The majority of Greek enterprises (59 pct) are cautious over the implementation of a business labour contracts, worried that such a move could lead to labour unrest or undermine the company’s status in the market, a report by People for Business showed.

However, the report showed that one in three enterprises said they would implement such contracts this year, while a 13 pct did not answer. A 45.4 pct of enterprises in the report said the introduction of business labour contracts was a move towards the right direction, while a 40.9 pct said it was a necessary choice to maintain competitiveness. A 77.2 pct of respondent enterprises said a necessary precondition to implementing a business labour contract was ensuring job positions and only 22.8 pct said these two should not be linked. A 22.7 pct said these contracts should be implemented in order to avoid lay-off of workers and another 8.7 pct in order to avoid the transformation of full-time jobs into part-time jobs.

A 27.7 pct of enterprises said wages should be cut when a company was in danger of bankruptcy, while a 28 pct of enterprises said they planned to cut wages this year.

A 62.3 pct of human resources executives said they were positive towards the measure, although they acknowledged that it could lead to labour unrest.

The survey was conducted in the period January 10 to February 10, 2011 in a sample of 145 enterprises, of which 72 pct were Greek and 28 multinational.