Union rejects all austerity measures and threatens strikes

RIGHT-WING union federation SEK yesterday threw down the gauntlet, threatening strikes against government plans to tackle the economic crisis.
SEK General Secretary Nicos Moyseos warned that the new package of measures announced by Finance Minister Charilaos Stavrakis last Friday would not be accepted by the union movement.
The package submitted to the EU last month includes measures to raise revenues while implement cost-cutting measures in the civil service, as well as clamping down on tax evasion.
SEK would not accept a freeze on civil service wages, as proposed by the government, but instead would call a pan-union meeting to discuss possible strike measures, said Moyseos.
In response, government spokesman Stefanos Stefanou said the government would not enter into dialogue with social partners on the basis of ultimatums.
Head of the Cyprus Chamber of Commerce and Industry (KEVE), Manthos Mavromatis, hit back saying where would the government find the extra €125m to pay for wage increases. The public sector could not act as if nothing was happening, and leave the private sector to bear the full brunt of the economic crisis, he added. 
In a press conference yesterday, Moyseos said the package of measures for economic recovery were “unfair on wage-earners and cannot be accepted”.
“From what’s been announced, it’s safe to say that the biggest burden of (economic) recovery is placed on the workers and specifically the wage-earning public.
“This is about government tactics and policies that leave unpunished the wealthy, natural and legal entities. The government is trying to cover part of the public deficit by shrinking an already wanting social policy, hitting large families benefits and student grants, the two basic pillars of social policy,” he added.
Moyseos argued that the large families benefit was introduced to replace a tax allowance that had been available in the previous tax system.
Wage-earners “already drink the most expensive milk in Europe, pay the highest interest rates, pay for costly transport due to the long-time absence of cheap public transport,” he said. 
SEK will call a pan-union meeting “aiming to mobilise forces to convince the government to rethink its announcement”, he added. 
By this, Moyseos spelt out that the union was talking about strike measures. “We have reached a stage where the workers need protection and need to show their strength to have that protection.”
KEVE’s Mavromatis commented on the union’s rejection of a pay freeze, saying: “KEVE does not doubt that the economic crisis has affected the private sector, both private employees and private companies. Unemployment in the private sector has effectively doubled in a year and profits for private companies have dropped by about 50 per cent compared to previous levels.
“The broader public sector cannot in such an economic crisis act as if nothing’s happening and not feel the need to participate and share the cost of this crisis.”
He added: “As things stand, the Cypriot economy must find an extra €125m to give to the public sector simply for wage increases and the Cost of Living Allowance, which are automatic. Where will they find this €125m?”
KEVE General Secretary Panayiotis Loizides warned: “If the union movement doesn’t show the maturity required by the times on the suspension of wage increases by two, three years, we will be forced to make large wage cuts, like Ireland and Greece did and like Portugal and Spain will do.”
On the issue of cuts to large families’ benefits, Stefanou said the government was simply following the same process taken with pension benefits by making it means-based.
He added that President Demetris Christofias planned to meet public employees’ union PASYDY soon after his return to Cyprus. 
“We are in consultation with PASYDY. We will soon have dialogue with PASYDY and soon I believe we will be in a position to say certain things on the issue.”
“We will not announce measures before discussing with our social partners,” he added.