GREECE: Workers at state-owned companies to be privatised under a new wave of measures to reduce the country's debt problems stage a 24-hour strike

Record ID: 339516

  • Title: GREECE: Workers at state-owned companies to be privatised under a new wave of measures to reduce the country's debt problems stage a 24-hour strike
  • Date: 10th June 2011
  • Summary: VARIOUS OF NATIONAL BANK CLOSED (NOT BEING PRIVATIZED) DUE TO STRIKE IN ORDER TO SUPPORT HELLENIC POST SAVINGS BANK VARIOUS OF HELLENIC TELECOMS ORGANIZATION (OTE) - TO BE PRIVATIZED - OFFICE CLOSED DUE TO STRIKE, UNION FLAGS HANGING FROM WINDOWS SIGN ON WALL OF OTE ANNOUNCING STRIKE VARIOUS OF SYNDAGMA SQUARE, WHERE VARIOUS BANNERS AND MESSAGES ARE HANGING ON THE SQUAR
  • Embargoed: 25th June 2011 13:00
  • Keywords:
  • Location: Greece, Greece
  • Country: Greece
  • Topics: Domestic Politics
  • Reuters ID: LVA6AFKZ9YH1CHWDU3DRNFWOQID8
  • Story Text: Train schedules were cancelled and public banks and utilities were closed on Thursday (June 9) around Greece as workers of state-owned firms to be sold off walked off the job.
    Greece has listed at least a dozen state companies that will be part of its privatization plan including water, telecoms and power utilities, ports, banks and airports.
    The European Union and IMF have been pressing Greece to conduct large-scale privatizations to raise funds for reducing its huge debt. This as the European Union and the International Monetary Fund are preparing a second bailout package for Greece to give the debt-ridden country more time to put its finances on a sustainable path.
    Cash-strapped Greece has pledged to raise 50 billion euros ($73.2 billion) from privatizations by 2015 and the pre-arranged OTE telecom sale is the first state asset to be shifted as part of the program.
    The Greek government exercised its option to sell a 10 percent stake in OTE for around 400 million euros ($585.7 million). Once the shares have been transferred, the Greek state will hold 10 percent plus one vote in OTE, with Deutsche Telekom owning 40 percent plus one vote.
    "This is a crime and they will see that whatever happens life goes in circles, they will see that at some point our battle will be justified, and the state companies will return to the hands of the Greek state. History has shown this, so despite the current situation we will continue to fight to achieve this goal," said General Secretary of the OTE employees union Antonis Birbilis.
    Hellenic Post Savings Bank (TT) the Public Power Corporation (DEH) and the Hellenic Railways (OSE) and the Water and Sewage Company (EYDAP) are also on the privatization list. Other state banks, such as National Bank, walked out on Thursday to show solidarity with Hellenic Post Savings Bank, which is to be sold.
    "If the water utility passes into private hands then the costs will escalate dramatically and the quality of the service will be questionable, just as it has happened in other European countries where this has been proven in the past, and now there there is a trend for water companies to return to the state from private companies." said President of the Water and Sewage Company (EYDAP) employees' union Vassilis Dimouris.
    The main public and private sector trade unions of Greece, GSEE and ADEDY, of which the state company unions belong, joined the employees protest on Thursday in support, and have called for a general strike for June 15.
    The actions come as nightly protests by thousands of ordinary Greeks have been taking place in front of the parliament building for the last two weeks. The same protesters have set up a camp at the main Syndagma Square in the capital filled with banners and messages, calling for the government to change its economic policy. The strike comes as the government was to meet on Thursday to finalize the economic plan which includes the privatizations, and send it to parliament for a vote.
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