.1 Introduction The financial crisis of 2008 has had a strong impact on the Greek economy, as well as on the economies of other euro countries. The Greek economy in 2009 exhibited a doubleedged weakness in terms of budget deficits and a mounting public debt combined with an increasing external trade deficit. Both of these had been partly offset in the past by financial resources available within the functioning of EU Funds and policies. In 2010, the Greek Government decided to advocate a “rescue” plan (Memorandum I in April 2010) which has been since then continuously reformed and extended (notably in July 2011 and in February 2012, the so-called Memorandum II, which included a “haircut” of the public debt).

The events that led to these developments are highly debated. There are still remaining questions unresolved about the extent of the problem, its management by the then Government and the rationale for the policy advocated. The main issues involved are briefly raised below.

Was the Greek crisis a specifically “Greek” crisis, or was it the result of the financial crisis in 2007–2008? Though such a question may seem superficial, it is worth noting that the Greek Government approached the issue as if it resulted solely from mismanagement in the past. As a result, the Government over-dramatized the situation,1 interest rates in the financial markets increased rapidly and the burden of refinancing accumulated public debt became unbearable. In conceiving the “Greek crisis” as a specifically Greek one, the Government created the wrong psychology in the financial markets, allowing speculation to take place on the country's borrowing needs and the euro.

There are some conjectures about why the Government acted this way. One may list a number of possible explanations: the decision of the Government not to implement promises made at the election campaign in September 2009; its fear that planned but not officially announced reforms would be fiercely opposed, which led it to choose to impose a “shock treatment”; pressures from dominant business interests; or merely its own inadequacy. These may be considered alternative or combined reasons for its decision.

However, the end result of this public rhetoric on the crisis has been simple: if Greece is responsible for its own crisis, the Greek people have to pay the price. This might explain both the reaction of certain European countries and several press publications at the time. It also explains why aspects of the Memoranda Agreements have taken the form of a vindictive policy.

Such a conceptualization of the Greek crisis was more than welcomed by the EU institutions. On the one hand, it eased the pressure for major reconsiderations of policies and institutional changes in times of hard financial conditions. On the other hand, the Greek Memorandum I provided a guiding post for the offensively called “PIIGS”.2 In this sense, the EU lost an opportunity for a major reform towards economic and political unification, which relates to the current problems it faces.

It is clear that a different approach, i.e. conceptualizing the Greek crisis as part of the international and European crisis, would have proven more fruitful. Under such an approach, the possibility of an alliance between the southern European countries and a renegotiation of European policies and institutional settings might have been explored.

The then Finance Minister referred frequently to the “sinking Titanic” and whenever he issued a press release the interest rate on public debt was raised.

Portugal, Italy, Ireland, Greece, Spain.

Given that the political choice was made and Memorandum I was adopted, has this policy been effective in terms of its own goals?

The simple mathematics of the relations of the public debt require, for the share of the public debt in gross domestic product (GDP) to be reduced, either a rate of growth in excess of the interest rate with a balanced budget or a surplus budget at a rate capable of offsetting any difference between the interest rate and the growth rate. Calculations of the dynamics of the Greek debt ratio conducted by several economists at the time3 concluded that the Greek debt was unmanageable – even if the very optimistic macroeconomic scenario indicated in Memorandum I had been realized.

In a recent book, P. Roumeliotis,4 former representative of Greece to the IMF, revealed that IMF officials had been convinced that the Greek debt had become unmanageable and they suggested a major haircut before signing Memorandum I. This suggestion was rejected by both the Greek Government and the EU.5 In relation to the macroeconomic model IMF has been using to estimate the impact of the fiscal measures, the IMF World Economic Outlook 2012 (October 2012)6 carries an important revision stating that the size of the fiscal multiplier should be revised from an average 0.5 to multipliers ranging from 0.9 to 1.7. This implies that the impact of budget deficit cuts on growth rates (and hence unemployment) has been severely underestimated.

The authors’ own rough estimate of the size of fiscal multiplier for Greece is around 1.3.

