Greece Introduces A Six-day Workweek

Greece took a notable step in a global trend towards exploring shorter workweeks by implementing a significant labour reform on July 1. The new legislation introduces a six-day workweek for specific employee categories in private businesses that provide 24/7 services.

This reform aims to boost productivity and cater to the unique needs of the country's aging population. Between 2010 and 2020, Greece's median age increased from 41 to 44, mirroring a global trend toward an older population. In comparison, Australia also experienced a similar shift, with its median age increasing from 33.0 in 1993 to 38.3 in 2023.

Greece's aging population has resulted in a higher old-age dependency ratio, which measures the proportion of people aged 65+ to those aged 15-64. From 2002 to 2020, this ratio experienced a significant increase, rising from 26% to 35%.

HOW WILL THE SIX-DAY WEEK PLAY OUT?

In specific industries, businesses may request their employees to work an additional two hours each day or an extra eight-hour shift for six days a week.

Employees will receive a 40% penalty for the additional shift, or 115% if they work on Sunday. However, they cannot work more than eight hours during the extra shift.

The Ministry of Labour and Social Security in Greece clarified that this measure is optional, not mandatory. It aims to address urgent operational demands without affecting the established five-day working week mandated by law.

The six-day workweek will not apply to the food service and tourism sectors, which already have provisions for extended hours. Instead, it applies to businesses that operate 24 hours a day, more than five days a week, and use rotating shifts. Parts of the industrial and manufacturing sectors are included but exclude tourism and hospitality.

REFORMED LABOR POLICIES IN GREECE

Prime Minister Kyriakos Mitsotakis has implemented a range of labour reforms, including introducing a six-day workweek. This policy addresses the challenges of a skilled worker shortage and a declining population.

Greece has one of the highest emigration rates in the European Union (EU). Since the global recession of 2007-09, which caused a sovereign debt crisis and unemployment levels above 25%, over 500,000 citizens have left the country.

The government asserts that the new labour reforms will help combat undeclared work and unpaid overtime.

Despite working the longest hours in Europe, Greek workers are among the lowest paid. In response, the government increased the minimum monthly wage to 830 euros ($1,335) in 2023 and aims to raise it to 950 euros ($1,528) by the end of its term in 2027.

Additionally, the government pledged to increase the average wage by more than 25% to 1,500 euros ($2,413) during the same period.

WORKER BACKLASH AGAINST LABOUR REFORMS

Labour unions vehemently oppose the recent labour reforms, arguing that they undermine fundamental worker rights. In September, before the reform package was introduced in parliament, thousands of protesters took to the streets of Athens.

The bill extended the maximum daily working time to 13 hours and permitted employers to dismiss employees without prior notice or compensation for up to a year.

Additionally, it imposed fines and a potential six-month jail term on individuals who interfered with employees' ability to work during a strike.

The Communist Party of Greece (KKE) condemned the bill as "monstrous," while the left-wing Syriza party accused the government of harbouring a "secret agenda" targeting workers.

GREECE BREAKS THE CONVENTIONAL TREND

In contrast to Europe's prevalent trend of reducing the working week to four days, Greece stands apart. While several European countries have experimented with shorter workweeks, Greece has not.

Belgium became the first European country in 2022 to legalise a four-day workweek, condensing the same working hours into fewer days. Similarly, Iceland successfully implemented a trial in 2021, where employees worked fewer hours for the same pay, leading to over 85% of the workforce negotiating for shorter hours.

Other trials have occurred in the United Kingdom, Sweden, and are ongoing in Germany, Spain, and Portugal.

Beyond Europe, the concept is also gaining traction, with trials in Japan and New Zealand and even by Bunnings in Australia.