Despite pressure, Greek unions and employers reject wage cuts needed to get more rescue loans
By Associated Press, Updated: Friday, February 3, 1:42 PM
ATHENS, Greece — Greek unions and employers’ associations on Friday rejected private-sector wage cuts, as demanded by the country’s international bailout lenders if Athens is to receive a new rescue package and avoid bankruptcy.
The impasse appeared to be holding up final negotiations for massive new debt agreements — a eurozone finance ministers’ meeting, previously scheduled for Monday to back the new proposals, was postponed to later in the week.
Apart from the bailout talks, Greece is also conducting urgent negotiations with its private creditors, who are being asked to take steep losses on their Greek government bonds. More talks on the writedown — which would slash Greece’s national debt by €100 billion ($131.6 billion) — will be held in Athens over the weekend.
In a letter to the government Friday, Greek unions and employers said they rejected proposals to slash the minimum wage and further cut annual salaries. Private sector workers have already suffered a 14 percent loss in income due to emergency taxes imposed since the beginning of 2010, the letter said.