This means that the 13.5 billion euro in fiscal cuts decided in September 2012 will result in a 9 per cent recession for the succeeding two years depending on the time structure of the measures. An additional impact on recession will be brought about by the wage cuts in the private sector and the increasing death rate of enterprises – especially those of small and medium size.

It is not the author's intention to review the fast-growing literature on the causes of the “Greek problem”. Reference should be made to the works of J. Manolopoulos (2011), C. Lapavitsas’ numerous working papers for the University of London's School of Oriental and African Studies (SOAS) and press articles, G. Varoufakis' analysis and policy proposals mostly presented in his blog, and to the publications of J. Geanakoplos (2011) as well as E. Laskos and E. Tsakalotos (2011). The common ground of these works is to analyse the Greek crisis as part and parcel of the world financial crisis and of the role of financial institutions, in sharp contrast to the conceptualization of the crisis mechanisms advocated both by the Greek Government and by the troika. Such a conceptualization reduces the crisis to its phenomena, i.e. public deficit and external trade deficit. The authors argue that even if they had adopted this view, the policy conclusions would have to be different.

Turning to the numbers of the Greek crisis, the budget deficit in 2009 stood at

15.6 per cent of GDP while public debt amounted to 129.3 per cent of GDP in the same year. Interest rates on Greek public loans had been climbing, making further borrowing extremely costly for the Greek economy. The response of the newly elected Greek Government (October 2009) was to come to an agreement with the European Union, the European Central Bank and the International Monetary Fund (Memorandum I). The agreement provided new loans for the Greek State and established a rather ambiguous programme of public-sector cuts and restructuring, and increased taxation on wage earners, pensioners and independent professionals. It also contained a number of policy proposals, See, for example, R. Janssen, 2010, Greece and the IMF: Who Exactly Is Being Saved?, CEPR.

Pages:   || 2 | 3 | 4 | 5 |   ...   | 12 |

Similar works:

«International Journal of Economics, Commerce and Management United Kingdom Vol. IV, Issue 10, October 2016 http://ijecm.co.uk/ ISSN 2348 0386 THE IMPACT OF MAQASHID SYARIAH AND CORE COMPETENCY ON PERFORMANCE OF ISLAMIC BANK Irfan Soleh Doctoral Program of Management and Business, Padjajaran University, Indonesia Irfansoleh87@gmail.com Abstract The purpose of this study is to find solutions for problems related to the performance of Islamic banking in relation to the maqashid Sharia and Core...»

«The Application of Waste Minimisation to Business Management to Improve Environmental Performance in the Food and Drink Industry M Poonprasit, P S Phillips, A Smith, W Wirojanagud, D Naseby May 2005 1. Introduction The food and drink industry is one of the major sectors in the UK and makes a significant contribution to national and regional economies. The sector produces a large amount of waste compared to other industries and it faces increasing demands to improve resource efficiency and...»

«Revista de Economía y Estadística Vol. XLVII N˚ 2 (2009) pp 4166 Instituto de Economía y Finanzas Facultad de Ciencias Económicas Universidad Nacional de Córdoba Argentina Fiscal Transfers, Public Sector Wage Premium and the Effects on Private Wages* CAPELLO, MARCELO Facultad de Ciencias Económicas (UNC). Instituto de Estudios sobre la Realidad Argentina y Latinoamericana.(IERAL).FIGUERAS, ALBERTO Facultad de Ciencias Económicas (UNC). FREILLE, SEBASTIÁN Facultad de Ciencia Política y...»

«The Information and Communication Technologies impact on the MENA countries growth performance Imene Guetat Faculte de Droit et des sciences economiques et Politiques de Sousse-Tunisia. TEAM-Paris 1 iguetat@yahoo.fr guetat@univ-paris1.fr Imed Drine UNU-WIDER World Institute for Development Economics Research Helsinki-Finland. Imed@wider.unu.edu Abstract This article aims at testing the effect of Information and Communication Technologies (ICT) on growth performance of the MENA countries. This...»

