Prosecutor probes claims public bodies dodged wage cuts

Economic affairs prosecutor Grigoris Peponis on Tuesday ordered a preliminary investigation into claims that some public enterprises and other state-related bodies did not reduce their employees’ wages as they were supposed to do in 2011.

There have been reports that in some cases, rather than reduce wages by up to 35 percent, bosses and unionists colluded in order to raise wages via increased benefits and other methods.

Peponis has asked prosecutor Giorgos Noulis to investigate at which organizations this happened and how much this cost the state.

Earlier this month, the Finance Ministry forced the resignation of Anastasios Barakos, the chairman and chief executive of Larco General Mining & Metallurgical Co SA, the country’s ferronickel producer, after he was accused of not implementing the wage cuts approved by Parliament last year.


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