Leaked Troika Letter Demands Greek Workweek Be Expanded To Six Days

Tyler Durden's picture




 

If true, and we don't see a reason to doubt it veracity, the just leaked Troika letter sent to the Greek Labor Ministry, courtesy of The Telegraph's Bruno Waterfield, which sees the Troika demanding a 6 day work week, to wit: "Measure: Increase flexibility of work schedules: Increase the number of maximum workdays to 6 days per week for all sectors." This means that Greece is effectively out of the Eurozone, as there is no way the Greeks, no matter how much they want to be a vassal state of Brussels, will agree to this kind of treatment. Although one may expect the Syntagma square riot cam will be up and running well before the Grexit is a done deal.

From Pastebin via Bruno Waterfield

Leaked letter from Troika to Greek Labour Ministry

Greece. Labor market reforms
 
1.      There should be no backtracking on recently passed labor market reforms. The mission welcomes the social dialogue as a means to consult with social partners, and to address the remaining challenges in the labour market. The labour reforms introduced in March, including the needed re-alignment of wage floors, need to be preserved well beyond the present round of social dialogue, and the government should act accordingly to ensure this.
 
2.      The government should take the next steps towards better functioning labour markets and employment creation (Table 1):
 
•     The framework for setting the minimum wage needs to be overhauled to help ensure that wage dynamics support full employment. After the measures taken in February to re-align wage floors, the objective—as agreed in the programme—should be to adopt a timetable for establishing a single-rate statutory minimum wage on a permanent basis legislated by the government after consultation with social partners. This system should provide a basic floor for labour income.
 
•     Non-wage labor costs and barriers to employment must be addressed to support competitiveness and alleviate the pressure on wages:
 
        ?     The labor tax wedge should be reduced. Concrete measures should be proposed to reduce social            contribution rates by 5 percentage points in a fiscally-neutral manner (as envisioned in the second programme).
 
        ?     Other non-wage labour costs which ultimately affect entry and exit costs should be reviewed and reduced, taking into account the effects of recent labor market reforms.
 
        ?     Excessive regulatory burdens should be reduced, while regulatory effectiveness should be increased. These include cumbersome data reporting to and approval requirements from the labour inspectorate. A comprehensive strategy is needed to reform the labour inspectorate. A roadmap should be adopted and an independent assessment of Labour Inspectorate by international experts contracted, covering mandate, activities, structure and the enforcement and penalty structure for infringements of labour law (including undeclared work) consistent with the principle of proportionality. The government should be ready to promptly take the needed corrective actions soon after that.
 
        ?     Work schedules can be made more flexible. Required actions include increasing the maximum number of weekly workdays, new modalities of working time and daily working hours arrangements and take up of annual leave. Revising labour legislation for specific sectors or professions within the context of product and service market reforms is necessary to help the latter reforms to succeed.
 
        ?     Unemployment is too high, and policies are needed to prevent it from becoming structural. The ESF can provide resources which can be used to help integrate the unemployed into those economic sectors with higher growth potential. The procedures related to ESF schemes (i.e. those combining work and training together with the social work programmes) should be completed as soon as possible, with a view to begin implementing the schemes by end-September.
 
 
Table 1. Greece: Labor Market Reforms
 
 
Area: Wage setting
 
Measure:  Overhaul framework for setting the minimum wage:
 
•     Adopt a timetable for establishing a single-rate statutory minimum wage legislated by the government after consultation with social partners.
•     New system should provide a basic floor for labour income which ensures that wage dynamics support full employment.
•     Consultation with social partners should be on designing the mechanism, and must not lead to an increase in the minimum wage adopted under the EFF until unemployment rates are low.
 
 
Area: Non-wage labour costs
 
Measure: Propose measures to lower social security contribution rate for employers by 5 percentage points in a deficit neutral manner:
 
•     Adjust pensions (with protection for low-income pensioners).
•     Broaden the base for contribution collection.
Reduce administrative burden to employers and employees related to cumbersome reporting and preapproval requirements:
•     Remove existing requirements for submission of working schedules, notification and/or pre-approval by labour inspectorates of overtime work, compensatory work time arrangements, and rotational work.
•     Adopt a roadmap for the gradual increase of electronic record keeping and for reporting by employers to the Labour Inspectorate, with full digitization of relevant data on labour arrangements by end-2014.
•     Accept electronic signatures in electronic submissions to the Labour Inspectorate.
Review and reduce high entry and exit costs to bring them in line with the practice in other EU countries, taking into account the effects of recent labour market reforms.
 
