THE GOVERNMENT will introduce staggered public payroll cuts of up to 12.5 per cent from next month ahead of signing a loan agreement with international lenders, it transpired yesterday.
Government spokesman Stefanos Stefanou yesterday confirmed reports that the government would introduce staggered payroll and pension cuts ranging from 6.5 per cent to 12.5 per cent as of December 1. The cuts would also apply to 13th salaries and 13th pensions.
He rejected reports that the government was scrambling to save money until a bailout from the troika of international lenders was secured, arguing that everybody knew the cuts would start before the end of the year.
Right-wing union SEK yesterday “categorically rejected” Stefanou’s claims. The union called on the government spokesman to “restore the truth” but stopped short of calling him a liar.
Local daily Phileleftheros yesterday reported that staggered cuts in salaries of over €1,000 and pensions would start from December 1 in a government effort to save €20m from the 12th and 13th salaries.
According to the paper, the December public payroll exceeds €320m, not including the one-off bonuses that have to be paid out to those opting for early retirement ahead of any memorandum signed with the troika to secure a bailout.
Speaking after yesterday’s cabinet meeting, Stefanou confirmed the “contribution” from public servants would start in December and also apply to the 13th salaries.
He rejected reports that the government decided to implement cuts early in a desperate search for cash until a memorandum could be signed.
Stefanou insisted that during discussions with political parties and social partners on the measures to be taken for the purposes of securing a bailout, it was “clear” that the staggered pay cuts would start in December.
Asked if powerful civil servants union PASYDY was aware of the cuts, he repeated that the parties and social partners, including PASYDY were informed.
SEK wasted no time responding with a released statement rubbishing Stefanou’s claims: “During the official briefing of the unions on the terms of the loan agreement at the finance ministry on Friday, November 23, 2012, before the labour minister and the government spokesman, it was clarified that no measure would be taken until January 1, 2013.”
SEK “categorically denies the government spokesman’s statement and invites him to restore the truth,” said the union.
Meanwhile, the heads of the three big unions, SEK, PEO and PASYDY, met yesterday to discuss their response to the measures agreed between the troika and government regarding public sector workers.
The measures include staggered public payroll cuts of up to 12.5 per cent, a freeze in wage indexation until 2016, followed by a 50 per cent cut after it is restored, and taxing part of the lump sum civil servants receive upon retirement.
SEK’s Nicos Moyseos said the unions would meet again on Friday afternoon to confirm measures to be taken. He ruled out “dynamic strikes”, noting that the unions wished to avoid labour unrest during this difficult economic period.
According to state broadcaster CyBC, the unions are expected to agree to hold a work stoppage and rallies against the proposed memorandum.
A handful of DEOK union members held a protest outside the finance ministry yesterday afternoon. DEOK head Diomedes Diomedous said certain provisions of the proposed bailout agreement were “unacceptable”.
Unions bosses meeting on Wednesday (Christos Theodorides)