IOANNOU, Christos, Organisation for Mediation and Arbitration, Greece, Greek Public Service Employment Relations in the Era of Sovereign Default: A Gordian Knot?
The public sector grew up fast both in terms of public sector expenditure in GDP ....
Paper presented at
the Special Symposium
"Public Service Employment Relations in an Era of Austerity: Cutback Management of Structural Reform?"
3rd July 2012,
ILERA (IIRA) World Congress 2012, Philadelphia, Pennsylvania, USA.
Extended Summary
The crisis in public sector employment relations in Greece is more than a fiscal consolidation procedure or a public management reform for gradual adjustment. It is a “critical juncture” caused by the shock/collapse of a Southern European model that, under the eurozone participation, perceived its buttressed old characteristics as everlasting and sustainable, and now opens a possibility of change albeit with conflict and pain.
At the heart of the public sector employment relations crisis in Greece lays the imbalance between the exposed and the protected sectors of the Greek economy. Imbalance that has been exacerbated since the Eurozone participation started in 2001. The protected sector, which includes central and local government, public utilities, construction, etc, crowded out further the exposed sector producing traded goods and services. Despite the political economy argument that, since the Greek entry in the
Eurozone, the economy will adjust to the new competitive conditions of the currency union, the protected public sector grew up fast to accommodate the avoidance of competitive adjustment in conditions of currency union.
The public sector grew up fast both in terms of public sector expenditure in GDP ....
