Bloomberg: Argentine Unions Strike Against Govt Economic Policy

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11/23 12:49
Argentine Unions Strike Against Govt Economic Policy (Update2)
By Helen Murphy


Buenos Aires, Nov. 23 (Bloomberg) -- Demonstrators blocked bridges and roads 
across Argentina as the nation's militant labor unions led a 36-hour strike 
to protest the government's failure to end a two-year recession and reduce 
unemployment. 

Hard-line unions, headed by militant truckers' leader Hugo Moyano, set up 
roadblocks in Buenos Aires and other parts of the country to disrupt 
transport. Shortly after the midday start to the protest, there was little 
traffic on the normally congested streets of central Buenos Aires. Few buses 
were circulating. 

``There's so much hunger and so much misery in this country and no way of 
improving with this government,'' Moyano told a throng of drum-banging 
supporters in Congress Plaza. ``If there's no change, I assure you, there 
will be more struggle.'' 

The unions oppose recent plans by President Fernando de la Rua to cut 
spending and change the pension and health-care systems, measures that may 
lead to reduced salaries, increase the 15.4 percent unemployment rate and cut 
worker benefits. The unions are demanding fresh measures to stimulate the 
struggling economy and create new jobs. 

The spending cuts are part of 11-month old government's efforts to reduce the 
budget deficit, a key to negotiations with the International Monetary Fund 
and other lenders to obtain an emergency credit line. The facility, which 
some analysts say could be of as much as $25 billion, would help Latin 
America's biggest borrower meet payments on its $123.5 billion debt. 

``This is the most important strike in the last 15 years.'' said political 
analyst Rosendo Fraga. 

The strike will widen tomorrow when it will be joined by the General Labor 
Confederation, which groups most of Argentina's labor unions. Strike leaders 
said the protests will disrupt bus, train and air transport services across 
the country. Authorities haven't provided figures on how much support the 
strike has. 

``We just can't go on like this any more,'' said Jose Martinez, a former 
textile worker and father of four, on his way Congress Plaza. ``My children 
are suffering because I can't find work, and this government isn't doing 
anything to help me.'' 

`People Are Afraid' 

The government said there could be violence and other forms of intimidation 
against those who don't join the strike. 

``People are afraid,'' said Labor Minister Patricia Bullrich. ``But any acts 
of violence against workers will be treated as illegal. To prevent the right 
to work is totally criminal.'' 

In Buenos Aires, demonstrators burned tires and closed roads and a number of 
highways, including the main drag into the city, according to television 
station Todo Noticias. 

Few traders made it to the Buenos Aires Stock Exchange, where the select 
Merval Index opened unchanged in light trading. Officials barred the doors to 
the bolsa to protect the building from protesters and said they were unsure 
whether trading would open tomorrow. 

``There's no trading going on, no prices, nothing,'' said Daniel Vogado, a 
trader at Banco Velox. ``We'll all be digesting the impact of this strike 
over the weekend.'' 

This is the second nationwide strike involving all the major unions since de 
la Rua took office in December and may cost the country $800 million from 
lost production, said Ricardo Ostuni, de la Rua's spokesman. More than 100 
buses were burned yesterday in an effort by activists to intimidate bus 
companies, which, in the past, haven't supported strikes, according to 
Bullrich. 

``Moyano has been trying to cause trouble for the government from the first 
day,'' Economy Minister Jose Luis Machinea told local Radio Continental. 
``There's an attitude of intimidation, of bullying, that's preventing people 
not going to work without being able to decide for themselves.'' 

The protest precedes the likely arrival this weekend of an International 
Monetary Fund mission to discuss whether the government's latest plans to cut 
spending and reduce some taxes meet conditions for a new credit line. 

Moyano has criticized the IMF's interference in economic policy and blames 
the fund for forcing the government to take austerity measures in exchange 
for the credit line. 

The latest government measures include a five-year freeze on federal, 
provincial and municipal spending to eliminate the budget deficit by 2005, 
the phasing out of the state pension system, and a program to allow private 
companies to compete with state and union-run health-care systems. 

Unions oppose proposed changes that would increase competition within the 
health system and curb their control over workers' health-care plans, their 
main source of income.