 
Area: Flexibility of labour arrangements
 
Measure: Increase flexibility of work schedules:
 
•     Increase the number of maximum workdays to 6 days per week for all sectors.
•     Set the minimum daily rest to 11 hours.
•     Delink the working hours of employees from the opening hours of the establishment.
•     Eliminate restrictions on minimum/maximum time between morning and afternoon shifts.
•     Allow the consecutive two week leave to be taken anytime during the year in seasonal sectors.
 
Area: Effectiveness of Labour Inspectorate
 
Measure: Adopts roadmap and contracts an independent assessment of Labour Inspectorate covering:
 
•     Mandate, activities and structure.
•     Enforcement and penalty structure for infringements of labour arrangements (including undeclared work)
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Tue, 09/04/2012 - 10:37 | 2760176 Dr. Engali
Dr. Engali's picture

Debt slaves bitchez!

Tue, 09/04/2012 - 10:38 | 2760185 the misanthrope
the misanthrope's picture

nice one, beat me to it.

Tue, 09/04/2012 - 10:47 | 2760225 Dalago
Dalago's picture

Its just like the dark ages however instead of Monarch rule is Monitary rule.  Just say fuck it, delfault and go bankrupt.

Tue, 09/04/2012 - 10:48 | 2760231 francis_sawyer
francis_sawyer's picture

Your eyes are full of hate, #41

~~~

http://www.youtube.com/watch?v=rfA371zhfHo

Tue, 09/04/2012 - 10:51 | 2760240 redpill
redpill's picture

Mr Panos says fine, we just change Greek calendar to have 20 days in a week so we get 14 day weekend, FACK YOU MALAKA!

Tue, 09/04/2012 - 11:20 | 2760406 bigkahuna
Tue, 09/04/2012 - 11:39 | 2760453 The Big Ching-aso
The Big Ching-aso's picture

 

 

Why don't Greeks just emigrate 2 the U.S. already & work 0 days & get paid for doing nothing?

Tue, 09/04/2012 - 10:48 | 2760233 GetZeeGold
GetZeeGold's picture

 

 

I'm going to Iceland!!!

 

Tue, 09/04/2012 - 10:48 | 2760237 bank guy in Brussels
bank guy in Brussels's picture

Arbeit Macht Frei

Tue, 09/04/2012 - 10:51 | 2760247 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

And now we see the problem with rampent no holds barred capitalism - the destruction of the standard of living for everyone. The working week in Greece should be cut to 4 days, and 3.5 days for working parents. I'm sure everyone on zero hedge would like to see good greeks worked to death just to satisfy their deities, the great wealth creators; I'd like to see them rounded up, and their assets stripped. No one deserves to be sipping margaritas in barbados while honest workers in the public sector are having their pensions stollen.

Tue, 09/04/2012 - 10:56 | 2760278 bonderøven-farm ass
bonderøven-farm ass's picture

And now we see the problem with rampant crony capitalism - legislation burdeoning the laboring class in favor of banking/financial/corporate/elitist interests.

*fixed it for ya Buttercup 

Tue, 09/04/2012 - 15:48 | 2761559 I am on to you
I am on to you's picture

Den sidder lige i røven,men fæhovederne vil ikke fatte det,de tror stadig det regner!

De blev solgt til Kina,uden at kny+4.8 milliader til østarbejderne alene i 2008,i udelægger fradrag,det kan man kalde bonderøv,hvis noget er!

Tue, 09/04/2012 - 11:01 | 2760296 ElvisDog
ElvisDog's picture

One little problem with your 4/3.5 work week idea - a large percentage of Greeks work in the public sector, the only way their salaries are paid is by borrowing money from Germany/Finland/Netherlands, and there is no fucking way G/F/N is going to keep giving Greece money if they reduce their work week to 4 days. That's the problem with relying on the kindness of strangers to maintain your lifestyle.

Tue, 09/04/2012 - 11:13 | 2760384 Renewable Life
Renewable Life's picture

Well said........I agree with the idea of a 4 day work week(or less), as long as its selling services or goods to the tourist at outrageous prices or some other entrepreneural endeavor!!! But when your money comes from taxpayers or borrowed or both, it unproductive bullshit that will always lead to the same end.......where Greece is today!!!!

Tue, 09/04/2012 - 11:35 | 2760463 The Big Ching-aso
The Big Ching-aso's picture

 

 

The last time I saw a Greek work for 6 days was during the period of 2008 to 2011.

Tue, 09/04/2012 - 11:40 | 2760534 goldfish1
