From the stand in Parliament the Deputy Minister of Labor Vasilis Kegeroglou hinted at the government’s intention to bring changes to the legislation regarding mass layoffs. The Deputy Minister stated that the current legislative framework is outdated and that real protection is only available when the market and economy function under normal circumstances.
The discussion in Parliament was prompted by SYRIZA MP Maria Bolari, who referred to European Commissioner Rehn’s comments about removing limitations currently in place which regulate mass dismissals. Mr. Kegeroglou explained that the International Labor Office will soon submit a study so that the government can consider what changes are necessary. The Deputy Minister admitted that change was needed, since the current economic climate has allowed employers to take advantage of the current bankruptcy code.
Mrs. Bolari responded that thanks to the bankruptcy code many employees were unable to claim their slashed compensation packages and apply for unemployment benefit. The SYRIZA MP further explained that the “exceptional circumstances” cited by the deputy minister only apply to employees who had been paying their contributions for years. Mrs. Bolari predicted that the deregulation would primarily suit bankers and the capital industry.
Sustainability of the insurance system?
The SYRIZA MP also questioned the deputy minister about rumored cuts of main and supplementary pensions, with Mr. Kegeroglou referring to recent comments of the Labor Minister Vroutsis confirming that main pensions will be untouched. He did however noted that there is always the “sustainability of the insurance system” to consider.
