By S. Papapetroy
http://[email protected]
The IMF’s negotiators in Athens this week reportedly nixed practically all of the Greek side’s counter-proposals for labor sector reforms.
According to a top labor ministry official “the IMF isn’t interested and isn’t considering European best practices (in the labor market), and isn’t interested in a recent European Court decision describing the pre-approval role of the (Greek) labor ministry, regarding mass layoffs, as compatible with European law.”
Reliable information from the IMF side noted that the Fund continues to insist on the abolition of the relevant ministry’s approval mechanism for mass layoffs, along with an increase in the percentage of layoffs a company can announce every month – from the current 5 percent of the workforce (in a company with more 150 people on the payroll) to between 8 or 10 percent.
Moreover, as repeatedly reported over the recent period, the IMF remains adamantly against the reimposition of mandatory sector-wide collective bargaining.
In another “painful” demand, as far as the current leftist-rightist government in Athens is concerned, is the IMF’s insistence on legal changes to allow a business to conduct a “lockout” -- something that is prohibited in the current legal framework.
According to reports out of Athens on Thursday focusing on the ongoing negotiations between the Greek government side and representatives of institutional creditors, the IMF’s negotiators are “taking the lead” in deliberations, with European creditors’ representatives sporadically referring only to more secondary issues.
As far as the all-important social security front is concerned, latest reports have creditors proposing cuts worth 1.4 billion euros a year from the overall state budget for the sector.
However, European creditors appear more flexible on this issue, proposing that new austerity measures kick in after 2019 or 2020, and with “countervailing” measures offered to the embattled Tsipras government. Conversely, the IMF wants new cuts taken in 2018 so that very ambitious fiscal measures that European creditors demand can be met.
Thursday’s talks on labor sector liberalization and social security spending only lasted for two and half hours, a distinct departure from the marathon sessions of previous days.
Lastly, a top government spokesman said negotiations will continue via teleconferencing in an attempt to achieve a staff-level agreement by the March 20 Eurogroup meeting.
