Slovenia public sector holds big strike over cuts Read more: http://www.kyivpost.com/news/world/detail/126189/#ixzz1sRulo57o

LJUBLJANA - Tens of thousands of teachers, doctors, police officers and other public workers went on strike on Wednesday in Slovenia over proposed pay cuts under austerity measures to rein in the euro-zone member's budget deficit.

The strike, which involves some 80,000 public sector workers and closed most schools and kindergartens across the country, is the largest in Slovenia since it declared independence from socialist Yugoslavia in 1991.

It was the latest sign of public unease across the euro zone over drastic spending cuts to tackle the sovereign debt crisis.

"The strike is a serious message to the government that we are determined to defend the social state and the acquired standards in education," Branimir Strukelj, head of the confederation of public sector trade unions, told Reuters.

The centre-right government of Prime Minister Janez Jansa, which took power in February, has warned the country that its economy is "on the edge" and that the budget deficit must be cut from 6.4 percent in 2011 to 3.5 percent this year.

Debt soared to 47.6 percent of gross domestic product (GDP) in 2011 from 21.9 percent in 2008 amid lower tax income and high government spending.

Public sector wages and benefits will bear the brunt of the belt-tightening. Parliament is due to begin debating the measures next week.

Jansa said his government would continue talks with the trade unions but that significant changes to its plan to cut public sector wages by some 7.5 percent from July would not be possible.

"The Slovenian economy is on the edge," he told state TV Slovenia on Tuesday. "Twelve thousand companies went bust in this crisis, we cannot put an additional burden on the private sector," he said.

"The strike will not solve anything, it will just increase our problems."

Union leader Strukelj said the unions might agree to pay cuts if the government backs down on plans to increase class sizes and working hours for teachers that would result in layoffs. The strike, which does not involve transport workers, is planned to last one day but unions say it could be extended.

RECESSION

The Alpine state was the euro zone's fastest growing economy in 2007 but was badly hit by the global crisis due to its dependence on exports.

The economy shrank by 8 percent in 2009. After a mild recovery in 2010, Slovenia re-entered recession in 2011 when gross domestic product (GDP) fell by 0.2 percent with a further fall of 0.9 percent expected in 2012 amid lower export demand and weak domestic spending.

Jansa said 120,000 jobs had been lost in the private sector over the past three years while the public sector had grown by 9,000 to some 160,000 in a country of 2 million people.

Unemployment soared to 12.4 percent in February from 7 percent at the end of 2008.

Jansa said the government was planning to take on new debt of at least 1 billion euros ($1.3 billion) this year to cover the deficit, of which 700 million euros will be spent on interest on debt acquired in the past.

According to the government, public sector employees on average enjoy 10 days more vacation each year and an average monthly wage 23 percent higher in January than those in the private sector.

"I don't support this strike," said 35-year old Katja Miler, who lost her private sector job as a carer for the handicapped last year.

"People in the public sector would not suffer too much if their wages were reduced a bit. They have enough privileges anyway," she said. ($1 = 0.7610 euros)

Read more: http://www.kyivpost.com/news/world/detail/126189/#ixzz1sRv0qrGU