Thousands of Greek civil servants forced into early retirement

[News_Editor]

Thousands of Greek civil servants forced into early retirement

2011-11-28 22:55:53 GMT+7 (ICT)

ATHENS (BNO NEWS) -- Up to 14,000 civil servants in Greece were forced to leave the public sector on Monday as the debt-wracked country tries to reduce spending, local media reported.

Some 10,000 civil servants who would have been eligible for retirement in 2013 are being moved into the labor reserve, meaning that they will receive 60 percent of their regular salary over the next year. Another 4,000 state sector employees who have reached full retirement age have been forced to retire immediately, the Kathimerini newspaper reported.

Surplus staff on open-ended contracts, who are occupied at one of the 36 soon-to-be merged or abolished services and who are two years from retirement, are also being moved into the labor reserve scheme.

Last month, Greece announced it will be cutting the jobs of more than 27,000 civil servant employees by the end of the year as part of its cost-cutting measures. Cabinet members announced that between 7,000 and 8,000 civil servants would be made redundant and receive a severance pay by the end of the year, while up to 20,000 others will be placed on the labor reserve.

The labor reserve measure, which was prepared alongside the European Commission, European Central Bank and the International Monetary Fund (IMF), will mainly apply to state workers who are 60 years old or older and due to retire within the next two years.

The cost-cutting measures are expected to save Greece around 300 million euros (398 million U.S. dollars) in 2012. Next year, the Civil Service Hiring Examinations Board and European Union experts will conduct an evaluation process to determine whether more cuts are needed.

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