Greek Deputy Employment Minister Yiannis Koutsoukos has resigned over drastic new austerity measures agreed by the coalition government, AMNA reported.

In a letter to the government, the 59-year-old former trade union leader said he would not support the "painful" measures that would hurt working Greeks. He did not say whether he would back the new austerity reforms in parliament.

Koutsoukos is the first casualty in Prime Minister Lucas Papademos' three-month-old coalition government, and walkout is a major sign of trouble in the majority Socialist party which has traditionally strong links with unions.

Koutsoukos is a former leader of the civil servants union ADEDY, which is planning various protests and rallies outside parliament at the weekend, when the new austerity program is set to be voted.

Pasok MP Christos Protopapas, a former deputy employment minister and leader of the GSEE union, also announced that he would not vote for provisions to slash the minimum wage.