The Greek cabinet on Friday gave the green light to the draft bill to overhaul the local pension system and labor law.
The reforms were supposed to come to parliament this week, but there were delays in negotiations of the final draft because the IMF was pushing for even tougher measures.
The reform cuts benefits, curbs widespread early retirement, increases the number of contribution years from 35-37 to 40 and raises women’s retirement age from 60 to match men on 65.
“The draft pension bill … is slaughtering fundamental pension rights,” public sector union ADEDY said in a statement.
Loverdos said the government’s forecast was based on a new actuarial study demanded by the EU and IMF.
Prime Minister George Papandreou said Greece needed the reform to be able to pay pensions. “We can’t afford not to move forward,” he told lawmakers before the cabinet meeting.
Meanwhile, the was tension inside the ruling socialist party because deputies were pushing the Minister of Employment Andreas Loverdos to resist and water down the unpopular reforms.
Umbrella unions that control 1.2 million members will be calling a paralyzing strike Tuesday June 29.
“The bill is expected to come to parliament for discussions and a later vote as soon as Monday June 28 or the following day,” the press officer said.
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