Industrial Relations in Europe 2012 - European Commission - Europa

After the substantial increase observed in the 2000-2009 period, Greece has experienced the largest
reductions, with cumulative and increasingly deep pay cuts introduced since the start of 2010,
targeting the complex system of allowances as well as basic pay. Starting with a pay freeze in 2010
for those earning over EUR 2,000 a month, the policy shifted towards reductions in allowances for
public sector workers with some variations between occupational categories. The so-called 13th and
14th month salaries were reduced before being abolished for public sector workers. In February
2012 as a prerequisite for additional financial assistance from the EU and the IMF, the Greek
parliament approved a new and unified public wage grid with the aim to further reduce wages by
20% on average and introducing some merit based performance bonuses. Later on, special wage
regimes, which were not affected by the new wage grid and used to lead to higher-than-average
wages, were reduced by 12% on average starting from August 2012.
Table 4.4 Pay cuts, pay freezes and other measures affecting public sector employment in
selected countries 2008 - 2012
BG
Pay Cut Pay Freeze Other measures
CZ 10% cut in wages in 2011 Until 2014
Proposed replacement of seniority advancements with bonuses.
Employment in central government fell by 12% between 2009-
2011.
DK No real wage Removal of seniority bonuses in 2011
increase in 2010
DE
6.3% wage increase
between 2012-2014
for 2m public sector
employees
EE Cut in basic payoff around 6%
- larger reductions in public
2009 and 2010 Abolition or reduction of performance related supplements and
other additional payments
administration between 2008
and 2010.
IE At least 5%, 10% for new
recruits
EL A series of on-going pay Pay freeze for public Reduction and subsequent elimination of 13th and 14th monthly
reductions and a new pay sector workers salary-and new pay structure with a total effect of minimum least
structure
earning more than 15-20% pay reduction. Complete change of collective bargaining
€2,000 per month system and shift to elements of incentive pay. In 2011, increased
(2009)
working hours from 37.5 to 40 hours per week. Planned reductions
in employment of 150,000 (20%) by 2015
ES 5% pay cut in 2010 2011 and 2012 In 2012 increase in working hours from 35 to 37.5 hours per week
and increased contact hours for teachers
FR
Pay scales frozen for
2 years
Replacement of 1 in 2 staff that leave the public sector
IT 5% on salaries over EUR Wages frozen at 2010
90,000, 10% over EUR level for 2011-2013
150,000 for 2011-2013 with possible
extension to include
2014
CY Proposed in 2011 3 years
LV
15% in 2009; 2010 pay cut by
20% for higher paid & by
15% for lower paid
LT Cut of 15% Until 2012
Collective bargaining suspended 2010-2012
Workforce attrition – only 1 in 5 workers replaced in 2011-2013
period with possible extension until the end of 2014
As part of package agreed with the IMF: introduction of single
remuneration system for those in central & local government
institutions, which cut pay in 2010 by on average 5% compared
with 2009.
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