goldfish1's picture

This ain't hard people. Cut right to the quick...confiscate wealth from the 1% limiting to $500 Million.

Honor a reasonable pension. Reset all else to zero. Banks absorb all losses. Graduated income tax. All corps pay 75%. No deficit spending, period. Each county in the county gets 2 congressional reps.

All congress disbanded...all Supreme Court turnover in 5 years.

Phase out food stamps, unemployment, medical insurance. Reset maximum earnings for medical profession.

continued...

Tue, 09/04/2012 - 23:28 | 2763197 Lord Koos
Lord Koos's picture

yeah that'll be a real pretty picture

Tue, 09/04/2012 - 11:33 | 2760490 Freddie
Freddie's picture

50%++ of Greeks work for the govt (union "workers").   Bankrupted by unions and other corruption.  Ditto California and Illinois.

Tue, 09/04/2012 - 10:49 | 2760186 Cult_of_Reason
Cult_of_Reason's picture

*ECB's Draghi says ECB bond purchases would help it comply with mandate

Keep dreaming, Herr Mario.

ECB bond buying will be total failure and it is just a matter of time before the markets call Mario's "believe me, it will be enough" bluff.

Eurocrisis: On Towards Total Catastrophe
http://synonblog.dailymail.co.uk/2012/09/eurocrisis-on-towards-total-catastrophe.html

Also note a 35-page paper published last Friday by the economist Charles Dumas of Lombard Street Research:

"Without euro-exit, Germany will soon be in big trouble."

Tue, 09/04/2012 - 10:43 | 2760211 foodstampbarry
foodstampbarry's picture

Well done Dr. E... Well done.

...Bullish Bitchez!

Tue, 09/04/2012 - 10:44 | 2760221 nmewn
nmewn's picture

Fascist central planners at their finest.

Tue, 09/04/2012 - 11:18 | 2760411 Zero Govt
Zero Govt's picture

why doesn't the Troika do a 6 day work week, drop their wages, benefits, pension largesse and drop the 5 start hotel lifestyle for 2 stars or a hostel?

Let them eat cake

Tue, 09/04/2012 - 12:01 | 2760627 Zero Debt
Zero Debt's picture

The Troika suggestions are a joke. There are three budget elephants in the Greek room to deal with:

1) Military spending. Greece is the largest importer of conventional weapons in Europe. Over 500 bases which is way too many and too many soldiers, 124,000 out of 11 million people which is absurd.

2) Immigration costs. 10% of residents are illegal aliens, most are young men, and 54.9% of people under 25 are unemployed. 83% of Greeks say immigration is a major problem. In Q1 2012 64% of illeagels entered EU through Greece.

3) Rampant corruption. 42% have been asked for a bribe in public hospitals. Transparency International estimates corruption costs to 696 million USD per year.

Modest proposal: Kick out foreign military contractors (sorry Germany), slash domestic contractor spending, get serious about border protection and fire corrupt government workers.

Tue, 09/04/2012 - 12:46 | 2760840 Element
Element's picture

Maybe because if their pay fell their own tax contributions would fall, and they just couldn't live with that outcome ... oh, hang-on, they don't pay tax, do they? ... sorry, carry on.

Tue, 09/04/2012 - 11:07 | 2760353 Itch
Itch's picture

If the letter is genuine bitchez!

Tue, 09/04/2012 - 11:40 | 2760489 The Big Ching-aso
The Big Ching-aso's picture

 

 

If only there were any nobles in Greece then there could at least be a serfdom.

Tue, 09/04/2012 - 12:49 | 2760853 Element
Element's picture

The bottom line of this tactic, is these bastards are doing it deliberately, knowing that it's likely to lead to as far as a bloody civil war, or civil militia insurgency in southern Europe.

How they love doing this stuff to us ... several times per century.

And it gives NATO something nice to do to sharpen it's knives and sell some weapons.

 

Tue, 09/04/2012 - 10:38 | 2760179 the misanthrope
the misanthrope's picture

Slaves bitchez !

Tue, 09/04/2012 - 11:22 | 2760427 Zero Govt
Zero Govt's picture

if a patronising French bitch beat you around the head with a Loius Vitton handbag what would you do?

Precisely..

...grab your pitchforks Gentlemen, poodle hunting season has just kicked off in Greece

Tue, 09/04/2012 - 11:44 | 2760549 goldfish1
goldfish1's picture

only takes 2 poodles

Tue, 09/04/2012 - 10:39 | 2760180 camaro68ss
camaro68ss's picture

Work slaves!!

