IMF's 'Competitiveness Drive' Leaves 127,000 Greeks Earnings Under $110 Per Month

Tyler Durden's picture

The dramatic shrinkage of Greek earnings due to recession, the explosion of unemployment and the dominance of flexible forms of employment is exposed in a new document submitted by an experts’ committee to Greek Labor Ministry. As KeepTalkingGreece reports, the document featured details wage inequality during the period 2010-2015 and exposes a new social class of workers: the Neo-Poor Greeks earning wages much less than the unemployment allowance of 360 euro.

According to data of the Ministry:

126,956 employees are paid a gross monthly salary of 100 euros.

 

343,760 employees are paid monthly salaries between 100 and 400 euros gross.

 

Basically it is workers with part-time or job rotations of two or three days a week or even of a few hours a week.

It is worth noting that, according to data from Greece’s biggest Social Security Fund for Employees (IKA),  the average wage for part time ranges from €400 to €420 gross per month.

These figures show that the number of the new-poor workers paid monthly wages up to €510 gross totals 432,033 people.

Data: monthly gross salary for private sector workers for 2015

Left column: wages in euro Right column total number of workers

Note: Full Time Minimum monthly wage for those below 25 years old is €510.94 gross. Minimum wage for those above 25 is €586* gross. (source: Naftemporiki)

Further data from the Labor Ministry show the increase of part-time contracts/flexible work contracts.

For example: in the time period July 2013 – July 2016:

152,636 full time contracts were changed into part-time or rotating job contracts.

The paper points out that the Greek economy is facing a serious problem due to its low competitiveness.

However, contrary to the International Monetary Fund that connects ‘competitiveness’ with ‘labor cost’ the paper stresses that:

"The lack of competitiveness is characterized as a “structural problem” which is mainly related to the specialization of the global division of labor in conjunction with the methods of organization and administration of the Greek economy rather than to the labor cost.

 

The data suggest that the economic downturn has acted as an accelerator of the expansion of part-time forms, resulting especially after 2012 to have a dramatic increase in the number of part-time workers, but also an increase in converting  full-time contracts to part-time or job rotation.”

“Labor Reforms” is the next hot potato between the Greek government and the lenders and ‘negotiations’ are expected to open officially in September. Among others, lenders want lowering the minimum wage, scrapping the 13th & 14th salary (Christmas and vacation bonus), scrapping wage raises every 3rd year.

Labor Reforms are a precondition for the second Review of the Greek Program.

* the cost for employer is additional €78 per month employers’ share for social security (13.33%) – The wage per hour has dropped down to €3.

Even if the above date show the grim reality of workers’ lives, the only good thing out of it is that they refer to “registered work” with social security. That means, that workers have at least some form of health care. On the other hand, these ‘flexible’ and low paid jobs do not add exactly to fill social security funds with much needed euro. Furthermore, those working at these ridiculous wages, they will suffer a very bitter shock, once they will have to go to retirement.

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ironicmerman's picture
ironicmerman (not verified) Jul 25, 2016 10:32 AM

Pooropolous.

junction's picture

Coming soon to a neighborhood near you.  The NWO rules the world outside of Russia.

ironicmerman's picture
ironicmerman (not verified) junction Jul 25, 2016 10:46 AM

China?  NK?  Liberland?!?!

RafterManFMJ's picture

LOL
Stupid Greeks - $110 per month?!

I earn up to $9700 per day using the computer on the inter-net! Axe me how!

Whatever... Whatever's picture

How Socialism always ends! In backrupcy... Print moar!

FringeImaginigs's picture

No, no, no. It's clearly not Socialism. In Socialsim the redistribution of wealth is from the rich to the poor. We are now in a state of advanced Capitlism were the wealth flows from the poor to the rich (and the propaganda can so controls your thoughts that you don't know up from down or your ass from your toes - as clearly evidenced).

pods's picture

Greeks get in bed with the EU and voila.

Confessions of an Economic Hitman write large.

But, blame the Greeks instead of the money powers. Now the comments about Greece living of Germany's back can commence.

pods

ANestIOS's picture

austerity policies are destroying lives (obviously in Greece and the euro south, not forgeting zero hour contracts in the (U)K, also in a neibourhood near you - if not yet soon)

 

Anopheles's picture

Austerity is simply the end result of unsustainable spending, benefits and magical thinking.

It will happen to ALL democracies.  Why?  Because in every democracy, the only way a party can achieve and hold power is by giving away free shit. They do this by deficit spending. . There's no way of giving away enough free shit and having a balanced budget (unless the country has nationalized, abundant natural resources to sell)

51.9Percenter's picture

Oh fuck off. Countries have been running deficits for a century. Besides Spain reduced its debt in half before the financial crisis. 

