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IMF, Germany to legalize Slavery in Greece with “single minimum wage system”

They never run out of ideas. Did you know, there is a “single minimum wage system” foreseeing that an employee receives the same wage in the entire working life? I didn’t. But the International Monetary Fund did. Or it may have neoliberally invented it. I don’t know and I am very curious to know.

According to this system, employees in the private sector will receive the same “net salary” (without allowances and increases) during the entire working life, i.e. during entrance to labor market and exit for retirement.

According to this logic, the employee will receive a basic salary -maybe in the level of the “minimum wage” all though his working life!

This system that crashes hard-earned labor rights and make a living impossible is part of the long list of creditors’ demands to Greece that have to be fulfilled for the second Program Review in October. What if the IMF has not decided yet if it will participate in the program or not. It has a counseling role, the labor reforms clearly bear the signature and the mentality of the IMF austerity and “competitiveness” concept and some of the ‘reforms’ have been already voted by the New Democracy-PASOK government in 2013! But the upcoming law has also hinds towards Germany and Berlin.

In the sense of creditors and the IMF, Labor Reforms mean wages decreases, abolishing of allowance and collective bargain agreements.

Abolishing the 13th and 14th salary (Christmas, Easter and Vacation bonus)

Further decrease of the minimum wage as of 1.1.2017 – currently minimum wage is €586 gross/month and €510 for those below 25. Until 2011, it was 200 euro more.

Abolishing all increments and bonuses: a fixed minimum wage with no other increase except the regular increase due to working experience (such increases normally occur every 3 years). In the provisions of the MoU 4309/2012, such increases due to working experience have been frozen until unemployment reaches 10% – it is currently at 24.5% average. Now the lenders wants to scarp all increases due to working experience.

“Single Minimum wage system” – as posted above

Minimum wage can be set outside the collective bargains  with individual work contracts – this has been provided already with article 103 of Law 4172/2013! Private sector union GSEE has not agreed to that.

Mass lay-offs without limit and without administrative veto.

Generalized Flexibility and Flexicurity  in the labor market with the establishment and expansion of all the “new” forms of “micro-job” (cheap and unprotected labor), such as:
a.Mini jobs, Midjobs, mini geld [hey! that’s German!], labor franchising,  teleworking.
b. ‘Zero Hour contracts”or “Emergency Contracts”
c. “Low Hour Contracts” – just for a few hours.
d. “On-Call Contracts”
e. “White Contracts

Abolishing of unionists’ rights

A new institutional framework for strikes

source: ENYPEKKUnion for the labor rights and the social state. Chairman is Alexis Mitropoulos labor right lawyer and a former deputy parliament speaker, SYRIZA MP.

So far, only the issue of the 13th and 14th salary has been leaked to the press and Labor Minister Giorgos Katrougalos has been insisting that there would be no abolishment.

The public debate is going to be very interesting.

PS Interesting. This mini jobs, mini geld (1 euro jobs) are soooo German model. The only problem in Greece is that we do not have the German Hartz concept (since 2002), HARTZ-IV incl, that supports long-term unemployed and gives and the welfare benefits. The level for a single person state assistance has been raised to €391 in 2013 plus financial assistance with housing and health care, and extra benefits for couples and children. I suppose, the Hartz concept came info effect as a safety net for the people hit by the strict austerity measures imposed in the 90’s because of the reunification.But I see, hear and read no future provision for a Greek Hartz Concept here.

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  1. So they are bringing austerity to the private sector as well? IMF SAP to the private sector? I don’t know how they will impose that. With high unemployment figures they might get away with it but it will convict whole generations to serfdom. Work your ass off for a few scraps. It will be the future for the rest of the continent and world as well. Greece is the neoliberal testing ground.

  2. Hector Belascoaran

    MiniJobs will open, in the future, many problems into the germany social life. Just now about 2 milions of child and teen lives with the welfare benefits, due to the miniJobs of their relatives.
    Noiw the germany ordoliberist are going to attack the collective union power, i hope the the answer will be very very hard, following france CGT example.
    I’m sorry but you (as greece people) made only a mistake: didn’t bring to the extreme your OXI.

    • An extreme OXI would have been Greece defaulting on its debt. Irresponsible lenders should not be bailed out. That is bad capitalism. A Greek default would have been very painful but what is the difference now? Debt serfdom until 2059 at least. Greece not defaulting saved the Euro and as a reward they get serfdom and a complete fire sale of their country. Remember, this can happen to any country in the EU. It is the template. Don’t think this can happen to Germany? Deutsche Bank is heavily exposed to the derivative markets. If that baby blows then Deutsche goes.

