Greek labor tensions heightened Thursday, as a railway strike caused travel chaos and police and workers clashed outside the country's most revered archeological treasure, The Wall Street Journal reported.
The protest in the Greek capital represented yet another wave of dissent as the government tries to drag the country out of an unprecedented debt crisis and recession. It only narrowly avoided bankruptcy in May after agreeing to impose painful measures in exchange for a €110 billion ($153.53 billion) bailout from the International Monetary Fund and the European Union.
The cash-strapped Mediterranean country has made sweeping cuts in public-sector wages and pensions, severely reducing new hires in the civil service and refusing to renew temporary contracts. It has also raised indirect taxes, deepening the current recession and resulting in higher unemployment.
July unemployment figures came in at 12%, up from 11.6% in June and 9.6% in the year-earlier month. Nikos Magginas, an economist at the National Bank of Greece, forecasts that unemployment will top 14% by December. Unions predict there will be a million people out of work by year-end, corresponding to a 20% real jobless rate.
The temporary workers protesting at the Acropolis were angered by the coming dismissal of 320 employees whose contracts won't be renewed. The protesters also claim that about €5 million is owed to them in back pay for the last two years.
Meanwhile, railway workers walked off the job Thursday, causing widespread disruption for travelers that could spill over into Friday. The government has made state-controlled Hellenic Railways Organization, or OSE, which is €10.6 billion in debt and is slated for privatization, a focus of its plans to slash public spending. Read more.
