Vroutsis and troika discussing mass dismissals and labor matters

The Minister of Labor Yannis Vroutsis is meeting with the troika representatives this morning in order to discuss mass dismissals, a 3.9% reduction of employer contributions and the abolition of third-party taxes.

The Greek side is concerned that the proposed 3.9% reduction of employer contributions will create a 700 million euro deficit in the insurance funds and has proposed a gradual reduction in three installments, by 2016.

The troika representatives also appear to have rejected Mr. Vroutsis proposal reduce contributions collected for family benefits and OAED training programs.

Regarding the proposed abolition of third party taxes, the troika has requested to include state subsidies to the insurance funds, which again could potentially cause a new deficit.

As for mass dismissals, the Minister of Labor is expected to repeat his position that the Supreme Labor Council must be further supported, acting on behalf of the Ministry on related maters.

Finally, the two sides may discuss the implementation of the guaranteed minimum income and the Greek request for settling debts of the Workers’ Housing Organization OEK.

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