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BoG: Greek Bank Employees to Work More for Less Salary

The first employees’ fortress fell on the altar of Memorandum of Understanding II. Once powerful banking sector union had to bow to the dictates of the times. Employees at the Bank of Greece ‘broke’ the collective bargain and agreed to 17% wages and allowances cuts and increase of the working hours. Bank employees and the management of BoG agreed on a new “sectoral bargain agreement”, for the period 1. May 2012-30 April 2015.

According to this agreement, employees will work three more hours per week. That is 12 hours per month without payment.

At the same time, their wages will be gradually reduced at 2.5%-7% per year, depending on the height of the salary.

Furthermore, allowances will undergo cuts between 15% and 60%.

Meanwhile, banking sector unions umbrella OTOE criticized the BoG management, saying that this agreement paves the way for wages reduction in other banks as well.

PS if powerful unions cannot resist, can you imagine how the situation looks in the jungle of the free market private sector? On Wednesday EC president Barroso suggested 15% wages cuts in the private sector. That is additional cuts to the wages cuts also happening.

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