LARCO: Commitment of interventions to stop the financial bleeding of the State – Transitional measures for workers

In a package of interventions for the final settlement of those related to the , in the light of the need to stop the financial bleeding of the State from the operation of the company – which is valued at hundreds of millions of euros that burden all taxpayers – resulted in the joint ministries of National Economy and Finance, Environment and Energy and Labour. The package of interventions to settle LARCO’s outstanding issues includes transitional measures to cover employees on the basis of corresponding measures taken in other companies (e.g. Skaramaga shipyards). It is recalled that LARKO was put into Special Management in early 2020 and had long reached an economic deadlock (only debts to PPC exceeded 350m euros) and stopped operating for several months. During this time (as of 2020) the payroll of employees has been covered by the State with expenditure over EUR 100 million so far. It is also recalled that the Greek State has been convicted by the European Court of Justice of illegal State aid to the company. The tender for the sale of LARCO assets was completed in 2023 but since then an appeal by one of the participants in the Council of State is pending. The objective of the government, immediately after the judgment of the Court of Justice, is to complete the transfer immediately to the bidder. Yesterday (28.3.2024) a meeting was held between representatives of the three joint ministries and workers’ unions. The meeting was attended by the Deputy Minister of National Economy and Finance Athanasios Petralias, the General Secretary for Labour Relations Anna Stratinakis and a representative of the Ministry of Environment and Energy. The measures taken by the government are as follows: The operation of LARKO in the form it has taken until the legal problems have been overcome and the signing of an agreement with the investor is officially discontinued. The coverage of workers receiving payrolls without the operation of the company shall be interrupted accordingly. A reasonable transitional period shall be granted until 12 May with fixed-term employment contracts, with a view to providing for all sides (government, special management, workers) the necessary adjustment period. In the next few days, the adoption of the Joint Ministerial Decision setting up a special employment programme for workers in LARCO is being carried out in receptor operators through the Public Employment Service. The Programme will last for up to two years for those up to 55 years and up to seven years for those over 55 years, with a gross monthly fee of EUR 1,210 gross or EUR 1,000 net. Acceptance bodies include Regions, Municipalities, Health Centres, DYPA and e-EFKA, in areas as close as possible to workers’ homes. The aim of the programme for workers over 55 years is to complete the necessary conditions for retirement. A corresponding objective of the programme for workers under 55 years is their transition coverage until they find employment through the new LARCO investor or elsewhere. The Ministry of Labour and the IMIPA will be in close consultation with workers’ representatives in the coming period in order to ensure maximum consistency between the areas where workers are located and relevant specialities in host agencies. The aim is in May to issue invitations from host organisations. At the same time, the possibility of using the houses of Larymna and Agios Ioannis is extended until the process of disposal of the assets is completed.