GREECE: Athens at a standstill after workers hold nationwide strike over government economic reforms

Record ID: 341403

  • Title: GREECE: Athens at a standstill after workers hold nationwide strike over government economic reforms
  • Date: 16th March 2006
  • Summary: BANK CLOSED WITH STRIKE POSTERS ON ENTRANCE (2 SHOTS)
  • Embargoed: 31st March 2006 13:00
  • Keywords:
  • Location: Greece
  • Country: Greece
  • Topics: Economic News,Domestic Politics
  • Reuters ID: LVASIBZ3D75IVKMO1YPTRGB4BIV
  • Story Text: The ongoing war between labour unions and the government continued on Wednesday (March 15) as a 24-hour strike affected public services and transport, when thousands of workers stayed away from their jobs.
    Trains, subways, ships, trolleys and trams were all halted, causing long snaking lines of congested traffic throughout the capital and stranding scores of people at bus stops where one local bus route per destination was operating as a skeleton measure.
    Greece's national carrier Olympic Airlines was operating only one flight per destination, but airport officials said no major problems were reported. Most people had heard about the strike and made other plans.
    Schools, daycares, public services such as the water, telephone and electricity companies, as well as government offices and banks closed their doors. Hospitals kept only emergency staff in place.
    Outraged over government economic reforms to trim the country's budget deficit and liberalize the Greek labour market, unions have been at war with the ruling New Democracy party for months over low wage increases, pension cuts and other changes to the social insurance system and labour practices in both the public and private sectors.
    Thousands of strikers from various labour groups flooded Athens streets in a protest march amidst the drizzling rain which unions said attracted some 30,000 people.
    Rising daily strike actions or protests have affected the Greek public with the disruption of services since the beginning of the year, and unions are vowing to continue until the government sits down for talks on policies they say are hurting the workforce.
    The government measures have affected the ruling party's popularity as recent opinion polls show the opposition party meeting support numbers. The New Democracy Party won the elections in 2004 with about a five point lead.
    Greece is determined to rein in public spending, under pressure to reduce its budget deficit or face sanctions by the European Union.
    Government officials say current labour practices are hindering investment and competitiveness in the country, which can eventually help alleviate unemployment, one of Greeks' major concerns at about 10 percent of the population.
    But unions say the measures favour big business and are increasing unemployment and creating poverty.
    ''The government and businesses have to focus on the problem of unemployment in our society and find a solution to it," said one striker.
    Since the inception of the Euro currency in Greece in 2001 the public has seen rising prices and an erosion of their spending power, without significant increases in pay - out of line with other European Union countries.
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