Single payroll, mass redundancies and privatizations

Dramatic decisions were announced by vice president and Finance Minister Evangelos Venizelos, following the decision made during one of the most crucial cabinet meetings in the country’s history.

Layoffs and partial employment in the public sector, express privatizations, single payrolls and bonuses only for good public employees, elimination of individual divergence, business contracts with lower wages in the private sector and an acceleration of deregulation, are some of the reforms (re-)emerging to the forefront after two years of substantial inertia.

Under Troika pressure for the immediate implementation of what has been agreed upon for the release of the sixth installment, the following were announced, among others:

- Privatizations: The objective within 2011 is to collect 5 billion through the extension of OPAP’s license and new gambling licenses, the renewal of the Athens International Airport agreement, the frequencies for mobile telephony, the sale of Greek Oil and DEPA and the sale and lease-back of State property.

- Restructuring of the public sector: They directly move ahead with abolitions, combinations and shrinkages of operators.

- Immediate activation and expansion of the institution of labor redundancy, including employees of the state. Extra employees will be set up as reserves, while there are possibilities of re-training and re-specialization. As for the narrow public sector, he stated that the government will make note of employees without any ministry criteria, thus leaving the possibility of a wide reshuffle open.

- Immediate changes in the labor market while the government is proceeding with the single taxes and levies system within the context of a national taxation framework.

-  All loopholes concerning the deregulation of professions will be closed.

- The national taxation system will redress injustices, inequalities and conflicts that exist within the boundaries of common sense.

- Payroll: The single pay scale will truly be uniform and transparent. A contract of productivity bonuses will be set.

- In the private sector, business contracts with wages below industry contracts will be promoted.

“If we don’t move ahead, we will never stay afloat”, stated Mr. Venizelos.