Mandatory Collective Labour Agreement in hotels

The Press Office of the Ministry of Labour and Social Affairs issued the following statement:

By decision of the Minister of Labour and Social Affairs Costis Hatzidakis, following the relevant recommendation of the Supreme Labour Council, the Collective Labour Agreement of hotel workers for 2023-2024 is declared mandatory for the entire sector.

This means that the provisions of the Agreement concerning, among other things, pay, benefits, working time arrangements, etc. are extended and apply to all undertakings in the sector and not only to those that have signed the Agreement.

The CBA that is declared compulsory provides for an increase of basic monthly wages by 5.5 % from 1 January 2023 and by 5% from 1 January 2024. The contract agreed between the Panhellenic Federation of Employees in Food - Tourism (POEET) and the Panhellenic Federation of Hoteliers (POEX) also provides that during the summer and winter tourist season:

- In the context of the working time arrangement, the provision that provided for the granting of consecutive weekly rest days to five-day workers is abolished and the employer is given the possibility to distribute the two-day rest period within the week, but intermittently. During the same periods, enterprises may employ employees for up to one additional hour per day without additional pay, provided that the average weekly working time over a period of up to eight weeks does not exceed 40 hours.

- If occupancy exceeds 70 %, employment on rest days is permitted with additional pay equal to one day's pay. If it is a Sunday or public holiday the additional pay is one day's pay plus 75 %.

The contract concerns four categories of employees for whom the basic salaries are from 1.1.2023 from 835.64 to 911.34 euros and from 1.1.2024 from 877.43 to 956.91 euros. To the basic wages are added, where applicable, allowances for length of service, marriage, tourism education, seasonal employment, uniform, unhealthy work, food and sleep (hotel accommodation).The minimum wages also apply to employees of the same qualifications employed by contractors to whom the hotel company assigns work.

The Minister of Labour and Social Affairs, Kostis Hatzidakis, said: "The Supreme Labour Council, with the positive attitude of the government, has given its opinion in favour of extending the application of the Collective Labour Agreement in the hotel sector, sending three messages: First, that the incomes of workers in all hotel businesses are supported, to a degree more significant than the already increased minimum wage, due to the agreement between employers and workers. Second, that the working time arrangement, which was so fought by the opposition and was seen as a supposed abolition of the 8-hour working day when Law 4808/2021 was passed, can work positively and serve the interests of both the employer and the employee, if both sides agree on it. Third, that the government encourages Collective Agreements between employers and employees that are not physically mandated but are the result of good faith and productive negotiation, as was the case with this sectoral agreement."

The collective agreement that is declared compulsory provides for an increase in basic monthly wages by 5.5 % from 1 January 2023 and by 5% from 1 January 2024.