Greek Company Registers Workers in Bulgaria to Cut Labor Costs

A Greek company is offering its employees fictitious registration in Bulgaria to pay them lower salaries.

Greek newspaper To Proto Thema argues in an article titled "Greeks (from Bulgaria) wanted to work in Larissa" (cited by the Bulgarian Telegraph Agency (BTA)) that the fraud scheme was used by a Larissa-based company operating in the sphere of supplies to the hospitality industry.

According to a tip-off given by the trade union of workers in the spheres of tourism and supplies, the scheme involves a Bulgaria-based recruitment agency through which the registered "immigrants" were hired in Greece.

As a result, the employees were insured at Bulgaria's National Social Security Institute.

Greek newspaper Ethnos comments that the case is indicative of the labor market situation in Greece.

Meanwhile, the Greek trade union operating in the sector cautions about decreasing salaries, a growth in uninsured labor, spates layoffs and unfair competition from unemployed from Eastern Europe undercutting wage levels.