Troika to Annul Collective Bargain of Greek Private Sector

The team of international technocrats known as the Troika but in fact are popular among Greeks as “The Evil, The Bad and the Ugly” are reportedly putting pressure for annulment of the collective bargain in the private sector. They demand to lower the lowest wages [and make Greece ‘competitive’ for the big investors who will buy the state assets].

Greek media report that the Troika-guys asked the Labour Minister to mediate with the private sector unions and agree on lower wages. “If this will not succeed, then the government should bring a law that will enforce this”.

Currently the lowest salary in the private sector is €750 gross per month, and just €540 net. That’s on the papers, of course. In reality, I know people who work even for 400 euro per month without social insurance. Whether with university studies or not, whether with zero or 20 years of work experience, people would do anything just to have something to eat and pay bills. Not to mention the extra solidarity contributions and extra taxes…

The Labour Minister apparently told the Troika that should the wages get even lower this will have the effect of decreases in social security and pension contributions and a sharp decline in the consumption. It is not known, whether the Minister also told them that in such case all the planning for the budget 2011-2012 and the targeted state revenues will be bombed apart… 

I have a slight reservation on these demands, and I would put a tiny question-mark because I wouldn’t exclude the possibility this news is ‘tabled’ to Greeks to create the impression the Greek government resists to Greece’s lenders demands. But if the news is true all I can say to the Troika guys is “Take your Memorandum and Get out of Here! Shoo!”