Freezing salaries for two years to avoid cuts

Against a background of a failing labor market, where employer arbitrariness reigns and wages are reduced through operating contracts even by 40%, the social partners will meet pretty soon to continue the consultations abruptly interrupted by the PAME invasion. The pressure for an agreement was strengthened after the meeting of the labour ministry leadership with the Troika this Saturday, during which the representatives of our lenders raised the issue of minimum wage and the 13th and 14th salaries, noting however, that their final position will be determined after the end of the dialogue between employers' organizations and trade unions.

The Troika considers the reduction of supplementary pensions via legislation as self- evident – a topic which has caused considerable friction within the government and was also the subject of Saturday's meeting between the Troika and the New Democracy leader Antonis Samaras – and as protothema.gr information indicates, during the last week the technical teams visited a number of pension funds, collecting data and information.

Following the insistent demands of the Troika, ESEE chairman Vassilis Korkidis considered that an agreement is necessary and said that "the issue of labour costs started to unfold with the arrival of the Troika and its prerequisites. As social partners we need to answer three challenging questions. The first is what is actually required by troika, the second is what can actually be voted by the government and parliament, and the third and most important one is what we can agree on that society will be able to bear. ESEE’s stance and its proposal for a wage freeze for two or three years and until completion of the mid-term will save, as we believe, the minimum wage and the 13th and 14th salaries, while the reduction of non-wage costs will reduce the pressure of several insurance business obligations.

Regardless of the developments, the social partners should face their responsibilities, and agree on what we believe will solve the big problems in the labour sector and will not create additional ones.

Respectively, the Greek government must commit that it will support whatever is agreed upon by the social partners."

GSEE is determined not to discuss any aspect that falls under the National Collective Labour Agreement, merchants and craftsmen seek a 3-year freeze on wages in sectoral agreements, SETE prepares to propose a freeze to minimum wages for this year too, so as not to provide the increase of 2.6% for the next two years as well, while BSE requests a reduction of earnings (maturities, 13th and 14th salaries) for medium and high wages, a demand in which GSEE is not involved.

A maneuvering agreement

What is being discussed is to agree in principle on a wage freeze for 2013-2015, when the current contract will have expired and the new one will be in negotiation. This informal agreement serves GSEE too, since it will not be forced to retreat, while it will add points on a communicative level in view of the Troika audit.

Regardless of the dialogue’s outcome however, the Troika insists on compressing via regulation the privileges enjoyed since the 70s by state enterprises and banks under privatization. Among the demands is the elimination of tenure, reduction or cessation of wage maturities based on seniority, removal of benefits and reduction of the cost of overtime, wherever this is greater than it the rest of the private sector.

Labor ministry officials said the working regulations may be changed by collective agreements signed between the administrations of enterprises and workers. Officials reiterated that they expect the recording of the privileges they wish to reduce.

The Troika team returned fiercer than before, asking for the removal of any safety net that prevents the reduction of wages. Clearly informed by the law firms in Athens with which they cooperate, in the meeting with secretary general of the labour ministry Anna Stratinaki and SEPE special secretary Michlis Halaris, they sought to repeal the grace period of 6 months from the end of the sectoral contracts if no new contract is signed, and for industry associations to have no right to appeal even to OMED. What does this mean? That upon termination, the employer with business and individual contracts may reduce the salary even down to the lower limit of 751 euros, which is currently the only safety net.

Wage decrease of up to 41% for 7,500 employees

Either way, whether OMED exists or not, the business contracts that outweigh the industry ones have gained ground. The briefing notes that were given to the Troika state that 52 business contracts have now been signed – most after the creation of an association – regarding 7,530 employees and reducing wages from 7.5% to
41.30% in all sectors of the economy but mainly commerce, construction, machining, automobiles, motorbikes and food. The most dramatic reduction by 41.30% has been forced on workers in a metal products company in Kilkis (a family firm employing only 4 people) while large decreases also occur in Larissa, Trikala and Achaia. Also, the troika team was informed of the reductions recorded through 1,727 individual contracts for 11,085 employees, half of which were signed in Athens.

Yet, the percentage of uninsured workers remains high. According to SEPE special secretary Michalis Halaris, of 66,615 workers that were checked, 19,968 were uninsured (19,968 Greeks and 8,147 foreigners). The problem is more acute in the food sector professions (restaurants, tavernas, banquet halls, snack bars, coffee bars,
nightclubs), small industry parks, industrial zones, hairdressers, petrol stations, garages, transport companies, cleaning, construction, hospitality and security services.