ATHENS, Greece — Greece unveiled a draft presidential decree Wednesday that will make it easier for companies to fire workers, raise the number of layoffs allowed and lower compensation payments.
The draft decree released by the Labor Ministry will allow companies with more than 150 employees to sack 5 percent of the work force every month, up from the current 2 percent. Smaller companies would be able to lay off a maximum of six workers a month.
The draft decree, which does not require parliamentary approval, also will shorten the maximum required warning period for employees regarding firings to four months from the current 24 months. If workers are given full notice, employers will pay half the compensation required for sudden layoffs.
Greece is in the middle of a debt crisis and faces rising unemployment, which reached 11.6 percent in March.
Also Wednesday, Athens metro workers walked off the job in a 24-hour strike, stopping the capital’s subway system.
The workers were striking in support of 285 contract workers whose contracts are expiring and who face losing their jobs.
All public transport workers also have called a five-hour work stoppage today to protest salary cuts and social security changes, which the government is imposing to pull Greece out of its debt crisis.
Business, Pages 24 on 06/17/2010