Master Mind Bob Traa, a Dutch, is the permanent representative of the International Monetary Fund in Athens. He put down in a memo the 9 steps-measures that he has in mind apparently in order to increase competitiveness and provide economic growth in debt- and recession-ridden Greece. For these reason workers should be ‘cheaper’ and ‘disposable” Traa wrote in his memo. Furthermore the guy who lives a luxury life * on the shoulders of the IMF member states taxpayers, blackmails the Greeks that if these measures would not be adopted …yesterday, there would be no second bailout, a rescue package of €130 billion. “Rescue package” is an euphemism, as it is in fact a loan with fat interest rates that Greek taxpayers have to pay back.
Newspaper TA NEA got hold of Traa’s memo and published the IMF’s Nine Commandments that target to financially destroy employees in the private sector, starting with the bakery worker and ending at the personnel of the state-run enterprises. In summary, Bob Traa wants to demolish the Labor Law, to remove all labor rights, to abolish the 13th and 14th salary, in short horizontal cuts that will affect all employees, especially those in current and former public utilities (telecommunications, energy, water), banks, transport, private education and tourism!
In Detail, Bob Traa’s Evil Mind has worked out these measures against the Greek employees:
1) The 13th and 14th salary should be abolished by law or ministerial or presidential degree (i.e. bypassing the Parliament). These two salaries could be replaced by a bonus after individual negotiations between employer and employee.
2) Collective Agreements: Abolish the regulation of Law 1876/1990, according to which six months after the expiry of a collective agreement and if a new one is not signed, all conditions are transferred to individual contracts. According to Traa, this system discourages signing of new contracts in times of crisis, since employees can continue to enjoy the advantages of previous periods.
3) Arbitration. Changing the process of arbitration and mediation, taking into account economic analysis, in addition to legal, in order to improve effectiveness. Also, to strengthen collective bargaining, the arbitration procedure shall be initiated only if agreed by both parties, employers and employees.
4) Flexibility.To give by law the possibility to reduce the daily hours in addition to the measure that exists and allows the reduction of working days. Sectors with seasonal workers (Tourism…) should be exempted from the rule and allow overtime, fixed working hours and weekend work without extra payment. In private schools increase of teaching hours should be allowed. [I hope it’s not in the private interest of Traa than teachers in publvate schools give extra tutorials without payment…]
5) Recruitment – Dismissals. The recent decisions giving Green Light to lay-offs should be extended by law to all businesses in the private sector.
6) Judicial system. To simplify and expedite the trial of labor disputes, as was the special tax courts.
7) Abolishion of privileges in the state-run enterprises (DEKO): – Permanent Employee Status: Allow lay-offs especially in those state-run enterprises that are to be privatized
8) Grow. Adopt legislation that would freeze the grow in all private sector enterprises. Of course, companies that wish will be able to reintroduce it.
9) Insurance contributions: Reduction of employers’ contributions to pension funds at the level of IKA.
*Bob Traa and the other IMF guys were ordered by ex IMF chief Strauss-Kahn to move out from his luxurious apartments for €9,100 per month rent and find more modest accomodation after Greek media described it as ‘extraordinary provocative’
A year ago, on Febr 11, 2010 KTG reported on Bob Traa’s Concept of Greek Austerity in an article we called “Bob Traa: Sell House Silver, Work pro Bono, Wash your Feet“
Earlier today, Bob Traa, the permanent representative of IMF in Athens, speaking at a conference organized by the Central Bank of Greece, urged Athens to privatize state enterprises and properties in order to buy back part of its debt.At the same time, he spoke of the need for reliable statistical representation about of the size of the Greek economy, emphasizing that the authorities did not know the exact numbers, which undermines confidence.Mr. Traa advocated the liberalization of the labor markets and services, the improvement of the tax collection mechanism, changes in tax laws to make them fairer, and more effective expenditure control.
He also criticized the traditional practice of clientelistic state, recommending “less fakelaki” (black money given in an envelope under the hand, prefarbly to doctors; state officials receive bribes per bank account transfer).
