Portuguese unions hold major anti-austerity strike

LISBON, Portugal (AP) ? A national 24-hour strike against austerity measures by Portuguese labor unions on Thursday brought public transport to a virtual standstill and depleted staffing levels at government offices, state-owned companies and public hospitals.

Most services operated by the national train company CP, the Lisbon subway and city bus companies ? all of them state-run ? were cancelled, forcing commuters to use their own vehicles and congesting traffic in the capital Lisbon and Porto, the second-largest city.

Airport management company ANA reported that 22 flights were cancelled by 10 a.m. (1000 GMT), 17 of them at Lisbon airport.

Some health centers around the country stayed shut, Portuguese media reported, while hospitals rescheduled operations and medical appointments. Few private companies reported walkouts, however.

The General Confederation of Portuguese Workers and the General Workers' Union, which together represent about 1 million workers in this country of 10.6 million people, want the center-right government to ease off its spending cuts and take more steps to create jobs and growth. Thursday's walkout was only their fourth joint protest in 25 years.

Public sector pay cuts and hikes in taxes on sales and private and corporate income have contributed to the economy's downward spiral, with the jobless rate growing to 17.8 percent and a third straight year of recession forecast in 2013.

But Portugal is locked into its deficit-reducing austerity program, which creditors demanded in return for a 78 billion euros ($102 billion) bailout two years ago.

Unions are angered by the government's latest plans, which include increasing the working time of state employees to 40 hours a week from 35; increasing their monthly pension deductions while lowering their pension entitlements; and laying off some 50,000 government workers out of the total of about 583,000.

The government made no immediate comment on the strike's turnout, though Prime Minister Pedro Passos Coelho told Parliament on Wednesday that Portugal "needs fewer strikes and more work and discipline."

The economic slowdown, with the bailout creditors predicting a contraction of 2.3 percent this year after the economy shrank 3.2 percent in 2012, has made it harder for the government to reduce its debt load.

The budget deficit stood at 6.4 percent of annual GDP in 2012 ? higher than the 5 percent target for that year though much lower than the 10.1 percent recorded in 2010.

Given the difficulties in generating growth, the bailout creditors ? Portugal's European partners and the International Monetary Fund ? have shifted the country's deficit target for this year to 5.5 percent from 4.5 percent.

At the same time, they have insisted that the government continue with its cost-cutting drive.

Source: http://news.yahoo.com/portuguese-unions-hold-major-anti-austerity-strike-105439422.html

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