Greece: Unions to Strike, Anger Over Bailout Terms

Some of Greece's unions and business federations are preparing to strike over the bailout agreement the government is rushing to close with the European Union and International Monetary Fund inspectors.

 

They say the agreement - which includes wage cost cuts - will further harm the economy.

 

The General Confederation of Labour (GSEE), representing private sector workers, and the Confederation of Civil Servants representing Greece's civil servants, will go on a 24-hour strike on Tuesday.

 

They will also be joined by one of the business federations.

 

[Stathis Anestis, Spokesperson, GSEE]:

"The way they are proceeding is blackmail and unacceptable, they are demanding that the entire framework of the labor agreement be cancelled, which has existed here and in the whole of Europe for the last 100 years." 

           

Business federations, which represent the country's employers, criticized the government for showing weakness towards the Troika.              

 

[Vassilis Korkidis, President, National Confederation of Greek Commerce]:

"We don't know how to react, we could take the decision to strike, but in the business sector consumers are already on a permanent strike." 

 

[George Kavathas, VP Gen. Confederation of Craftsmen and Merchants]:         

 "It will lead to the poverty of Greek citizens, it is suicide, it will cause insurance funds to collapse, the economy to collapse, and to the increase of unemployment, the closure of businesses, and the loss of more jobs."

 

Greek Prime Minister Lucas Papademos says that party chiefs in his coalition government have agreed to measures including wage cuts and other reforms as part of spending cuts worth 1.5 percent of gross domestic product. 

 

The troika has demanded cuts to the minimum wage or holiday bonuses, or both.              

 

Greece must close the terms for a new EU/IMF bailout in the next days, as German Chancellor Angela Merkel made clear that Europe's patience is running out.

 

Failure to strike a deal to secure the 130 billion euro rescue loan risks pushing Athens into a chaotic debt default which can threaten its future in the euro zone.