Mon, May 28, 2012, 12:40 PM EDT - U.S. Markets closed for Memorial Day

Greek unions hit back at minumum wage cuts

Greek unions hit back at minimum wage cuts, join European anti-austerity protests

ATHENS, Greece (AP) -- Greece's largest unions held protests and a work stoppage Wednesday, as the crisis-hit country's coalition government pressed ahead with wage cuts and other painful austerity measures.

The stoppage disrupted services at tax offices and other public agencies, and a protest was held outside the EU representation building in central Athens.

Greece is in its fifth year of recession and unemployment has roughly doubled since the start of the financial crisis, reaching 21 percent after more than two years of punishing savings reforms.

But the country is still running high deficits and is obliged to adopt a new series of cuts before it can receive funds from a new euro130 billion ($174 billion) bailout package from eurozone countries and the International Monetary Fund.

"Workers' rights are being lost constantly," said Nicholas Kioutsoukis, a senior member of Greece's largest union, the GSEE. "We need elections, so that the public can express its will on these issues."

Several hundred people took part in a protest in Syntagma Square outside Parliament, called by the GSEE and other unions as part of Europe-wide anti-austerity protests. The demonstration quickly fizzled out amid heavy rain, which also forced the cancellation of a concert organized by unions in the square.

Parliament late Tuesday approved new cuts in public sector pensions and government spending required to secure the package of international rescue loans, the country's second in two years, while the Cabinet formally imposed deep cuts to the minimum wage.

Doctors at public hospitals and some private practices are also on a 24-hour strike to protest health care spending cuts.

As part of measures approved Tuesday, a 22 percent cut has been imposed on the minimum wage, which currently stands at euro751 ($1,010) per month for private sector workers. For workers under the age of 25 — where unemployment is running at about 50 percent — the minimum wage has been cut by 32 percent.

Greece on Wednesday also formally launched a privatization offer for its Public Gas Corporation, DEPA.

The move is part of an ambitious program to raise euro11 billion ($14.8 billion) by the end of the year as the country seeks to pay down its massive debts.

The government, which holds 65 percent of DEPA, has already held talks on a potential sale with a top official from Russian gas supplier Gazprom Export, who visited Athens this week.

Later, lawmakers are to vote on a new round of cuts that will merge debt-strapped supplementary pension funds — part of a long list of demands made by rescue creditors, who insist the government aggressively sell off or shut down state enterprises.

One of those agencies slated for closure is the Workers' Housing Organization, which assists low-income families with housing placements.

"I have a home loan with subsidies for interest payments from the organization, for which I'm currently paying euro750. If the organization closes and I lose the subsidy, the monthly installment will rise to euro1,200," said Evangelia Diamanti, a worker and beneficiary of a home loan from the agency.

"There is no money when you have a family with teenagers who have extra needs for school. You understand that ... our quality of life drops significantly."

___

Theodora Tongas contributed to this report.

