Greece to lay off more than 27,000 state workers

ATHENS, GREECE (BNO NEWS) — Greece has announced it will be cutting the jobs of more than 27,000 civil servant employees by the end of the year as part of its cost-cutting measures, local media reported on Monday.

Greek cabinet members on Sunday agreed to the measures and, after their meeting, announced that between 7,000 and 8,000 civil servants will be made redundant and receive a severance pay by the end of the year, while up to 20,000 others will be placed on ‘labor reserve,’ Athens News reported.

According to the government, those placed on labor reserve will be receiving 60 percent of their salaries by December. However, the agreement states that if those placed on the reserve fail to find another civil service position within the next twelve months, they would be completely let go, although they would receive full pensions.

The labor reserve measure, which was prepared alongside the European Commission, European Central Bank and the International Monetary Fund (IMF) will mainly apply to state workers who are 60 years old or older and due to retire within the next two years.

The measure also includes around 1,000 elementary and junior high school education employees as well as state agency workers. The first batch of people to be laid off will be drawn from ministries and the wider public service, including local government, state agencies and state-run enterprises.

In addition, the measure will require around 1,000 civil servants who continue to work past their retirement age to retire immediately. Those expected to be transferred to other positions – an estimated 6,000 to 7,000 employees – will also be laid off if they refuse their new posts.

The cost-cutting measures are expected to save Greece around 300 million euros (398 million U.S. dollars) in 2012. Next year, the Civil Service Hiring Examinations Board and European Union experts will conduct an evaluation process to determine whether more cuts are needed.