More Salary Cuts Coming for Greece’s Private Sector Too

Andy Dabilis

EUROKINISSI
Members of the troika head for a meeting with PASOK leader Evangelos Venizelos, a junior partner in the government. After two years of deep pay cuts for Greece’s public workers, along with tax hikes, slashed pensions, a reduction in the minimum wage and phasing out of collective bargaining rights, private sector groups representing businesses are proposing salary cuts as well.

ATHENS – After two years of deep pay cuts for Greece’s public workers, along with tax hikes, slashed pensions, a reduction in the minimum wage and phasing out of collective bargaining rights, private sector groups representing businesses are proposing salary cuts as well. The National Confederation of Greek Commerce (ESEE) wants workers’ pay to fall by 11 percent, far less than the up to 30 percent cuts for some public workers. ESEE said the cuts are necessary because of the lingering economic crisis that has been worsened by austerity measures imposed by the government as a condition of getting continued bailouts from international lenders. Critics fear it could open the door to the end of worker rights.

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July 08, 2012

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1. Philip Vorgias wrote on July 08, 2012 9:08 AM	Private sector wages should be determined by the marketplace, not by fiat actions of the government. This goes to show the disgusting relationship between Greek unions and the government.

2. Niko Seretis wrote on July 08, 2012 9:33 AM	How can the government control any wages at all in the private sector? This makes no sense.

3. Philip Vorgias wrote on July 08, 2012 12:09 PM	They do it by passing legislation at support of the major unions, Niko. Many union members in Greece are quasi-government workers, because the government helps set standard wages for them. It's one of the major areas of reform needed in Greece, breaking up the relationship between the government and private sector labor rules. Obviously many in the Greek government are dragging their feet on this, for their own selfish political reasons-just as the Democrat Party in the USA fought reforms in US labor laws for many decades (and still do).
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Monday, May 20, 2013 Last Update: 7:56 PM ET