The Supreme Labor Council has approved, by a majority vote of 4 to 3, the dismissal of 45 of Hellenic Halyvourgia’s 75 employees. The union and Ministry of Labor representatives voted against the application, arguing that the company had not provided convincing arguments that the dismissals would contribute in consolidating the company.
Nevertheless, this Council decision is expected to open the floodgates for companies to apply for collective dismissals as it is the first approval of collective dismissals since the relevant authority was transferred from the Minister of Labor to the Ministry’s general secretary and Supreme Labor Council. Until recently no Minister had approved such dismissals beyond the statutory limits.
The company’s initial proposal in February 2014 was to dismiss 90 of the 107 employees and a series of meetings and consultations with the Minister of Labor and Council followed. By the end of May the company reduced its work force to 74 via voluntary departures. Following the Council decision, the company will be left with 29 employees, rather the 17 it originally requested.
Representatives of Hellenic Halyvourgia have cited the exorbitant energy cost as a main problem, which has lead the company to operate at night when energy tariffs are lower, but wage rates higher. Additionally, the company argued that competition from abroad, particularly Italy, has limited their revenue.
SYRIZA demands repeal of “anti-labor” ruling
The opposition party SYRIZA has demanded that the Supreme Labor Council repeals its decision, arguing that the decision is “extremely anti-labor, inhumane and socially and politically criminal”. SYRIZA argues that the decision will “further facilitate employer authoritarianism and will turn workplaces into modern sweatshops”.
SYRIZA MP Dimitris Stratoulis further stressed that the decision will open the floodgates for further applications for collective dismissals and called employees, unions, local government and active solidarity and social movements to support the struggle of the Hellenic Halyvourgia employees.
