Troika wants more austerity; Greek workers honor general strike; two austerity measures ruled illegal

A committee of the European Council ruled that two Greek austerity measures aimed at curtailing labor rights are illegal. Meanwhile the European Union, the International Monetary Fund, and the European Central Bank, otherwise known as the troika, demanded that the Greek government take further steps to curtail labor rights.

The troika made its demands when its representatives met with the Greek finance minister in Brussels this week to discuss the terms of $17.7 billion loan that the Greek government is seeking to prevent default on loans that are coming due in November.

Among other things, the troika is demanding that the Greek government slash the severance pay that private sector workers receive when they are dismissed from a job, eliminate automatic cost of living raises that private sector workers receive once every three years, and fire 15,000 public sector workers.

The Greek government has already reduced pensions, frozen pay for public sector workers, substantially reduced social spending on services like education, health care, and social insurance. These and other austerity measures have caused misery throughout the country, whose unemployment rate is nearly 24 percent.

While the Greek finance minister was meeting with representatives of the troika, Greek workers on October 18 staged a general strike to protest the government’s willingness to sacrifice the short- and long-term interests of Greek working people to the desires of Europe’s financial elite, which sees the Greek economic crisis as an opportunity to eliminate rights and protections that Greek workers won through hard fought struggle over many years.

“Agreeing to catastrophic measures means driving society to despair and the consequences as well as the protests will then be indefinite,” said Yannis Panagopoulos, leader of GSEE to Reuters.

GSEE, a confederation of private sector unions, along with ADEDY, the confederation of public sector workers, organized  Thursday’s general strike.

The misery brought on by the austerity measures and the demands by the troika for more cuts has created a popular backlash against the government.

A recent poll shows that if an election were held today, the leftist Syriza party, the main opposition to the Greek government would win more than 30.5 percent of the vote, more than three percentage points higher than the 26.9 percent it won during elections last June.

New Democracy, the right wing party that leads the current coalition government had the support of only 27 percent of the people polled.

The fascist Golden Dawn, which opposes the austerity measures but also assaults immigrants and blames them for the economic crisis, increased its support to 14 percent among those polled.

Members of Syriza joined the general strike on Thursday. Speaking about the Greek government, Alex Tsipras, Syriza’s leader told  Reuters as he marched with general strikers in the streets of Athens, “Their time is running out. People are taking matters into their own hands.”

About 70,000 people marched through Athens, and commerce and transportation throughout Greece either ground to a halt or slowed noticeably. Flights were cancelled, public transportation was disrupted, and hospitals, schools and shops shut down.

The general strike and the possibility of more general strikes appears to be shaking the resolve of the government. Members of PASOK and Democratic Left, two minority parties that are part of the coalition government led by New Democracy, said that they wouldn’t accept the new changes to Greek labor laws sought by the troika.

“Further interventions on labor issues don’t help productivity, competitiveness or employment,” said Evangelo Venizelos, leader to PASOK on Greek television. “We must look elsewhere now and the (troika’s) insistence on this is wrong.”

While the troika seeks to curtail more labor rights, European Committee on Social Rights, a standing committee of the European Council, ruled that two austerity measures passed by the Greek government are illegal.

One of the austerity measures lengthens the probationary period when a worker can be fired without notice; the other reduces the minimum wage for workers 25 years old and younger to two-thirds of the minimum wage for those older than 25.

The Committee on Social Rights  serves only in an advisory role and has no power to enforce its decisions, but it is possible that the committee’s ruling could bolster legal action that Greek unions are taking to overturn some of anti-labor austerity measures that the government has implemented at the behest of the troika.

A statement issued by the committee about its ruling said that budgetary readjustments necessitated by the global economic crisis should not lead to an erosion of workers’ rights enshrined in the European Social Charter.

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