Greece resisting wage cuts demanded by EU, IMF
(ATHENS) - Greece has turned down proposals by the EU and IMF to cut salary bonuses under austerity measures to shore up its crisis-hit economy, the Greek labour minister said on Wednesday.
"We have been asked for a cut which we do not accept. Neither we as a state, nor our social partners," Labour Minister Andreas Loverdos said after a meeting with the Hellenic Federation of Enterprises, a key business lobby group.
Loverdos explained in a written statement that the disagreement concerned 13th and 14th month wage bonuses for Greek private sector employees.
"The negotiations are continuing," he said.
Greece is in talks with a joint mission of the European Union, European Central Bank and International Monetary Fund which could determine whether it can access a bailout loan to help it meet urgent debt payments.
The government recently imposed cuts on public sector salaries, raising strong opposition from unions which have staged strikes and street protests.
The cuts were imposed on holiday pay received by civil servants for the Christmas, Easter and summer vacations which count as two additional salaries, known in Greece as the 13th and 14th month wage.
Loverdos has insisted that extending the same cut to the private sector would have "disastrous effects" on the ailing pension system which draws upon each employee's monthly salary.
"Eliminating these wages would be a disastrous choice for people, the market and social insurance funds," the minister told Ta Nea daily this week.
"Each of these wages constitutes revenue of two billion euros (2.7 billion dollars) for insurance funds," he said.
The main Greek union, the General Confederation of Workers, has also strongly rejected any talk of such a measure.
Loverdos said he would table his plans for an overhaul of the pension system to the cabinet next week.
"There is an open negotiation (with the EU and IMF)," he said. "A common evaluation has emerged for a pension system that can float and be socially fair."