New employment initiatives target redundant Softex workers

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Following a large-scale redundancy at the Athenian Paper Mills SA (Softex) plant at Drama, Greece, in late 2002 and early 2003 the Ministry of Labour and Social Security and the Ministry of National Economy launched three new employment schemes for the workers left jobless. The measures include employment creation and subsidy schemes and support for self-employment.

The Ministry of Labour and Social Security and the Ministry of National Economy have implemented three special schemes to create and boost employment prospects for employees made redundant at the Athenian Paper Mills SA (Softex) plant at Drama (GR0005170N).

The first scheme was signed and put into effect by the Ministry of Economy and Finance on 13 January 2003 and involves around 200 workers (men aged over 50 and women aged over 45) who will be offered guaranteed employment for four years at a minimum monthly wage of EUR 750, along with the corresponding social insurance coverage. The workers will be employed by bodies in the public as well as the private sector, on the basis of plans elaborated by the local prefectural authorities in collaboration with the Ministry of Economy and Finance. The total cost of the government-financed scheme is EUR 13.7 million.

The other two schemes, which were put into effect in November 2002, are an initiative by the Ministry of Labour and Social Security and involve a total of 450 people aged 18-64 who were made redundant by Softex and are now unemployed.

In accordance with the relevant decision signed by the Minister of Labour and Social Security, the first scheme provides for the setting up of a structure with the task of registering unemployed former Softex workers, searching the local labour market for job vacancies, providing support/consultative guidance with regard to training, employment and self-employment, as well as monitoring and evaluating the scheme. Private enterprises may become part of the scheme, on the condition that in the three months preceding the month they apply to join they have not made dismissed any employees without replacing them and that they will hire former Softex employees. Employers will receive a subsidy for employing these workers, set at EUR 20.54 per working day for full-time employees for up to 25 days per month, provided that each subsidised worker receives at least 20 days’ wages per month.

The duration of the subsidy for each enterprise joining the scheme is 24 months, and upon termination of the subsidy the enterprise must retain the employees concerned for a further six months. In the event that an enterprise concerned dismisses any employees and does not replace them within 30 days, the scheme will be discontinued for the number of jobs by which the staff was reduced and the proportionate amount of the subsidy will be returned. The total cost of implementing this measure will be borne by the Account for Employment and Vocational Training (LAEK).

The second scheme provides subsidies for young people to become self-employed. Each former Softex worker eligible under this measure receives a total amount of EUR 12,326. Upon inception of the scheme, each eligible person receives EUR 3, 522, and the rest is paid in four equal instalments of EUR 2,201 every six months, beginning on the date the approval decision was signed. A basic precondition for joining the scheme is that a person must become self-employed and must have not received a subsidy in the past from a similar scheme for young self-employed people. Furthermore, all interested individuals must be registered with the Labour Force Employment Organisation (OAED) as unemployed.