Concerns Arise With Parliament’s Amendment Allowing Rehire of Municipal Contract Workers

An amendment that was just passed in Parliament before the Christmas break might allow tens of thousands of contract workers at municipalities around Greece to be hired in with permanent contracts.

The workers were previously in constant fear of getting the axe, while the new amendment takes away that fear from the workers, it is causing some concern for the Finance Ministry who are now afraid that the new hiring spree could derail the budget set forth under austerity measures.

This issue is that according to the amendment, municipal authorities no longer have to first seek the approval of a higher court to rehire people after their contracts have ended, and the steps for wage hikes has also been simplified, meaning more hires and wage increases may very well be on the horizon.

Experts estimate that this move could put the government’s plans to meet a target of a 1.75 percent surplus of GDP, or 3.2 billion euros for 2017; something which is much needed in order to fulfill the requirement by the country’s international lenders.