Greece could be forced to a disorderly default in March if ongoing talks on further bailout loans by international creditors fail, Prime Minister Lucas Papademos warned on Wednesday.

"The next three months will be crucial. Without an agreement with European Union (EU)/International Monetary Fund (IMF) auditors on the terms of further financing, Greece faces the risk of disorderly default in March," Papademos said at the premiere of talks with social partners.

In mid-January, EU/IMF inspectors are expected back in Athens for a new review of Greek finances, amidst mounting pressure for speedier reforms to cut deficits in exchange for vital further aid.

The prime minister pushed for labor cost reduction in the private sector to boost competitiveness of the debt-ridden economy.

Following a wave of dramatic wage cuts at the public sector over the past two years and tax hikes that have fuelled recession, the focus now shifts to the private sector with suggestions for a reduction of the minimum wage and the review of the 13th and 14th holiday bonus salaries, according to a letter addressed to Labor Minister Yorgos Koutroumanis.

In a marathon round of deliberations with Papademos throughout Wednesday, labor union leaders reiterated that low-income employees can not bear further burdens, arguing that the minimum monthly wage of 750 euros (about 971 U.S. dollars) is already too low in comparison with the living cost.

Representatives of employer federations supported the employees' argument. They called for a freeze on wages for the next three years and a reduction of costs not related to salaries, such as social insurance contributions.

Despite different views on the ways to achieve the goal, all sides agreed on the need to make the Greek economy more competitive through structural reforms to overcome the threatening debt crisis.

The auditors' progress report and a final agreement on the voluntary 50-percent write-down of the Greek debt owned by private sector bondholders as part of the Oct. 27 eurozone summit deal on a second rescue package for Greece are key to the further release of aid to Athens.

Greece has depended on EU/IMF bailout loans since May 2010 to avert a bankruptcy that could rock the entire European common currency zone.