FINANCE Minister Makis Keravnos yesterday said talks on extending retirement age in the public sector from 60 to 63 were going well, indicating that a decision might be taken some time in the next few days.
Prior to the meeting with trade unions SEK, PEO and PASIDY, Keravnos let it be known that time was running out for implementation of the measure; the move is part of the government’s convergence plan, which involves improving the state of public finances.
More importantly, however, changing the current system is imperative if the social insurance fund is to survive beyond the year 2011. The fund is already £2 billion in deficit and in danger of imploding if contributions to it are not raised.
The change would affect all people employed in the civil service, semi-government organisations and local administration. But resistance or feet dragging by the powerful unions has delayed developments for almost a year now.
Right-wing trade union SEK has been the least resistant, in principle backing the Finance Ministry’s proposals for a gradual increase of the retirement age to 63. It says the extension would reduce the strain on wage earners in the private sector and would remove the mistaken perception that a civil servant should retire before a builder or manual worker.
However, the union disagrees with plans to abolish existing benefits such as the right to draw unemployment benefit for those who retire at 60 and the right to draw a pension for workers who retire before the age of 63.
When the issue surfaced last year, PASIDY, the civil servants’ union, and left-wing PEO were openly hostile to the government’s plans. To accept the proposal, they asked for a number of trade-offs, such as wage increases or better retirement benefits for those affected.
But following months of deliberations and give-and-take, the sides seemed to be closer to convergence yesterday than ever before.
Statements by SEK’s Demetris Kittenis and PASIDY’s Glafcos Hadjipetrou yesterday suggested their unions were willing to play ball. While SEK insisted on a gradual implementation, PASIDY said they would not commit until they saw the proposal drafted by the Finance Minister.
Speaking to the media after the meeting, which he described as “constructive”, Keravnos said he would be presenting his proposal to the Cabinet in the next few days; this proposal would be based on the views exchanged yesterday, he added.
“I’d like to think that very soon we shall be able to resolve this matter,” the minister said.
“The conclusion of this dialogue will be a proposal of general acceptance,” he added.
But PEO seemed to be holding out, with union boss Pambis Kiritsis saying they still had some reservations.
“However, if the other unions go along with this, then we do not wish to become the only cacophony in the group,” Kiritsis noted.
