Image: ANA
Police will attend representatives of the Ministry of Employment and Social Security during their inspections of trade facilities across the country. This is what the Deputy Minister of Employment George Kutrumanis said at a press conference on the new reforms of the social security system. Due to the high percentage of workers without contracts and social securities, the presence of authorities during the inspections is imperative.
Since the beginning of the year “black” workers were trying to escape or hide in many cases in warehouses and even toilets not to be apprehended at their place of work without papers. The inspectors will be accompanied by representatives of local police to avoid such scenes. They will have to prevent similar incidents.
Most shocking is the situation on Crete, where the percentage of violations of labour law are the highest. Minister of Employment and Social Security Andreas Loverdos announced that he will send a special commission to Crete early next week. The inspectors and tax auditors, in collaboration with local authorities will begin general inspections of tourist sites and commercial establishments on the island. The aim is to reduce illegal employment, so that the state increase its revenues from social and health insurance funds. This practice will be implemented across the country until the end of the year in order to minimize the social and health insurance fraud.
The Secretary of the Ministry of Employment and Social Security Atinas Dretta announced at the beginning of the year that the Greek social insurance funds were loosing around € 20 billion annually till 2009 from the operation of illegal economic emigrants in the country. According to unofficial data losses due to the illegal work of Greeks in the country are at least eight billion euros per year.
Deputy Minister George Kutrumanis stated that according to recent data, social insurance funds in the country will have a deficit between € 350 billion in the best case to € 700 billion at worst. The more efficient the implementation of independent and effective inspections the less will be the value of social security deficit by year's end. Kutrumanis emphasized that despite difficulties in tackling illegal employment the Ministry he represents has made serious cuts in administrative costs, which reached the amount of € 3.3 billion compared with 2009.