 
  • Forrest Gump  •  Shreveport, Louisiana  •  2 months ago
    Can you get someone that can at least spell the headline correctly. That is terrible...
    • wjmdurham 2 months ago
      They need to turn their spellcheck on.
    • 46thPres 2 months ago
      I cant minumize the problem here.
    • titus 2 months ago
      Lets cut education budgets some more LOL
  • Jenny  •  Perth, Australia  •  2 months ago
    Like it isn't already in dysfuntion and chaos. As for anarchy? its when angry mobs can't attack those that cause the pain so discharge their lightning at some poor shopkeeper in the high street. Like the shoe shop guy. Same in london. What is the point of burning down businesses of people who have no makeing in these crises. The people must have a plan, and at least a strike is a plan.
    • Langston Hughes 2 months ago
      They're acting like spoiled children that can't raid the cookie jar anymore. Throwing fits now. They'll calm down once they realize their little strikes don't accomplish anything.
    • Martin 2 months ago
      Langston, I agree with your first two sentences, but I highly doubt the third.
    • GB 2 months ago
      What cookie jar? It was sold. Now no jar, no cookies but let's strike anyway because 22% unemployment isn't enough! Unions....wow. When is the dawning of reallity going to come home. YOU ARE BROKE!
  • jumpTooFast  •  Denver, Colorado  •  2 months ago
    If the Greeks do not like the terms of the next free-money bailout, they do not have to take it.
    • SC 2 months ago
      I don't think they have a choice. They need money or face a default.
    • GB 2 months ago
      Default. Gonna happen sooner or later.
  • Post.Haste  •  2 months ago
    Demanding money from someone that has none is a meaningless exercise in futility
    • Mark 2 months ago
      Whoever gave this comment a thumbs down failed Econ 101.
    • BTN 2 months ago
      If you owe someone $1000, you have a problem. If you owe them several $billion, they have a problem.
    • Gig 2 months ago
      What's the issue here, they have no money to pay anyone more. So I agree they need to join reality.
  • anonymous  •  2 months ago
    Early retirement age in Greece 55, early retirement age in Germany 65. You would think the protests would be in Germany to stop bailing out this bankrupt country.
  • one small VOICE  •  2 months ago
    I don't want to work, I want to beat on the drum all day.... Greek National Anthem.
  • Greg  •  Chicago, Illinois  •  2 months ago
    Boy, the finance minister doesn't look like he has missed a meal.
    • Sever Error 2 months ago
      Orwellian "Animal Farm"
    • Larry 2 months ago
      I think he always sits out the "and now we dance" part!
  • Pointandclique  •  2 months ago
    Isn't this the proverbial cutting off your nose to spite your face reaction?
  • Sever Error  •  Nashville, Tennessee  •  2 months ago
    Orwellian "Animal Farm"
  • Diver  •  New York, New York  •  2 months ago
    Do these "union" people get paid when don't work but demonstrate? What exactly do they want? The gravey train has ended folks go back to work or don't.
  • the hawk  •  Newark, New Jersey  •  2 months ago
    The greeks brough this upon themselves. They want to rtire at 50,they don't want to pay their taxes.They just want to sit around ,and let others pay thee way. Sounds a lot like welfare. screw them.
  • USINDEBTEDNESS  •  2 months ago
    They're going to need to make even more cutbacks to make up for the loss of productivity due to union strikes. Maybe they should raise the retirement age from 60 to 80.
  • GiggityGoo  •  Dallas, Texas  •  2 months ago
    Isn't it scary how people think they can protest against reality? Greece is in massive debt - other countries are willing to bail them out for basic reforms that were needed anyway - and yet here Greeks are throwing tantrums like a 2 year old that can't get his way. (How many "work stoppages" and "general strikes" have we seen in the past few months alone?) I feel bad for the (few) responsible Greeks that will suffer because of the greed of their countrymen. This is the side of humanity brought about by the entitlement state - like crack addicts in withdrawal these people will destroy their country and the little wealth they have in the futile attempt to get their next free government money fix.
  • Fabian  •  Irvine, California  •  2 months ago
    Minimum wage cut by 32% from EUR 1010 gives you about EUR 3.81/hour. Given prices in Europe, this is really tough.
  • A Yahoo! User  •  2 months ago
    Social Engineering at its finniest, coming to a town near you.
  • dennis  •  Doylestown, Pennsylvania  •  2 months ago
    You are in trouble when the unions control everything
  • Megameat  •  Washington, District of Columbia  •  2 months ago
    European Socialism is inhumane, unsustainable and, subject to the immutable laws of economics, has failed utterly. But the politicians, as they scramble to #$%$ away ever greater sums to paper over their own malfeasance, magnify the ultimate pain by denying the root cause: an overweening, overspending bureaucratic Monster. In the wake of fiscal collapse, the social safety net will unravel to expose the false promises made by statist politicians. And the ultimate insult: an American president who embraces the European Model as a means to destroy the America that Frank Marshall Davis, Bill Ayers and Reverend Wright taught him to hate.
  • GodBlessAmerica  •  2 months ago
    Obama supporters take heed!!!
  • GodBlessAmerica  •  2 months ago
    Liberals in the U.S take heed!!
  • wjmdurham  •  2 months ago
    Austerity works. What the PIIGS nations need is an increase in the useful and productive PRIVATE sector jobs. The ones that actually create products and services tht bring in money. Gov't jobs are only TAKING money from those who EARN and redistributing it to those who co NOT.
 
Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
 
Sign-in to view quotes in your portfolios.

Trading Center

Yahoo! Finance on Facebook

  YAHOO! FINANCE ON TWITTER