Tue, 09/04/2012 - 10:43 | 2760184 NewWorldOrange
NewWorldOrange's picture

I don't doubt the truth of this leak one bit.

Speaking of leaks today:

"Do you own an iPhone or iPad? If the answer is yes, there's a small chance that your personal information may have been made public by hacking group AntiSec. The hacking group claims to have obtained a list of more than 12 million Unique Device Identifiers (UDID), user names, cell phone numbers, addresses, and more, by hacking a computer used by an FBI employee. The FBI has yet to confirm that claim, but AntiSec has posted a partial list of more than 1 million device profiles to call attention to the alleged tracking"

I don't doubt the source of this "leak" either.

Tue, 09/04/2012 - 10:44 | 2760220 Conrad Murray
Conrad Murray's picture

Fuck em. Leak everything. PM2012, code it.

Tue, 09/04/2012 - 11:02 | 2760321 NewWorldOrange
NewWorldOrange's picture

Heh. You have to wonder, where did the FBI get the data?

cough...Apple...

Tue, 09/04/2012 - 11:07 | 2760347 machineh
machineh's picture

Exactly. Are 'more than 12 million' phone users criminal suspects?

If not, WTF is the FBI doing with their personal data?

Tue, 09/04/2012 - 11:11 | 2760368 pods
pods's picture

In a police state everyone is a suspect.

pods

Tue, 09/04/2012 - 11:11 | 2760372 Conrad Murray
Conrad Murray's picture

What are they doing with the data? Not enough. But never fear, The State is here!

http://www.zerohedge.com/news/%E2%80%9Cwe-are-far-turnkey-totalitarian-s...

Tue, 09/04/2012 - 11:38 | 2760520 Freddie
Freddie's picture

Apple owners are sheep.

Tue, 09/04/2012 - 13:35 | 2761022 prains
prains's picture

and microsoft owners are not Frieddie?

Tue, 09/04/2012 - 22:03 | 2763000 StychoKiller
StychoKiller's picture

Microsoft OS Users are turkeys.  Only we Linux Users should be allowed complete freedom on the internet...

Bwahahahahahahaha!

Tue, 09/04/2012 - 10:39 | 2760188 Cranios
Cranios's picture

I don't see how these proposals are any different than US work rules, today. So let the Greeks work a normal schedule for once!

Tue, 09/04/2012 - 10:43 | 2760209 DaveyJones
DaveyJones's picture

As long as Goldman keeps advising them, I'm sure it will make cents

Tue, 09/04/2012 - 11:06 | 2760344 ConstantineK
ConstantineK's picture

Goldman doesn't advice them. Goldman owns them.

Tue, 09/04/2012 - 11:13 | 2760370 DaveyJones
DaveyJones's picture

Oh......like Congress...... and the other two...what do they call them, branches? 

Tue, 09/04/2012 - 11:10 | 2760367 machineh
machineh's picture

Exactly. The letter is not saying to IMPOSE a 6-day work week.

It is saying to ALLOW it ... implying that Greek law doesn't PERMIT working six days in a week, even if employees want the overtime.

Typical socialist idiocy ... '30 hours work for 40 hours pay.' Outlaw mathematics!

Tue, 09/04/2012 - 13:46 | 2761063 Ghordius
Ghordius's picture

Cranios, machineh, +1 Note that there is no comparison to any other country. It would somehow spoil the (oh wonder: Telegraph) article to write: "...like in countries X & Y".

How likely is it that they missed the chance of writing "the harshest laws of the eurozone"?

Tue, 09/04/2012 - 10:42 | 2760193 Shizzmoney
Shizzmoney's picture

I predict a 48 hour work week by 2020 in most Developed Western Economies.

Remember, China/Indonesia/3rd World Working Structure is the model for Neo-Keynesians and Neo-Conservatives. 

More hours.  Stagnant pay.  No benefits.  All to "cut the fat" in the name of bigger DOW asset prices. 

Worship the DOW, the Dollar, the Stock Market - the true "God" that AMericans bow down to today.....with Wall Strett and Corporations playing the role of the "Pharoah".

 

Tue, 09/04/2012 - 10:49 | 2760244 poor fella
poor fella's picture

Labor Day is soooo fucking yesterday!!

Tue, 09/04/2012 - 11:28 | 2760466 GlomarHabu
GlomarHabu's picture

Everything is so yesterday ...just try to get one day back ... now our tomorrows include a global depression. billions dead, fly and maggot infested bloating bodies everywhere,canabalism,,no medicine to control diease, NO ELECTRICITY, no law ...and just think we did it to ourselves by too many buying into believing in a Marxists philosophy so mutated that Marx repudiated it himself.

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