Minimum wage in Greece and Southern Europe: Towards a new model for shaping labour relations

Abstract

The article focuses on the institution of the general minimum wage in Greece and Southern Europe during the economic recession and up to the present day. The economic crisis and the way it was dealt with by European and international institutions led not only to constraints in social expenditure but also restrictive income policies, among other things. Especially in countries that found themselves involved in ‘fiscal adjustment programmes’, like Greece, Spain, and Portugal, the whole of the labour market and labour relations became the arena for radical reforms. The declared targets were increasing flexibility in the labour market, decreasing labour force costs, gradually decentralizing collective agreements, changing the way wages are determined, and strengthening of flexible forms of work. Our study examines the changes in the established method of determining minimum wage in the countries of Southern Europe that were part of fiscal adjustment programmes.