GREECE: Workers stage 24 hour strike over fears of more austerity

Record ID: 340623

  • Title: GREECE: Workers stage 24 hour strike over fears of more austerity
  • Date: 18th January 2012
  • Summary: NEWSPAPERS HANGING ETHNOS NEWSPAPER HEADLINE READING (Greek): "Express Opening for 136 Closed Professions" VARIOUS OF KATHIMERINI NEWSPAPER HEADLINE READING (Greek): "Pressures And Blackmails For The Haircut"
  • Embargoed: 2nd February 2012 12:00
  • Keywords:
  • Location: Greece, Greece
  • Country: Greece
  • Topics: Politics
  • Reuters ID: LVA578T1D0D6M2H8TC9UQ6RETK3K
  • Story Text: Striking Greek workers brought the Athens subway to a standstill on Tuesday (January 17, 2012) and kept ferries docked to protest against further government austerity as the country's international lenders were to make a key visit to the country.
    EU, IMF and ECB officials were to start combing through Athens' books on Tuesday as part of efforts to put together a 130-billion-euro rescue package that Greece needs to stay afloat when a major bond redemption comes due in late March.
    Workers, suffering under the measures, fear more are to come to seal the second loan package, this time in the private sector as well.
    Ferries were disrupted from Athens' main ports, the subway was closed, and buses changed their schedules, as mostly private sector labour unions were stage rallies in the capital.
    The private sector labour unions in Athens, including subway workers, company and factory employees, teachers, lawyers and journalists held the 24 hour walkout as a warning to the government against further austerity measures, particularly in the private sector.
    "The people must come down in the streets, the workers, the unemployed, the pensioners to stop these policies. The troika is coming and along with the three party coalition government they will impose even more harsh measures," said striking teacher Grigoris Kalomiris.
    The unions belong to the main private sector umbrella union, The General Confederation of Greek Labour (GSEE) which is supporting their action.
    GSEE is to hold talks this week with trade federations as Prime Minister Lucas Papademos is pushing the two groups to agree on changes to private sector wage contracts to help boost the economy by making it more competitive.
    Options that are being floated include reducing bonuses, freezing wage rises, or reducing the minimum wage. The government may change legislation to make the changes itself if the two social partners cannot come to an agreement.
    But GSEE has said it will not discuss any of these options.
    Last week, Prime Minister Lucas Papademos said he would wait until the results of the meeting between the union and federations, expected mid-week, but left open the possibility that the government will use legislation to make changes to wages.
    The troika - international inspectors of the European Commission, International Monetary Fund, and European Central Bank, have said the private sector labour force must become more flexible to increase Greece's competitiveness. The troika's review plays a role in Greece receiving the additional financial aid, which it needs to keep from going bankrupt.
    The strike by workers on Tuesday was symbolically supported by the main civil servants union ADEDY. Some unions affiliated with the communist party also struck against the government's economic policy.
    Until now private sector wages have been untouched by the government's austerity measures - but jobs have been lost due to the recession brought on by the current measures and employers have already reduced wages individually.
    Civil servants jobs, wages and bonuses have been cut since 2010 when the government received its first rescue loan. Recession has deepened and unemployment has risen.
    Cash-strapped Athens is also in the midst of talks with creditors over a debt swap deal to reduce its debt as part of the new loan agreement. It is running out of time and needs an agreement with banks to avoid going bankrupt when 14.5 billion euros of bond redemptions fall due on March 20.
    But talks broke down on Friday over the interest rate on new bonds Greece will offer and a plan to enforce investor losses.
    Negotiations were suspended until Wednesday, and Athens sent senior officials to Washington to consult with the International Monetary Fund.
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