Greek unions, employers reject demands for wage cuts

PanARMENIAN.Net - Unions and employers' associations in Greece rejected demands for private-sector wage cuts on Friday, February 3 as international lenders were demanding additional austerity measures.

In a letter to the government, the trade unions and employers said they objected to proposals for the minimum wage to be slashed as well as cutting holiday bonuses in the private sector.

They said that, while they agreed not to further reduce workers' salaries, they would consider imposing a freeze on wages over the next three years, M&C reported, citing DPA.

Athens has yet to reach a key agreement on austerity with officials from the European Commission, the International Monetary Fund (IMF) and the European Central Bank, known as the troika.

The troika has sought cuts to private sector wages and auxiliary pensions as well as the recapitalization of banks, as terms for a second international bailout worth 130 billion euros (170 billion dollars).

Without an EU/IMF deal and a bond swap deal that seeks to cut the country's debt to private lenders, Greece will be unable to repay a 14.5-billion-euro bond on March 20, thus defaulting on its massive public debt.