Troika demands and Union / Employers response

Troika: slash salaries and wages by 25%

3 Feb 2012

Health sector personnel shout slogans during a protest against austerity measures outside the health ministry, 2 February 2012 (Reuters) The troika has told the finance and labour ministers that the country’s labour system must be radically overhauled and that salaries and pensions must be cut by a quarter.   The demand was made at a meeting late on Thursday between troika inspectors, headed by the IMF’s Poul Thomson, and Evangelos Venizelos and Yiorgos Koutroumanis.   During the meeting the country's international lenders demanded radical changes to the labour regime that will result in an additional 25 percent cutback in salaries and pensions.   Prime Minister Lucas Papademos and coalition party leaders will be briefed on the outcome of the meeting before a final government decision is made. (AMNA, Athens News)   and..... Unions and employers say they have not yet reached agreement in closely watched wage negotiations, but insisted that common ground already reached was encouraged.   The two sides said they would continue meetings and inform the government, political parties and troika inspectors of the progress made so far in a joint letter.   The social partners are under pressure from the troika and the government to reach a deal, as part of a new round of austerity needed finalise new bailout and debt-relief deals.   "As we have said that the provisions in the existing collective wage agreements are not negotiable," said Yiannis Panagopoulos, leader of the country’s largest union, the General Confederation of Greek Labour (GSEE).   "It is now our common position that the 13th and 14th salaries must not be affected," he said. "We cannot accept any haircut on the minimum wage."   Employers' unions, who are backing union demands to maintain the minimum wage and the 13th and 14th salaries, and are calling for a three-year wage freeze starting this year, but no deal was reached.   The social partners also agreed to address a letter to the government, political parties, the troika and the European Commission calling on the government to respect their decisions. (Athens News/gw, AMNA)