Troika: Proceed with wage cuts in the private sector!

A reduction in the minimum wages for private employees in a process that will drag down the wages of the entire private sector, was asked for by the Troika on Monday night during a conversation with Labour Minister G. Koutroumanis.

The Troika raised such an issue with the government for the first time, surprising the minister.

The representatives stated that this will increase the competitiveness of the economy and reduce unemployment. They also requested that this matter be discussed with social partners and if there is no agreement, that the suggestion be put to the vote in Parliament.

On his part, Mr. Koutroumanis replied that such a law would reduce the revenue of the state and the buying power of the individual, while he underlined that he must discuss the subject with Prime Minister Papandreou and Finance Minister Venizelos.

The Troika did not put its suggestion forth as an obligation for the sixth installment, but underlined that this must be done.

There was also a difference in the extension of sectoral agreements. The Troika representatives called for the abolition of the extension of sectoral agreements for the next three years. Mr. Koutroumanis counteroffered with an extension of sectoral agreements which do not include wage increases for the next three years.

They finally agreed to Mr. Koutroumanis’ proposal that sectoral agreements are signed by associations representing 3/5 of the employees in the particular sector.