ATHENS, Greece – The Greek government is urging unions and employer federations to discuss private sector wage cuts. The decision to begin the talks comes a week after Communist protesters blockes a first attempt.
The government has warned that if the talks prove fruitless it could impose wage cuts by law. Prime Minister Lucas Papademos said failure to address the issue could disrupt Greece’s international cash lifeline, precipitating bankruptcy and exit from the eurozone.
The country’s main GSEE labor union rules out any cut in the 751 euro ($977) minimum monthly salary, which the SEV employers’ federation has also said it wants to avoid.
Greece is in a fourth year of deep recession, with near-record unemployment.