Argentine workers strike to protest cutbacks

July 20, 2001 Posted: 11:02 AM EDT (1502 GMT)

BUENOS AIRES, Argentina (AP) -- In one of the largest strikes in years, state workers paralyzed much of Argentina in an outpouring of disgust over a government austerity plan calling for salary cuts and pension reductions.

The strike by three of the country's largest labor unions was the seventh since President Fernando De la Rua took office 19 months ago, and it was a rare show of unity by Argentina's powerful labor movement.

In major cities and throughout the countryside, workers brought much of the country to a standstill, shutting down public transport and offices and leaving trash to pile up on streets.

"This was the people's response to a plan that falls most on retirees, on families with fixed incomes -- and we will not stand for it," said Hugo Moyano, the leader of the 2-million-strong General Workers Confederation, who urged De la Rua to reconsider his austerity plan.

"If he wants those with less to pay for this plan, we will continue to stand up against this decision," he said.

Union leaders called the protest over government plans to slash spending by 13 percent in a move to balance the budget by year's end. The move, which is to include state worker salaries and pension cuts, also is intended to inspire confidence on international markets that were rattled last week by the crisis in South America's second-largest economy.

Hours after the strike began, there was more bad news for De la Rua's beleaguered government. The Economy Ministry announced unemployment had edged up from 15 percent in October to 16.4 percent -- the highest rate in almost five years.

With the nation in the grips of a three-year recession, saddled with $130 billion in public debt, more than 10 million Argentines have been pushed into poverty, government statistics show. Crime and homelessness has skyrocketed.

There were no reports of injuries or arrests during the 24-hour strike -- the biggest since hundreds of thousands of workers walked off the job November 23 over government belt-tightening measures.

In some cities, workers blockaded highways, hampering movement as hundreds of thousands of workers stayed off the job. Most public buses and commuter trains failed to run, and government offices sat empty.

"No to economic austerity," young protesters shouted as they lit firecrackers outside the nation's stock exchange. Workers set tires ablaze while black smoke curled overhead before firefighters doused the flames. The group dispersed as riot police, backed by a water cannon truck, approached.

Economy Minister Domingo Cavallo found himself the target of one protest, as demonstrators descended on his house in an upscale neighborhood in Buenos Aires.

The deficit-cutting measures largely have been welcomed by international investors who worry that Argentina will default on its debt payments. The government this week reached an accord with opposition lawmakers to assure foreign investors it will be able to make the payments.

Nevertheless, Argentines are growing weary of being called on to make sacrifices. The latest austerity plan follows several tax increases and similar cost-cutting plans over the last year.

Strike organizers at the powerful General Workers Confederation claimed success from what they called a peaceful show of popular opposition to government austerity moves. Union leader Rodolfo Daer said more than 70 percent of workers stayed away.

Copyright 2001 The Associated Press.

http://www.cnn.com/2001/WORLD/americas/07/20/argentina.strike.ap/index.html

-- Martin Thompson (mthom1927@aol.com), July 20, 2001