Vol. 76/No. 8      February 27, 2012

The measures, approved by parliament that day in a 199-74 vote, include a 22 percent reduction of the minimum wage, with an additional 10 percent cut for those under 25 years old; pay freezes until the unemployment rate drops from the current 19 percent to under 10 percent; a 3 percent cut in employers’ contributions to the national health insurance; and slashing the public sector workforce by 15,000 this year and 150,000 by 2015.

Parliament also approved a change to labor laws. Collective labor agreements had previously applied to all workplaces in a particular sector, even those without a union. Under the revised law, once those contracts expire, employers are free to attempt to negotiate wages worker by worker, including in union shops.

The new austerity measures were approved under pressure from the International Monetary Fund, the European Central Bank and the European Commission—the so-called troika. In exchange they pledged $170 billion to a fund for future “bailout” loans. The deal includes a separate agreement with private lenders to write off 70 percent of the debt owed by the Greek government.

The protests were called by the country’s union federations. A dense cloud of tear gas hung over much of the center of the city as a heavy police presence and clashes with black clad anarchist youth kept the demonstrations away from parliament.

About 20,000 workers protested in Athens Feb. 7, and then again on Feb. 11 as part of strikes called by the union federations. Although most workers reported to work, many workplaces in industry, public transport, ferries, and some schools and hospitals were shut down by the strikes.

“The measures are unjust,” Michalis Perantinos, a worker at Athens international airport, told the Militant. “You can’t on the one hand throw me into sordid poverty and on the other continue asking me to pay for your debts.”

“Greece today is an example of what can happen throughout Europe,” said Moisis Litsis, who has been on strike at Eleftheotypia newspaper since Jan. 1. “Solidarity of European workers with not only our struggle at the newspaper but with working people in Greece is crucial.”

The new measures, the deepening capitalist crisis, and potential growth in protests have caused fissures in the ruling class parties. A total of 41 deputies from the coalition partners of the Socialist Party PASOK and the conservative New Democracy were expelled from their parties for voting against the latest measures.

The right-wing LAOS Party, which had been part of the coalition, voted against the measures. Its party leader, Georgios Karatzaferis, said, “Greece can survive outside the EU but cannot survive under a German boot.” LAOS expelled two of its deputies for voting for the measures.

Bobbis Misailides and Natasha Terlexis contributed to this article.  
 
 
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