Greek strike shows urgency of minimum wage directive

The general strike taking place in Greece today shows the need for national governments to fully deliver on the minimum wage directive.

A 24-hour nationwide walkout is underway to demand government action over the falling purchasing power of working people caused by low pay and skyrocketing rents and prices.

The average salary for a full-time worker last year was €17,013, equivalent to levels during the peak of the debt crisis in 2014-2015.

Between 2015 and 2023, Greece recorded the largest decrease in real wages (-8.3%) among EU countries and, along with Italy, was one of the only EU member states where real gross disposable income of households in 2023 was lower than in 2009.

Missed deadline

The dismantling of the country's collective bargaining system has been key to the decline, with the percentage of workers covered falling from 100% to 14% since 2000.

Under the EU minimum wage directive, all member states are required to draw up an action plan to increase collective bargaining coverage to at least 80%, as well as ensuring minimum wages are adequate.

The Greek General Confederation of Labour (GSEE), which has organised today's strike, is calling for the government to re-establish the national general collective agreement that which was abolished at the behest of the Troika.

However, Greece failed to meet Friday's deadline to put the minimum wage directive into national law. It must now fulfil its commitment and reinstate the collective bargaining system to determine the minimum wage in Greece.

Esther Lynch, the General Secretary of the European Trade Union Confederation who has been in Athens to support the GSEE with the strike, said:

"I'm in Greece to bring solidarity from 45 million, and their trade unions, from around Europe. Greece needs a pay rise.

"We fully support our unions, the GSEE, and all workers in Greece who are going to come out to demand that pay rise, and to demand the generally binding collective agreement to guarantee a fair day's pay for a fair day's work.

"More than a decade after the debt crisis, the Greek people are still paying a heavy price for the forced dismantling of their collective bargaining system as part of austerity measures.

"European policymakers have now accepted that it was a mistake to attack collective bargaining but that's no comfort to the millions of Greeks whose low wages don't cover the rising price of food, fuel and rent.

"The Greek government must work with trade unions to fully deliver on the EU minimum wage directive, most importantly the full reinstatement of the national general collective agreement.

"If the Greek government continues to ignore its obligations, it should expect the European Commission to take every measure necessary to enforce it."

Notes

Press release from the Greek General Confederation of Labour on today's general strike
Briefing on the economic situation from the Greek General Confederation of Labour