GSEE in impasse over reforms
GSEE, the umbrella trade union body, said yesterday it will reconvene on April 24 to decide a response to the government’s social security funding proposals unveiled on Wednesday and to employers’ wage offer for the next two years. Despite a marathon session, trade unionists failed to reach agreement on whether to support the government’s social security funding proposals or to put more pressure on the state with a general strike. Employers’ two-year wage offer also failed to get the required majority vote. The trade union said it will submit the government’s proposals to its own team of experts and will meet on April 24 to decide its final stand on the issue. While GSEE head Christos Polyzogopoulos has hailed the government’s social security funding proposals as a positive step, factions within the organization which are aligned to the opposition parties yesterday urged all trade unions to participate in a 24-hour general strike on April 18. The government on Wednesday said it plans to inject funds into IKA, the principal pension fund that covers 70 percent of the country’s workforce, from the budget and via 15-year bond issues. The state contribution would be tied to the country’s gross domestic product growth, averaging 1 percent up to 2008 and a fixed 1 percent in the subsequent years to 2032. The first installment, in 2003, is set at 1.38 billion euros. This increases gradually over the years and is projected at 5.9 billion euros in 2032. The first bonds will be issued in 2008, with the proceeds going toward the establishment of a reserve fund for IKA’s future liabilities. Following the last round of wage negotiations, employers have offered a 5.2-percent wage increase this year and a 3.5 percent rise in 2003, including compensation clauses for inflation. They have, however, asked that overtime pay be calculated according to the previous structure before then-Labor Minister Tassos Yiannitsis introduced a stricter and costlier overtime scale.
