Gov’t on individual business contracts; labour relations

A relevant “draft law will be finalised after consultation with social partners is completed, because an agreement, shared by all interested sides on the form of labour relations that should exist in the economic crisis we are experiencing, is very important”, government spokesman Giorgos Petalotis said on Monday.

The social partners’ consensus and understanding is regarded as a necessary element, the urgency of which should also be considered by the partners themselves, he said, adding that “walking out of discussions leads nowhere”.

Petalotis stated that there is no deadline underlining, however, that an understanding should be reached soon and that the government wants to have the draft law finalised and submitted as soon as possible.

He clarified that Labour Minister Louka Katseli is in Brussels for the Employment Ministers’ Council and that her visit has nothing to do with the draft law to be submitted.

Petalotis also stated that “a different form of work contracts effective for a limited period of time and under very strict preconditions could be adopted in order to save businesses and job positions”, underlining that “wages will not be smaller than provided by the national collective work framework”.

On the impact the wage cuts imposed by individual business work contracts will have on the social insurance funds, Petalotis underlined that all aspects will be taken under consideration and that the government will not jeopardise any of the structural reforms decided.

He also categorically denied that the government considers the abolition of the permanent status of the civil servants.

Called to comment on a statement made by Yannis Papathanassiou, the former finance minister who served in the preceding New Democracy (ND) government, Petalotis said that it is “audacious for Karamanlis’ government ministers to dare question the size of the deficit when, in fact, the policy they followed have led the country to the verge of bankruptcy”.

ND opposes private sector salary cuts

Main opposition New Democracy (ND) on Monday voiced opposition to any salary cuts in the private sector.

ND press spokesman Panos Panagiotopoulos said that any structural changes should contain wasteful spending by the state, and not deduct income from the citizens who are already paying a heavy price due to excessive taxation, high prices and cutbacks.