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June 19, 2010

Trouble brewing as Papandreou begins push on pension reform

Kathimerini reports on the growing conflicts within the ruling PASOK party, forced to deal with the IMF/eurozone demands for changes in employment and pension plans in Greece:

"Planned changes to labor relations and the pension system, which have provoked an outcry by labor unions and opposition parties, yesterday were also fueling tension within the ranks of ruling PASOK, sources told Kathimerini.

Labor and Social Insurance Minister Andreas Loverdos reportedly received orders yesterday from Prime Minister George Papandreou to discuss with labor unions the content of a presidential decree that would make it easier for employers to dismiss staff and change the way that settlements to dismissed employees are paid. The decree, made public by Loverdos earlier this week, has already prompted the country’s two major unions to call a general strike for June 29."

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