ARGENTINA-STRIKE/TRANSPORT Argentine workers walk out in general strike over taxes

Record ID: 341994

  • Title: ARGENTINA-STRIKE/TRANSPORT Argentine workers walk out in general strike over taxes
  • Date: 31st March 2015
  • Summary: BUENOS AIRES, ARGENTINA (MARCH 31, 2015) (REUTERS) EMPTY BUS LANE VARIOUS OF BANNER ON STREET THAT READS: "DAMNED TAX, GENERAL STRIKE, MARCH 31, 2015" VARIOUS OF PLANES AT AEROPARQUE JORGE NEWBURY, BUENOS AIRES'S DOMESTIC AIRPORT EMPTY AIRPORT TERMINAL DEPARTURE BOARD, SHOWING THAT ALL FLIGHTS WERE CANCELLED VARIOUS OF WORKER AT EMPTY AIRLINE COUNTER EMPTY BUS STATION SIGN THAT SAYS TICKET SALE OFFICES ARE CLOSED PERSON WALKING IN STATION
  • Embargoed: 15th April 2015 13:00
  • Keywords:
  • Location: Argentina
  • Country: Argentina
  • Topics: General
  • Reuters ID: LVABUO24RUSTDAL2DX5B3BSYWHHH
  • Story Text: Argentina's public transport networks ground to a halt, port workers in the grains export hub of Rosario downed tools and banks shuttered their doors on Tuesday (March 31) in a general strike over demands for changes to income tax.
    Traffic was light during Buenos Aires' morning rush-hour. Train, subway and bus services ground to a halt. An online departure board for Aeroparque Jorge Newbury, the capital's main domestic airport, showed all flights were cancelled.
    The prospect of further labour disputes as unions knuckle down to wage negotiations is another headache for President Cristina Fernandez, who is battling to revive a stagnant economy and avoid the government's latest debt default deepening.
    Transport unions spearheading Tuesday's strike are demanding the leftist government raise the minimum threshold on income tax as part of salary negotiations. The government said inflation was 24 percent in 2014, but private economists estimate it was about 35 percent.
    Cabinet Chief Anibal Fernandez, who is no relation of the president, said on Tuesday that only 7 to 8 percent of workers from the key UTA transport union paid income tax and that union bosses were holding workers hostage by stopping them from getting to work.
    "A vision is presented as if it were a fact of politics. It harms many people who want to continue working, 95 percent of people would've worked, I have no doubt. Of course they cannot go in (to work), they can't," Fernandez told reporters in a daily briefing.
    Argentina's unions complain that more workers pay tax if double-digit salary hikes designed to keep pace with inflation are awarded without lifting the lowest tax bracket threshold.
    Sergio Palazzo, general secretary of the Bank Employees Union, said bank workers were among the most affected.
    "There is a total stop in activities. There are no financial institutions operating in the country, since bank workers are some of the most affected by this labour tax, labelled income tax," Palazzo said.
    Nestor Pitrola, Argentine trade unionist and leading member of the Workers' Party (Partido Obrero) of Argentina, said the strike has been "massive."
    "The strike has been the largest the Kirchner government has had for 12 years and this refutes the idea that it is only because of income tax. The strike has been massive on the six subway lines, as was anticipated by the Workers' party. It has been massive in the metal industry, with Calo (metal workers' union boss Antonio Calo) who did not agree with the strike (but gave option to workers to strike, if they wished). In other words, this has been a rebellion by the workers in the official unions," he said.
    Buenos Aires resident, Fernando, said the strike prevented him from simply going to work.
    "It was bad, it was bad. If you don't work, you are not paid and you lose everything. And we'll have to see if it (the strike) is lifted to be able to go into work," said Fernandez.
    Tourist, Luis Bringa, said he had opted to just stay indoors.
    "We are on holiday and we sort of went out. We knew (this was going to happen) yesterday. We went out and there are no buses to anywhere, everything is closed, you can't do anything. We 're going back to the hotel to drink mate and watch TV because there is not much else to do," Bringa said.
    With a presidential election looming in October, Fernandez will want to avoid a wave of politically damaging protests that might hurt the future ruling party nominee.
    Government insiders have expressed concern the unions sympathetic to the opposition will intensify their demands and strike actions in the months ahead.
    One source familiar with Fernandez's thinking said earlier this month that the government was considering altering the lowest tax bracket. But over the weekend Economy Minister Axel Kicillof said no changes were planned.
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