In a package of interventions for the final settlement of the outstanding issues related to LARCO, based on 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 – the co-competent ministries have concluded of National Economy and Finance, Environment and Energy and Workas announced.

The package of these interventions also includes measures to cover the workers temporarily based on corresponding measures that had been taken in other companies (e.g. Skaramanga shipyards).

It is recalled that LARCO was placed under Special Management at the beginning of 2020 while it had long ago reached a financial impasse (the debts to PPC alone exceeded 350 million euros) and stopped operating for several months. During this period (from 2020) the employees’ payroll is covered by the State with an expenditure that has so far exceeded 100 million euros. It is also recalled that the Greek State has been condemned by the European Court for illegal state aid to the company.

The tender for the sale of LARCO’s assets was completed in 2023 but since then an appeal by one of the participants to the Council of State is pending. The government’s goal, immediately after the Court’s decision is issued, is the immediate completion of the transfer to the highest bidder.

Yesterday, a meeting was held between representatives of the three co-competent ministries and the workers’ unions. The meeting was attended by the Deputy Minister of National Economy and Finance Athanasios Petralias, the General Secretary of Labor Relations Anna Stratinaki and a representative of the Ministry of Environment and Energy.

The measures taken by the government are as follows:

1. The operation of LARCO in the form it has taken until now is officially suspended, until the legal problems are overcome and an agreement is signed with the investor.

2. Correspondingly, the coverage of the employees who received a salary without the business operating is interrupted. At the same time, a reasonable transition period is given until May 12 with fixed-term employment contracts, in order to allow all sides (government, special management, employees) the necessary adjustment period.

3. In the next few days, the issuance of the Joint Ministerial Decision will proceed with which a special employment program for LARCO employees will be activated in host agencies through the Public Employment Service.

4. The Program will last up to two years for those up to 55 years old and up to seven years for those over 55 years old, with a gross monthly fee of 1,210 euros gross or 1,000 euros net. Acceptance bodies include Regions, Municipalities, Health Centers, DYPA and e-EFKA, in areas as close as possible to the employees’ homes.

5. The aim of the program for workers over 55 is to fulfill the necessary conditions for retirement. Accordingly, the aim of the program for workers under 55 years of age is their transitional coverage until they find employment through the new LARCO investor or elsewhere.

6. The Ministry of Labor and DYPA will be in close consultation with the representatives of the workers in the next period in order to ensure the maximum possible coherence between the areas where the workers are located and related specialties in the host institutions. The purpose is to issue the invitations by the hosting bodies within May.

7. At the same time, the possibility of using the Larymna and Agios Ioannis residences is extended, until the completion of the disposal process of the assets.