Saturday, March 8, 2008

Greek unions plan fresh strikes over pension bill

Greek unions plan fresh strikes over pension bill

ATHENS, March 7 (Reuters) - Greek labour unions on Friday pledged fresh nationwide strikes next week to oppose a pension reform bill.

The conservative government, which has already seen months of protests over the planned changes, insists reforms are needed to save the ailing pension system from possible collapse in 15 years' time.

Both the public and private sector umbrella unions said they would join a three-hour work stoppage on Wednesday while several employee groups, including municipal and local council workers, said they will strike for the whole day.

Both umbrella unions have planned a 24-hour strike for March 19 as well.

"The measures in the bill are categorically rejected as unacceptable and destructive for social security," private sector umbrella union GSEE said in a statement. "Strike action will continue until this bill is withdrawn."

State power and telecommuncations employees, workers in factories and other large private enterprises, lawyers and many doctors will take part in Wednesday's strike, from 12-3 p.m. (1000-1300 GMT), although some medical staff will stay on duty.

Rail and bus transport will be disrupted and there may be disruptions to flights, depending on a decision the civil aviation authority is set to make on Monday.

Parliament will start debating the bill on Tuesday.

According to the draft presented on Thursday, working mothers and women in general will be most affected by changes, with increased pension age and in some cases reduced benefits.

Bank employees, including those at the Bank of Greece whose strike this week shut the Athens bourse down for three days, are planning a new 48-hour strike next week.

Power cuts, triggered by ongoing strikes at electricity utility Public Power Corp , have lefts large parts of Greece in the dark for several hours in recent days, forcing shops to close early and businesses to discard products.

More power cuts are scheduled for at least another six days, PPC union officials have said.

"I am getting rid of everything that needs to be refrigerated because with the two and three-hour daily power cuts I cannot sell these products," said Yannis Dimitriadis, who owns a small Athens corner shop. "If this goes on for a few more days then I will have a huge drop in my daily revenues."

Based on the bill, Greece will merge about 133 private sector pension funds into 13 main ones.

It will raise the overall retirement age for women, reduce opportunities for early retirement for working mothers, and also dissuade others seeking to leave early. The changes will start gradually from 2009.

Experts say actuarial deficits for pension funds could grow to 400 billion euros ($611.6 billion), about twice the country's GDP, if the social security system is left unchanged -- a serious fiscal threat.

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