Workers threaten strikes against Greek fiscal plan

Greek labour unions are threatening to strike next month against a plan prescribed by the European Union to cut pay and hike taxes, piling pressure on the socialist government.

The ADEDY public sector white-collar union and the GSEE state and private sector confederation said they would stage a nationwide strike in early February to protest a plan that will mean a 3-4 percent salary reduction for civil servants and tax hikes for most Greeks.

"If the plan proves to be an adoption of the monetarist, neo-liberal views of the Brussels bureaucrats, we will react, starting with a strike in the first 10 days of February," said GSEE spokesman Stathis Anestis.

The socialist government that came to power in October promising to tax the rich and help the poor, has no choice but to opt for austerity after revealing that the defeated conservatives under-reported deficits, prompting turbulence on Greek markets and EU calls for urgent measures.

The socialists promised to cut the budget deficit to below the EU's limit of 3 percent of gross domestic product by 2012 from 12.7 in 2009. Forced to borrow to plug budget holes, Greece is set to become the euro zone's most endebted member this year.

An EU inspection team was in Athens from Jan. 6 to 8 to look at a tough deficit cutting programme that will be submitted to Brussels at the end of January. Government officials said on Jan. 7 the team had asked for more details.

The government has so far announced a series of measures, including a 10 percent cut in supplemental public sector wages -- extra monthly pay that is not part of basic salary -- as well as a public sector hiring freeze and a 10 percent reduction in social security expenditure this year.

"Many critical points remain unclear but we estimate that from the cut of supplemental salary allowances we will have a reduction of 3-4 percent in public sector wages," said Spyros Papaspyros, president of ADEDY. "With some of the tax law changes, some categories may suffer a reduction of over 10 percent.".

Greeks, fed up with chronic corruption in the EU's weakest member, appeared ready to take to the streets if the EU's bitter medicine was not distributed fairly.

Others said measures were necessary and they would accept them, provided the pain was spread evenly.

"There are people working nightshifts, weekends and overtime and get a total of 1,300 euros and others in ministries get twice as much for doing nothing. These are the people that should be affected," said Yannis Bastoyannis, 54, who works as a night guard in the public sector.