The leftist government’s stepped up efforts to create a semblance of a unified “national front” ahead of what’s expected to be tough negotiations over creditors’ demands for labor sector reforms continued anew this week.
The leftist government’s stepped up efforts to create a semblance of a unified “national front” ahead of what’s expected to be tough negotiations over creditors’ demands for labor sector reforms continued anew this week.
The relevant labor minister, Giorgos Katrougalos, told “N” on Monday that he wants to discuss the issue of Greek labor unions’ financing “after” the conclusion of a second review of the Greek program (third bailout). Negotiations to conclude the second review are due to begin next month between Athens and its institutional creditors.
The goal, according to the minister, is to find “common ground within the framework of the constitution” and what he cited as the 135th international labor convention.
Afterwards, speaking on the state-run television network, Katrougalos emphasized that what Greece needs is more jobs instead of more layoffs, while once again termed the IMF’s positions vis-à-vis his government as “extreme neo-liberal… which don’t have a place in Europe and don’t fit in with its (Europe’s) DNA.”
The IMF, foremost amongst Greece’s creditors, wants to eliminate the relevant Greek labor minister’s right to sign-off on mass layoffs by companies seeking to restructure instead of going bankrupt. The Fund also insists on liberalizing the framework for labor unions.
In several recent and high-profile instances, major Greek companies have simply stopped operations, leaving creditors, suppliers and employees unpaid, without even seeking bankruptcy protection.