Maria* has been working at a lady’s fashion shop in Glyfada, a noble suburb of Athens, in the south. The 50-year old woman is desperate. Last time she got paid her full salary of 900 euro was in July 2011. From August onwards, Maria has been receiving 200 euro per month. Advanced downpayment, they call it. In March she saw her ‘salary’ was even more decreases. She got 150 euro to spend the month. She works full time job, 40 hours per week. How can she cope with this money? She doesn’t. She gets loans from relatives and friends…
Maria, a friend of mine, is just one of the estimated 400,000 employees in Greece who do not receive their salaries on time. The result of a domino effect: recession, consumers buying only to cover basic needs and banks that give no loan have caused an unprecedented lack of cash flow in the market. Only one out of ten enterprises pays its employees on time.
According to Michalis Chalaris, from Labour Inpsection Authority, the biggest salary delays are recorded in eating out services (25.5%), in retail (24.7%) and hotels (8.85%).
Since the beginning of the year, 15,000 employees have been forced to work part time and consequently saw their salaries cut into half. Others still working full time suffered 20% salary cuts. Others got just laid off and went home with a 450 euro jobless allowance for one year.
For some employees the last time they saw a salary, it was the Christmas season.
There has been an increase in part-time jobs without insurance and social security, while in the majority of enterprises collective labour bargains have been cancelled. Private contracts seem to be very … trendy with significant salary decreases.
While the full-time work contracts were 79% in 2009, they went down to 66.9% in 2010 and fell further to 60.4% iin 2011. On the contrary part-time contracts rose from 16.7% in 2009, to 30.65% in 2011.
Rotating jobs experienced an increase from 4.3% up to 8.95%.
PS How can consumers spend money when their income is zero? No wonder the market has dried out…
* Maria – real name of employee has been changed for obvious reasons…
Nice Ruters report on Greek woman without job A hopeless situation