ATHENS (MNI) – Greek workers in the public and private sectors went
on strike today in protest against measures announced by the government
to reform pensions, social security and the labor market.

The measures include sharp reductions in benefits, pensions and
salaries. They come on top of a package of other fiscal austerity
measures announced in May, which were aimed at reducing the country’s
massive public deficit and debt.

Just 24 hours before today’s strike, the Socialist government
announced its decision to push for a 3-year salary freeze in the private
sector, and said it would invoke special powers to circumvent Parliament
if dialogue with the social partners collapses. The aim is to align
salaries in the public and private sector in order to cut labor costs
and improve competitiveness of the ailing Greek economy.

The government argues that the changes are required by the
agreement Greece signed with the European Commission, the ECB and the
IMF in exchange for financial aid of up to 110 billion euros.

However, GSEE which is the largest private sector umbrella union
group, and ADEDY, the union federation for civil servants, argue that
the proposed changes in the labor market open the door for massive
layoffs. They say some of the changes would even be unconstitutional,
such as eliminating the right to arbitration in wrongful dismissal cases
and abolishing terms of collective bargaining agreements.

The unions say they are prepared to challenge the decisions in
Court.

The protestors also oppose plans to raise the retirement age to 65
from 60 for women in the public sector; to curtail early retirement; cut
the minimum pension; allow companies to fire more people every month
(from 2% to 5% of the workforce per month); to lower the minimum wage;
and to cut severance pay by 40%.

The legislative debate over these measures is scheduled to begin
in Parliament today. Although the government holds a 7-seat majority in
the 300 member house, Prime Minister George Papandreou has been lobbying
heavily to avoid defections.

It has been widely reported in the Greek press that Papandreou
even threatened members of his party with early elections if the
measures are not approved by everyone in the party. The debate is
expected to be heated, since until Monday evening there had been no
indication that the private sector would be affected by the measures.

The strike will leave state hospitals with only emergency staff on
duty. Schools, public services, tax offices and municipal offices will
be closed. Journalists will also participate in the strike: there will
be no news broadcasts throughout the day, and newspapers will not be
published on Wednesday.

There will also be no train service, while metro and bus lines will
operate only for a few hours in order to transport protesters to and
from the protest sites.

Around 100 domestic flights have been cancelled, but international
flights will not be affected. As regards ferry schedules to and from the
Greek islands, an Athens court ruled Monday that a strike announced by
the seamen’s union was illegal. However, a leftist party has said it
will block the ports to prevent ferries from sailing.

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