“Sectoral deals in tourism can bring hikes of 6%–15% in two years” – Labor law expert G. Gikas to T.N.

The recent agreement between social partners on collective agreements opens a new chapter in the labor market. Labor law expert Giorgos Gikas explains that “the agreement of social partners on collective agreements does not automatically entail wage increases, as if pressing a button,” yet it reflects a noticeable shift in how employment terms will be determined in the coming years.

At the center is a critical change concerning representativeness. Mr. Gikas points out that “the required representativeness for declaring mandatory status decreases from 51% to 40%.” This development means that more sectoral agreements will be able to extend and prevail over individual contracts, which is particularly important in sectors such as tourism, where employment conditions are often fragmented.

Applying collective terms to a wider range of employees can act as a barrier against wage inequalities. At the same time, the reinstatement of the three-month post-expiry effect and improvements in the arbitration process create a more protective framework for those working in tourism businesses, hotels, and seasonal hospitality establishments.

There are also specific estimates for wage prospects. Mr. Gikas states that “sectoral increases could range between 6%–15% over the next two years, so that average wages, currently around €1,370, exceed the target of €1,500 by mid-2027.” If this is confirmed, tourism could enter a path of more stable earnings at a time when demand for staff is rising and retaining experienced employees is a key challenge for the market.

Another critical factor concerns the upgrading of the role of GSEE (General Confederation of Greek Workers). “The ability of GSEE to conclude national-level sectoral agreements constitutes an institutional breakthrough, reinforcing the principle of trade union freedom enshrined in Article 23 of the Constitution,” notes Mr. Gikas. This change gives unions greater intervention capacity not only with large employer organizations but also with smaller companies employing seasonal staff.

The key question now is whether the new regulations will be effectively reflected in the daily lives of employees. The next two years will be a test of how collective negotiations can translate into improved wages, better working conditions, and greater stability in the tourism sector.

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