Moreover he argued that the rule of “5 departures for 1 recruitment” in the public administration and the freezing of wages are not sustainable long term solutions to reduce government spending, as they create “distortions” (Don’t ask me to explain, I don’t know what he ment).Mr. Traa said that the government should complete the reform in the health and the insurance system and he advocated privatization, stressing that “the state should not administer business, let alone banks.”
Nevertheless, he expressed cautious optimism about the prospects of the Greek economy.
In short Bob Traa revealed the IMF’s visions about the future and the features of Modern Greek Slavery: lay offs, less social services, higher retirement age, equality (500 euro/month for all) sell off of state properties and impoverished doctors and most probably politicians….
PS Who is Bob Traa? What does he want from my life?
I don’t think Bob Traa wants anything. First of all he is working for the IMF and is pushing the agenda of his employer. And to suggest he is doing this out of some kind of ‘evil mind’ is childish.
Second: of all the points stated there only the first one is a strange one. Just a couple of days ago I read in Kathimerini that they did not ask for abolishment of the 13th and 14th month. But putting that aside: these should be changed to be incorporated into the taxable salary and not any longer as a ‘gift’. In a lot of countries you get things like holiday money or a 13th month. But always these are part of your total pay package and subject to full taxation.
This would be a relative minor correction and not the end of the world.
Again all these points don’t amount to very much other than a way to get rid of a couple of items that are not used to the benefit of the employees, but only to preserve all kind of status quo.
Nick Malkoutzis wrote a great piece a couple of days ago called “Caution: falling wages” http://www.ekathimerini.com/4dcgi/_w_articles_wsite3_1_19/01/2012_423152 in this he describes a couple of very valid points and non of the danger points he is mentioning is in this list.
Last point: If the Greek politicians, Unions and Employers Organisations were not so busy with their own petty interests and would have used these two last years to hammer out a solid way forward no IMF-policy would make any chance at this time. But instead, these idiots are voting down reforms in parliament that are way more essential than these points by Bob Traa. The true evil is in the heart of Greece’s democracy on and around Syntagma and not in Washington, Brussels, Berlin or Holland…
allow me to be childish from time to time. it keeps me young. the 13/14 salary won’t be incorporated in any salary package, we all know that. They served the purpose to give a little breath when there were no salary increases according to inflation. On the other hand you can’t compare other countries salaries/benefits etc in a country like here with such low wages, high pension/insurance contributions, high taxation, high consumers prices and the absence of welfare state.
We all know what’s the problem with IMF policies and what’s the problem with Greek politicians and unions.
My excuses about the ‘childish’ I did not mean it that way. Should have formulated that totally different.
yes, you could have written ‘unchildish’.
Reducing insurance contributions would be the smartest thing the Greek government can do, in addition to liberalizing closed professions (if that ever happens of course)
Why we so upset at Troika?? They loan us the money, we have to agree to their terms. If we don’t like their terms, we don’t have to take their money.
I remember the olde DSK who said once in Athens, “We don’t come to countries uninvited”…..
that’s true. but this happened after ratings agencies and hedge funds attacked Greece and skyrocketed interest rates. the same happened in Portugal, Spain and Italy. remember?
Ha, 500 a month only pays rent, if that! Here in Greece, people are not paid well enough in the first place and living costs are more expensive here as it is, before the crisis. I am an American living in Athens the past decade and already saw the high cost of living, but I always kept it in mind that it was as if we were paying for a better life, such as buying organic food. I love Greece, the people are amazing, passionate and strong. The land and seas are spectacular and the quality of life and the food is great for the soul. Now with the crisis, things are changing, but I really hope we will all come out of this strong with passion.
Thank you also for this blog. I speak greek so-so, but to follow the news is hard. I really enjoy reading your articles and with a little humor adding a little twist! My favorite…. the ashtrays are for sugar, we don’t smoke here!… not exact wording!
Thanks again for the articles!
thank you JB 🙂
500 a month is cheap for rent in NYC. Not uncommon to pay 3000 USD for a small place in NYC… But, what does a McDonalds’ worker in the USA do when he makes the minimum wage of 7.00 USD (a bit more) and has to find an apt in NYC??? So, it’s all relevant.