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The Greek banking sector is undergoing a huge restructuring process imposed by the recapitalization needs of the Greek Banks.

The recapitalization of Greek banks is not decided and not implemented by the Greek Government. This process is being done in a violent and dangerous manner at the expense of national economy and society and mainly in administrative and not logistic terms.



OTOE with various interventions had proposed a full banking reform and functioning of the banking system aiming not only to the improvement of indicators and profit but to the benefit of national economy and society.



All these new restructuring regulations, do not anticipate, do not provide a plan and especially do not explain how the banking system will be, which will be the intervention and the role of the state in this, which method and which priorities it will use in order to support the economic recovery , growth and development of the country and the support social needs.



The process of recapitalization is completed for the commercial banks. As a result, at this moment in Greece there are only 5 commercial banks left, instead of 15 banks in 2011. By the end of November 2013 the process of re-consolidation will be also completed for the 14 cooperative banks already operating.



In this framework of restructurings, according to the new legislation, in cases of resolution of failing banks (selected as failing by the Governor of the Bank of Greece), the failing Bank is divided into "good" and "bad". The good part is absorbed by one of the "core banks" (or systemic banks) which are being recapitalized by the Financial Stability Fund. The majority of employees are transferred in the "Core" Bank, but according to the recent legislation on financial restructurings, the new employer is not obliged to accept the previous industrial relations status & company level collective agreements of the employees.

So far OTOE has intervened - with satisfying results, trying to avert negative developments for the employees or moderate the passage from one situation to the other in terms of labour relations.



In May 2013, OTOE signed a Sectoral Collective Agreement after 4 years of negotiations. OTOE and the Greek Banks' representatives , in view of the situation and the upcoming restructuring process, agreed on salary reductions of -6% ( -9% on annual basis due to certain annual allowances) and a commitment on behalf of the employers to protect jobs in the banking sector until the end of 2015.

The challenge for OTOE has been the following: according to the new labor legislation voted following the Troika demands, a sector collective agreements stops existing if it is not renewed within 3 months after its expiration. In that case, the employer is free to impose individual agreements on the basis of the minimum wage agreed at national level.



Source: OTOE, Greece