Greece and the Hellenic Federation of Bank Employee Unions (OTOE) next week, regarding the plans, which banks will submit to European Central Bank in May.
These documents concern both the plans of Greek banks’ “weaning” from ECB liquidity programs, which will determine the granting of additional €30b, and the obligations for cutting of operating costs. These obligations will change dramatically the working conditions in the banking sector ahead of the negotiations with OTOE for the signing of a new collective agreement.
While, the two sides are expected to meet next week, banking sources indicate that ECB has put Greek banks under pressure to proceed with cutting of costs by 10%. If an agreement is not reached in the next meeting, then the cutting will be forced later this year with a legislation. “There is no other way to preserve jobs”, said a banker.
OTOE does not share banks’ opinion, as it believes that the cutting of operating costs by 10% could be achieved though cuts in bonuses and salaries of the top officers.
A senior OTOE member told Capital.gr, there is a possibility of a 20% lowering of costs with cutting of “unsettled” costs, amounting to €500m annually.
This position presages that it would be difficult for bankers and bank employees to reach into an agreement.
According to Capital.gr sources, bankers will recommend cutting of 5% in salaries or slightly lower while safeguarding jobs. These reductions would probably be considered satisfactory by the ECB, as OTOE preserves jobs, while it could restore the previous situation after the crisis.
OTOE refers to profits of more than €60b over the last decade, and maintains its position against any reduction in wages, asking all unions not to sign any agreement. Asked by Capital.gr what will happen if negotiations reach an impasse, a senior member of OTOE said that the current agreement would apply as it happened in 1992.
source: CAPITAL
