''After days of intense negotiations during which its membership in the
eurozone seemed to hang by a thread, Greece finally reached an
agreement today on the measures that will accompany the new loan package
from its European partners and the International Monetary Fund.
The measures agreed on are draconian. They include a 22 percent cut
in the monthly minimum wage, reducing earnings from 751 euros to 586
euros per month. For people under 25, it will be even lower, down to 511
euros, and any increase before 2016 is ruled out. In addition, further
reductions to the minimum wage may take place in July. Meanwhile, all
automatic wage increases that are included in collective-bargaining
agreements will be frozen until unemployment falls below 10 percent (it
is currently at 20.9 percent). Employers are also considerably
strengthened in their bargaining position vis-à-vis the unions through
changes in arbitration regulations and a contraction of the time period
(from six to three months) during which an expired wage agreement
continues to be valid. The responsibility of employers to maintain..''
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