EMCC European Monitoring Centre on Change

IKA - ETAM

Company/organisation: 

IKA - ETAM

Geographic Location

Country/Region: 
GreeceAttiki
Location of affected unit(s): 
Athens

Company

Group: 
Greek Public Sector
Sector: 
Public administration and defencePublic administration and defence; compulsory social security84.3 - Compulsory social security activities

Employment effects

Announcement Date: 
2012-11-14
Planned Job Reductions min: 
500
Planned Job Reductions max: 
530
Type of Restructuring: 
Other
Employment Effect Start: 
2012-12-01
Foreseen End Date: 
2012-12-31
Direct Dismissals: 
500
Additional Information: 

The Social Insurance Institute (IKA-ETAM), the largest social security body in Greece, is about to dismiss over 500 employees following a Court ruling.

Various media sources announced November 14th, 2012 the dismissal of over 500 employees at IKA – ETAM due to the decision of the Athens Administrative Court according to which Law 3899/2010, under which they have been employed is anti-constitutional. According to the assessment, the aforementioned employees had succeeded in public sector exams to be employed at the Rural Bank (Agrotiki) in 2010, however the bank was privatized shortly afterwards, so the candidates were employed by IKA instead.

The decision has triggered a debate, as IKA is a very busy division of the public sector, and according to recent agreements between the Greek government and Troika, there will be no more recruitment in the public sector for the next few years, as it is currently undergoing restructuring (see here). This is reported to hinder the activities of IKA, as after the 500 dismissals the entity will be understaffed, at least until they transfer and train employees from other public sector divisions.

IKA is the state Social Security institute in Greece. The main mission of IKA is to offer insurance coverage to its members through various benefits and medical care. It covers 5,530,000 workers and employees and provides 830,000 pensioners with retirement allowance.  Other beneficiaries are disabled and old age pensioners, as well as those receiving Death Pensions. 

Sources: 
2012-11-15
2012-11-14
2012-11-14