«THE GOVERNMENT WANTS YOUR PROPERTY. NOW WHAT? The Basics of Eminent Domain for Property and Business Owners What Is Eminent Domain?  What Are You Entitled To?  What Do You Need To Do?  www.allenmatkins.com TABLE OF CONTENTS Page Eminent Domain Basics What Can You Expect To Happen? What is Just Compensation? What Other Compensation May the Owner of the Property Recover? What if the Property is Rented? What if Only Part of the Property is Taken? What Compensation is Available to the...»

«Overview The fifth annual Bright P-12 College Second hand snow gear sale took place on Saturday 23rd May 2015, 9:00am – 12:00pm. Registrations of sale items were tagged and put into the sale on Friday 22nd May, 3:00pm – 7:00pm. The sale is one of the Bright College Snowsports Team fundraisers and is run and managed by a group of volunteers associated with the BCST. The money raised supports the programs and events which the BCST manage and coordinate. The sale is an on-sell of vendors goods...»

«Pre-print version The challenges and opportunities of ‘nudging’1 Codagnone C, Veltri GA, Lupiáñez-Villanueva F, Bogliacino F Abstract This article discusses libertarian paternalism, the philosophical stance of a behavioural economics inspired policy intervention in the health domain. Based on the very foundations of behavioural economics, we make two claims: on the one hand, interventions on choice architectures are not neutral because every policy measure includes an interpersonal...»

«OECD/IMHE Quality Assessment Western Sydney Nepean QUALITY ASSURANCE IN AUSTRALIAN HIGHER EDUCATION: A CASE STUDY OF THE UNIVERSITY OF WESTERN SYDNEY NEPEAN Myriam Mikol 1. PROJECT PURPOSE Reviews of quality initiatives in higher education have become a regular part of academic life throughout the western world. The University of Western Sydney Nepean (UWS Nepean) has agreed to participate in the project organised by the Organisation of Economic Co-operation and Development on “Quality...»

«Better Buying Power 2.0 A Guide to Help You Think Achieve Affordable Programs Promote Effective Competition • Mandate affordability as a requirement • Emphasize competition strategies and creating and • Institute a system of investment planning to derive affordability caps maintaining competitive environments • Enforce affordability caps • Enforce open system architectures and effectively manage technical data rights • Increase small business roles and opportunities Control Costs...»

«June 30, 2012 How Delaware Thrives as a Corporate Tax Haven By LESLIE WAYNE WILMINGTON, Del. NOTHING about 1209 North Orange Street hints at the secrets inside. It’s a humdrum office building, a low-slung affair with a faded awning and a view of a parking garage. Hardly worth a second glance. If a first one. But behind its doors is one of the most remarkable corporate collections in the world: 1209 North Orange, you see, is the legal address of no fewer than 285,000 separate businesses. Its...»

«International Journal of Current Business and Social Sciences | IJCBSS Vol.1, Issue 2, 2014 ANALYSIS OF CORPORATE FINANCIAL DISTRESS DETERMINANTS: A SURVEY OF NON-FINANCIAL FIRMS LISTED IN THE NSE Bernard Baimwera Lecturer, Kenya Methodist University, Kenya Antony Murimi Muriuki Lecturer, The East African University, Kenya Citation: Baimwera, B. & Muriuki, A. M. (2014). Analysis of corporate financial distress determinants: A survey of non-financial firms listed in the NSE. International...»

«Alan D. Jagolinzer January 2016 Associate Professor of Accounting University of Colorado at Boulder, Leeds School of Business UCB 419, Boulder, CO 80309 jagolinzer@colorado.edu (303) 492-7437 Prior academic employment Assistant Professor of Accounting, Stanford University Graduate School of Business, 2004-2010 Academic Fellow, International Accounting Standards Board, London, Jan-June 2015 Education Ph.D. in Business Administration (Accounting), Pennsylvania State University, December 2004...»

<<  HOME   |    CONTACTS
2016 www.dissertation.xlibx.info - Dissertations, online materials

Materials of this site are available for review, all rights belong to their respective owners.
If you do not agree with the fact that your material is placed on this site, please, email us, we will within 1-2 business days delete him.