Big labor groups in Greece are up against the proposal of Prime Minister George Papandreou's government to place some 30,000 state workers in a special labor reserve force with lower wages as part of its austerity measures to reduce the nation's budget deficit.

This "reserve concept", which will be implemented without delay, is expected to generate 300 million euro in cost savings for 2012 and abolish some 100,000 public sector jobs within the next 4 years.

Bloomberg reported that the Greek government has given its nod to austerity procedures worth more than 6 billion euro to prove that it can cut back the budget shortfall and obtain payment for a pending financial assistance and a second bailout fund.

The unpopular labor reserve strategy is perceived by various unions as a result of the mounting internal dissension within the ruling Socialist party and the escalating resistance to the austerity measures.

The government is supposedly getting help from the European Commission and experts from the Organization for Economic Cooperation and Development to determine excess laborers from the public sector, according to reports from the Wall Street Journal.

Greek finance ministry officials view the austerity action as a means of bringing down the current shortage to about 6.8 percent of the gross domestic product or 14.7 billion euro from the previous 8.5 percent GDP during the previous year.

The figure corresponds to more than the variance of 6.5 percent for the following year and 7.6 percent for 2011 that has been agreed upon by the government with the EU, IMF and ECB in acquiring emergency loans.

The country's labor sector has been beset by a string of work industrial actions during the past weeks by workers from different professions.

A nationwide general strike is due on Oct. 5 while the biggest labor confederations have announced mass protest actions on Oct. 19.

The austerity measures were approved by the Cabinet just before the meeting of Euro zone finance ministers in Luxembourg today to evaluate the menace of a Greek default, protect banks from possible consequences and deliberate on another bailout package.

Over the weekend, Greece completed negotiations with inspectors from the troika which is to decide whether to provide the country with more financial aid.