GREECE: Workers strike over bank break up

Record ID: 341060

  • Title: GREECE: Workers strike over bank break up
  • Date: 16th January 2013
  • Summary: ATHENS, GREECE (JANUARY 16, 2013) (REUTERS) VARIOUS OF STRIKING BANK EMPLOYEES FROM VARIOUS BANKS MARCHING IN DEMONSTRATION VARIOUS OF BANK EMPLOYEES FROM HELLENIC POSTBANK MARCHING, WAVING ORANGE FLAGS OF THEIR UNION VARIOUS OF REPRESENTATIVES OF THE GREEK BANK WORKERS UNION LEADING THE PROTEST WITH A BLACK BANNER READING: (Greek) "They are selling the bank of the people"
  • Embargoed: 31st January 2013 12:00
  • Keywords:
  • Location: Greece
  • Country: Greece
  • Topics: Economy
  • Reuters ID: LVACTG0J1N2LR6J8R41Q1BDR8JR3
  • Story Text: Bank employees strike over government plans to dismantle a state bank as part of its reform of the banking sector.


    The Greek Bank Workers Union, representing the country's bank employees, called a strike on Wednesday (January 16) over government plans for state run Hellenic Postbank to be split up, as part of plans to restructure the banking sector.
    Bank employees walked off the job to join employees of Hellenic Postbank in a demonstration outside the Finance Ministry in Athens. Several banks remained open.
    Hellenic Postbank branches were closed as the workers launched a 48 hour strike.
    Greece will decide this week on how to wind down troubled Hellenic Postbank, which the government has said is not viable.
    Efforts at finding a buyer failed after three of the country's biggest banks withdrew from the race, leaving authorities no choice but to split the bank in two and run its healthy assets as a stand-alone entity. The bank's non-viable assets are expected to be liquidated, causing fears of hundreds of job losses, say employees.
    "We believe that this battle concerns all bank employees, because if the developments for Hellenic Postbank are negative then certainly in light of the mergers and sell-offs in the banking sector in our country there will be similar developments at the other banks," said Stavros Koukos, the president of the Greek Bank Workers Union.
    "We are not fighting just for our jobs, we are fighting for all of society, all the people, all the banking sector; this needs to be understood," said Panagiota Yiota, a bank employee and a representative.
    The struggle to sell Postbank highlights the challenges Athens faces in restructuring its banks and restoring their solvency, which is key to regaining access to lending markets and attracting deposits that will help revive a slumping economy.
    Unemployment in Greece has risen to almost 27 percent since measures were introduced to reform Greece's economy.
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