New cuts to minimum wages, collective labour contracts

17 June 2016
94 Views

The Supplementary Memorandum of Understanding sent to the Greek government lays out a series of actions it needs to implement. The document provides that the Greek government will have to introduce changes in the pension system, the social security and the labour force market by Autumn, while particular attention is given to the need for aligning labour force laws with best European practices, including the issue of large scale lay-offs. The report points out that 3 per cent of GDP will be saved until 2025 due to the measures implemented from 2015 till now. The institutions insist on the demands they put forward during the negotiations with the Greek government, which include among other things the abolition of the favourable status for small businesses in areas with a population below 2,000, the abolition of the exemption for farmers to pay less health contributions and the decrease of concessions for scientists the first five years in the workforce. Top priority is given to the complete implementation of the Minimum Guaranteed Income till October, while the document also requires the change of family benefits and disability pensions until September with increasing public expenditure. On the matter of labour, the aim of the new program is to maintain the progress achieved so far, including combating unemployment and more labour market flexibility. The institutions ruled out the prospect of the government changing the current framework of the collective labour bargaining. The current main pensions will freeze until they equal the new pensions that are calculated based on the new unified regulations. Finally, Social Solidarity Pension (EKAS) will gradually be scrapped by December 2019 starting at the top tier of the beneficiaries.

You may be interested

Turkish deputy-Prime Minister accuses Greece of oppressing religious minorities in latest Turkish tirade against Greece
GREECE
shares45 views
GREECE
shares45 views

Turkish deputy-Prime Minister accuses Greece of oppressing religious minorities in latest Turkish tirade against Greece

makis - Nov 17, 2017

Turkish Deputy Prime Minister Bekir Bozdag accused Greece of imprisoning Muslim Imams, despite the country being a member of the…

Greek PM says country would rely on itself to face flood disaster
POLITICS
shares57 views
POLITICS
shares57 views

Greek PM says country would rely on itself to face flood disaster

makis - Nov 17, 2017

Greek PM Alexis Tsipras thanked European countries for offering to help after the flash floods in western Attica, Wednesday, which…

US meteorologist explains deadly storm that flooded Greek towns
GREECE
shares77 views
GREECE
shares77 views

US meteorologist explains deadly storm that flooded Greek towns

makis - Nov 17, 2017

“When the Atlantic hurricane season begins to quiet down in late October and November, it’s time to cast an eye…

Leave a Comment

Your email address will not be published.