The Memorandum II is unconstitutional only in terms of the section abolishing the option of unions to resort to arbitration unilaterally following the failure of reaching a collective labour agreement, the Council of State’s plenum said in decision released on Tuesday.

Otherwise, the plenum said that the rest of the Memorandum II provisions, including other measures for employees in the private sector, are not contrary to the constitution, international labour agreements and the European Human Rights Accord. These measures include the reduction of wages by 22 percent (by 32 percent for young people below the age of 25), the abolition of the marriage bonus and the abolition of the signing of national general collective labour greements (setting out minimum wages) following negotiations between employers and working people (as for example, between the Hellenic Federation of Enterprises and GSEE, the umbrella union for private sector employees).

The State Councillors rejected as groundless for “reasons of higher social interest” all the claims by GSEE and several other unions which had resorted to the Council of State, except those related to arbitration.

GSEE, the bank employees union (OTOE), the Panhellenic Federation of Journalists’ Unions (POESY) and other unions had resorted to the Council of State in January 2012. The issue was discussed before the Council’s plenum in December 2012, before a total of 31 judges. Following that, the case remained in the hands of the rapporteur for 19 months, with the controversial decision published on Tuesday.

In a decision on Memorandum I in 2012, the Council’s plenum had included 55 judges.