      • Hector Belascoaran

        No it didn’t happen in germany for a simple fact: euro advantage germany (and its satellite) so germany (despite some political trouble) will not leave euro. And yes Greece (my opinion) had a big opportunity to exit from euro (or put on the table this option). Probably now it’s too late.I’m afraid but germany and troika don’t stop until ‘mission accomplished’ even if this could lead to starvation Greek.
        It is the continuation of World War II in other forms.
        By the way I think italy would exit from euro, and now in my country this topic it’s not a tabu …

    • Giaourti Giaourtaki

      The movement in France seems to be very much influenced by the Greek movements, f.i. the Syntagma gatherings but the big occupations are missing: city halls, universities, factories… also one should not forget that repression is a huge factor to bring movements down, in Greece are lots of people in jail for a long time, even youths but only the anarchists keep up to their prisoners, the big “movement” left them alone. The huge riots in Greece in 2008 – 2012 were for many observers abroad like an again and gain “wow, now it’s over, this is more than 68” but the system was absorbing it and gaining strength through disillusion; one mega mistake is that these movements find no connections

  3. It’s called a free market economy, something Greece has never had. All these laws make perfect sense.
    You will rightfully argue that 500 Euros a month is nothing, but the Greek economy is nothing as well. If the Greek economy improves, no one will work for 500 Euros a month as they can find jobs easily, so wages will go up naturally.

    bad economy = low wages. It’s simple, really.

    This will also lower ‘black’ employment as it will give incentives to employers to hire people ‘on the books’.

    Or do you want things to stay like this and 40% of Greek employees to be employed ‘black’ with no labor rights or insurance at all?

    • keeptalkinggreece

      as the lenders allow the creation of a business unfriendly environment only & there are by no means any measures to development & growth in ANY loan agreement, yes, you can say Greece’s economy is not good

    • According to you, black is white and white is black. Regulating the labour market with outrageous conditions like this is the exact opposite of a free market. Everything that Germany has been doing in th eurozone since the crisis (and arguably before it, as well) is actually rigging markets, making sure that market forces do not operate.
      Try posting your propaganda elsewhere, where perhaps people will be stupid enough to believe it.

    • And bad investments by banks should be their loss, not taxpayers’ loss. Banks that make bad investments should not be bailed out (which happened with the Greek bailout of 240 billion). They also do not share their profits with taxpayers after all. TBTF is not an argument. Then they should be made not TBTF.

    • Hector Belascoaran

      I see neoliberism (or ordoliberism) has penetrated in thought of people.
      But you are wondering because the same approach is proposed (by ue, bce, and so on) for every country? All bad economy or maybe there is an ideological and economical plan behind ?

  4. Our German friends have always been obsessed with creating a strictly defined class system in the labor market to regulate it. They were obsessed with that in WWII (who can forget the system regulating the “Fremdarbeiter” and classifying them in various categories from “Gastarbeitnehmer” to “Zwangsarbeiter”) and they are obsessed with it now. But what’s instructive is to see who benefited then from the “Fremdarbeiter” system and who will benefit from the proposed system today – Thyssen, Krupp, IG Farben, Bosch, Daimler-Benz, Demag, Henschel, Philips, Volkswagen, Deutsche Bank and Siemens among others. 80+ years land a lost war later, nothing has changed in good ol’ Deutschland …

    • Not to mention that post WWII Germany received very generous debt forgiveness and plenty of investment. Without that the Wirtschaftwunder never would have happened.

  5. This will not go on forever. Only as long as we permit it to and believe their threats and nonsense like staying in the euro, the wonderful EU and NATO etc. There will eventually come a breaking point, probably from an unexpected direction (since history tends to work that way).

    Moreover, there are only a few of them and a LOT of us. Plus, most of the brains and professions, not to mention brawn, are on the ‘us’ side. The oligarchs, bankers, corrupted politicians are certainly no rocket scientists. Their “rules” only work because we are law-abiding – despite the insanity and obvious malice of their “laws”. This nonsensical “lawfare” in fact breaks a century of European-wide laws AND our (and others) constitutions – why else are they insisting on re-writing the Greek one?

    On our side we have to give up obeying their laws. Take a leaf out of Ghandi’s book….to peacefully sabotage their obscene system. There will be a breaking point…

    • Fascism does not require the intelligentsia to concur: they are merely imprisoned or intimidated into conformity. It requires the masses to simply accept the existence of power, and those wielding it to assert it. This is what is happening across the EU now — outside of the eurozone as well as within. Propaganda and manipulation of data and information is the primary characteristic of the Brexit referendum, and also of the German handling of the eurozone. The truth is known to a few, even if the majority suspect that something is wrong.