Filenews 19 July 2024 - by Adamos Adamou
A further widening of the wage gap between private and state workers – which the IMF finds in a report – is expected to be caused by the decision yesterday to give a small general wage increase to the wider public sector, for the first time since the country's exit from the memorandum, provided of course there are no generous increases in the private sector.
The agreement on the first general increase of 1.5% in 15 years, as of October this year, to thousands of public sector workers, the wider public sector and retired state employees confirms the improvement of public finances and the return to normality regarding public sector employment, which is gradually underway. with haircuts rebates, the resumption of surcharges and the restart of ATA.
It goes to €4 billion. The payroll
The agreement for general wage increases of 1.5% was locked yesterday at the Ministry of Finance, after meetings held by Finance Minister Makis Keravnos, initially with the trade unions SEK and PEO and later with PASYDY. It is estimated that the increase will further inflate the state wage bill – which includes state pensions – by €60 million whereas this is expected to amount to around €4 billion at the end of the year and next year to surpass them. The agreement for the semi-public sector was reached with the framework agreement covering the period 1.1.2022 – 31.12.2024 in the wider public sector and Local Government Authorities signed by the leaders of the trade unions SEK and PEO and Mr. Keravnos, while the same percentage increases for the public sector were locked in the context of a meeting of the MEP, which reportedly followed.
What PEO and SEK said
According to PEO's announcement, the framework agreement provides for a general increase of 1.5% in the basic salaries of semi-public sector employees, as of October 1, 2024, with the general secretary of the trade union Sotiroulla Charalambous stressing that an important parameter is that the Framework Agreement sets the amount of €27.60 per month as a minimum amount of increase, to cover the lowest wages – a provision that will also apply to the public sector. with a minimum monthly increase of €27.40, as announced by PASYDY.
The agreement, SEK states in its own announcement, has a three-year duration and concerns the years 2022 to 2024 and covers permanent employees, fixed-term and indefinite employees, as well as hourly paid technical staff of semi-governmental organizations and Local Authorities.
The two unions expressed satisfaction with the agreement, as did PASYDY, in its own statement. Immediately after the signing of the framework agreement, SEK General Secretary Andreas F. Matsas underlined that the agreement will enable approximately 50,000 employees and pensioners of the public and wider public sector to enjoy the improvement of their salary benefits. He also said that it is proven once again that through institutionalized and healthy social dialogue all parties can reach mutually acceptable solutions, for the benefit of workers and the economy.
In her own statements, the General Secretary of PEO, Sotiroulla Charalambous, pointed out that "the agreement we signed is for us a confirmation of the importance we must all give to the support of Collective Agreements, as the mechanism that regulates the terms of employment of employees".
At the same time, he referred to the pending issue "regarding low-wage earners in the A1-A2 scale, as well as the issue of job de-icing", indicating that "for us it is very important that the needs that exist in organizations are paid in time to minimize the phenomenon of employees of other speeds that create problems both for the organizations themselves and for the handling of these cases."
According to "F", the framework signed yesterday includes a commitment by the two unions that they will not claim wage increases for 2025, which together with the small increase agreed seems to have facilitated the discussions.
Makis Keravnos: Within our capabilities
Finance Minister Makis Keravnos, announcing the agreement, said that it "is for the good of workers, society in general, but also within the capabilities of our economy."
The minister thanked the trade union leaders for their positive stance in reaching this agreement and at the same time expressed his appreciation to them, because for four consecutive agreements, as he said, "the social partners consented to zero increases".
He also said that the agreement demonstrates that "through proper consultations, through mutual understanding of the circumstances that our economy is going through today, with all these geopolitical developments, the trade unions have shown a responsible attitude and have fully understood the need to contain wage costs and the fiscal discipline that we must follow. in order to ensure the growth of our economy".