 

Greece.....OK yes they were irresponsible but you cant have over borrowing without over lending. 

 

What we need is a massive debt relief for the people with QE for them. Build some houses etc. 

Anopheles's picture

Oh look, more of that magical thinking, money falling from the sky and of course, eating the rich.

I guess you live in a place where it's always sunny,  there's a pot of gold at the end of the rainbow, and unicorns shit skittles. 

Ghost of Porky's picture

It could just be that they are nasty, smelly people.

TeamDepends's picture

Citizen, your centrally planned compensation was calculated to provide basic necessities according to your position. Please do not complain as we progress towards utopia, comrade!

Chuckster's picture

They seem to have voted an idiot into power...the same as our idiots did.  Let them eat cake!  Merkel will make soap out of them!

TradingIsLifeBrah's picture
TradingIsLifeBrah (not verified) Jul 25, 2016 10:39 AM

Broke and dependent on government handouts, thats how the IMF likes them.   And of course with the government dependent on IMF handouts in turn...

skinwalker's picture

If things are so bad, why don't they leave? I thought they could live in any EU country?

OverTheHedge's picture

Why don't they leave? A vast number already have.

http://www.enetenglish.gr/?i=news.en.article&id=1631

Apparently, 44,000 more people left than moved to Greece last year. Given how many immigrants there are here, both legal and illegal, that makes a difference. Anyone with education leaves, as do any with skills. This is nothing new: Greeks have been emigrating  for a century, which does seem to have and a difference, both culturally and genetically; the only ones left here are either too plumbed in to the system and therefore wealthy, too old, or too useless to leave. I know that is a huge generalisation, but I actually have to live amongst these people, and believe me, sometimes it's not pretty.

reader2010's picture

what happens in Greece is just a preview of what's gonna happen right here in no more than 2 decades. 

51.9Percenter's picture

I have been hearing this for like 8 years and it never happens. One of these days you are bound to be right though.

Atomizer's picture

They are borrowing things as a wealth redistribution agenda. Now get out there and rebuy a replacement to anchor GDP projections. 

51.9Percenter's picture

States have been borrowing since immemorial. Hell its been a LOT higher in the past such as Napoleonic war and WW2. 

 

What is really the concern is the banking sector because they are fucking everything up and the debt is too high for the people. 

Harry Paranockus's picture

In Hawaii, the welfare equivalent work value is about $47,000 per year. Why the fuck would anyone take a job for $50,000 per year? That's like being paid $1.50 per hour.

51.9Percenter's picture

Hawaii is really epensive to live though, unless you are advocating gentrification.

51.9Percenter's picture

Can the EU just forgive the damn debt already? I have Greeks running the fish nd chips shop on my street and I can't understand the fuck they are saying. I keep coming home with something missing. 

el mago's picture
el mago (not verified) 51.9Percenter Jul 25, 2016 10:53 AM

forgiveness in a banker dictionary means hyperinflation.

Atomizer's picture

We told you to leave the European Union. You did the opposite. No tears for you. Live with being dumbfucks. Cry over spilled milk. 

 

Atomizer's picture

Greeks are waiting for the Merkel immigration plan to kick in. 

/LOL

bardot63's picture

Time for a Greek coup. Time to dust off the guillotine. Human beings have an enormous capacity for enslavement, but at some point, they decide "no more." Greece is overdue.

Panic Mode's picture

Meanwhile, the lifestyle and job security of burocrats in Brussels have never been better.

Bam_Man's picture

"From those, according to their abilities, to those according to their need."

el mago's picture
el mago (not verified) Jul 25, 2016 11:51 AM

That piece of shit of Alexis sold the greek. Never trust a politician. Never, ever, ever, but i have a feeling the 99% will keep falling into the same trap on and on. You, trump worshippers, better wake up!

oncemore's picture

now it is basically the same, like all Balkan countries, Turkey, Bulgaria, Syria, Hungary, Slovakia, Ukraine, Lithuania, Latvia, Estonia. people in those countries are used to it. That is the diference.

Would they leave Eurozone, it could look today much better. MORONS! They deserve it.

InnVestuhrr's picture

Obviously a glut of humans.

Recycle 1/2 of them and then ALL the problems, eg unemployment, low wages, etc will disappear.

East Indian's picture

Well, the Greeks can  always migrate en masse to Germany, and displace the "Syrian" refugees.