Of minimum wages and other vices of the labour market…

The outcome of yesterday’s first day of social dialogue regarding the future of the minimum wage in Greece is important for two reasons: first, because the social partners vowed their support to the 13th and 14th salary and agreed any pay decreases (or wage freezes – practically it’s the same any way) to be implemented from 2013 onwards (with the signing of the new national collective agreement); and, second, because their stance provides a firm answer to the government’s ‘threat’ that it will legislate a reduction to the minimum wage if the social partners’ agreement is not deemed viable.