PORTUGAL: Unions plan to bring country to a standstill with one day general strike

Record ID: 339636

  • Title: PORTUGAL: Unions plan to bring country to a standstill with one day general strike
  • Date: 24th November 2010
  • Summary: LISBON, PORTUGAL (NOVEMBER 22, 2010) (REUTERS) PEOPLE WALKING IN DOWNTOWN LISBON BANNER ANNOUNCING GENERAL STRIKE (GREVE GERAL) ON NOVEMBER 24 PEOPLE WALKING PAST BANNER BANNER ANNOUNCING GENERAL STRIKE VARIOUS OF STREET WITH GENERAL STRIKE BANNERS (SOUNDBITE) (Portuguese) GRACIETE CRUZ, CGTP INTERNATIONAL RELATIONS, SAYING "The workers, the men and women, will certa
  • Embargoed: 9th December 2010 12:00
  • Keywords:
  • Location: Portugal, Portugal
  • Country: Portugal
  • Topics: Domestic Politics
  • Reuters ID: LVADXEKV6WMJDKLJFPAUVOO6E4BU
  • Story Text: Red banners were posted all over downtown Lisbon as the country prepares to shut down for one day on Wednesday (November 24).
    The general strike, called by both of the country's main umbrella unions, is a response to a raft of austerity measures which plan to cut wages for civil servants by 5 percent and freeze pensions. These are all part of the government's 2011 budget plan.
    "The workers, the men and women, will certainly flight against it because we cannot accept that kind of policy which is the policy that has been followed ever since. Always, it has always been the workers paying for a crisis form which they are not resposible for," Graciete Cruz, who works for the main union CGTP's internationl relations, told Reuters.
    Supprorting the Portuguese labour union's call for a general strike is the EU's European Trade Union Confederation (ETUC) which blames bond markets and speculation for the Europe's bleak economic forecast and a dark period for the region's workers.
    "It´s a reminder that the bond markets can´t just rule the world. That the people have got a point of view and the people will protest and stick up for their rights. We see in this year as a period where all the post-world period of growth and improvements could be going into reverse in quite a lot of countries. And if that's the case, expect people to protest, demonstrate, strike and so on," said John Monks of ETUC.
    The Portuguese strike, for which no major rallies have been scheduled, will be the first in more than two decades to involve both the country's main umbrella unions, including the UGT group that is normally close to the Socialists.
    Many economists see Portugal as the next likely peripheral euro zone country to need a bailout, after Greece and Ireland, to resolve concerns over its debt burden.
    Portugal's budget deficit and debts are much lower than in Ireland and the euro zone's first bailout beneficiary, Greece.
    But economists doubt whether Ireland's rescue this past weekend would stop markets targeting fellow laggard Portugal, or prevent heavily indebted EU states defaulting in the longer run.
    "We have to grow more than the other European countries. We have to save more and we have to have gains in our productivity. That´s the way to step out. This plans is not enough. We have to go deeper into these measures," said Joao Pereira Leite, head of investment for Portugal's Banco Carregosa.
    In Greece, another debt-stricken euro zone country, unions have staged repeated strikes this year but turnout at rallies started waning after the summer, as the government pressed ahead with unpopular reforms.
    In France, massive strikes failed to prevent the government passing legislation to raise the retirement age.
    The Portuguese strike will happen just two days before the final vote in parliament on the budget bill, which is expected to pass after the main opposition party, the centre-right Social Democrats, vowed to allow its passage Although the public is sympathetic with those calling for the strike, some people say the austerity measures are a necessary evil, and a strike can do more harm than good.
    "This strike is a negative vote to the government but I think, at the moment, this country cannot afford to have more strikes," said Lisbon resident Carlos Vaz.
    An approved budget is seen as crucial to soothing investor concerns about Portugal's public finances after borrowing costs spiked this year, raising the spectre of a bailout that could impose further, painful belt-tightening.
    The labour action, in which organisers plan to halt public transport, most health services and schools, leaves open the question of whether the private sector will walk out en masse to affect other services like banking as well as industry.
    Despite the strike, the government says it expects minimum services in all key areas to be maintained on Wednesday.
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