Layoffs in SOEs because transfers are not enough

For the public sector workers the worse is up ahead, since troika is neither satisfied with the progress of layoffs nor the government’s commitments for withdrawal of 150.000 employees until ‘15.

Just two weeks after the mess from the layoff statements by Ragousis and Papakonstantinou and the announcement by Pagalos for the first 7.000 layoffs in the public sector, the troika auditors demanded that the Finance ministry commits to more layoffs in the SOEs with abundant personnel.

Yesterday's meeting saw the progress review of the staff reductions in the SOEs under recovery, such as OSE and transport companies.

And it was there they noticed that staff reduction is unsatisfactory when compared to the wage costs undertaken by the public sector. And this despite the government’s claim that staff positions have decreased by 80.000 since 2009 and will further drop by 10% (there was a proposal for a new rule of 1 hire in every 10 layoffs).

The PM’s announcements for a voluntary retirement program in the public sector, transfers and ASEP evaluation so that employees get absorbed elsewhere, met the disbelief of the auditors. They stressed that the transfer measure is slow and ineffective and that more drastic measures are needed for the immediate reduction of personnel.
 

New measures in 2012 as well

Despite differences though, they agreed on the ’14-’15 measures, which will only be described in a general sense (as a fiscal target for fund savings) without being clearly explained, while the idea is to particularize them from 2012 onwards.

The government’s mid-term program will only analyze the measures for ’11-’13, while it will only give general directions for its two last years.

The approaching new measures will already be implemented by this year targeting at revenue of 6,4bil euros.

During summer, the Finance ministry will have to legislate a vast taxation plan, which will include the reduction of the tax-free limit for employees and freelancers, 20% increase in traffic tax, imposition of minimum consumption tax to non-alcoholic drinks, adjustment of VAT rates and the reduction of tax exemptions based on income criteria.

As protothema.gr reported yesterday, the issue of taxes and multi-speed scales for individuals has resurfaced.

In the coming weeks the government will reach its final decisions for the new payroll of public and SOE employees, placing restrictions both on fees and the personnel of each company.

As troika staff stated, it is crucial that the government completes and implements the measures by fall, which will be the negotiation time of the new memorandum for the additional loan required by our country.