Greek Taxidrivers Launch 48-Hour Strike Against Planned Reforms

By Shannon Liao
July 18, 2011

Greek taxidrivers started a 48-hour strike on Monday over the government’s recent decision to liberalize the industry. The strike is planned for 5 a.m. Monday to 5 a.m. Wednesday, local time, but the unions say they are prepared for longer strikes if the issue is not resolved.

Reversing a decision just last month to more strictly regulate taxi licenses, the new transport minister has decided to lift all restrictions on issuing taxi licenses to create more job openings as a way to soften the rigid labor market.

For taxidrivers, the change may mean more competition in an already tough market. There are currently 14,000 taxis in the capital city Athens alone, which represents about 4 taxis per 1,000 residents. Taxi fares in Greece are among the lowest in Europe.

The reforms announced last month would have reduced the number of licenses in the country. Under those rules, taxis in Athens would have dropped to 2.5 licenses per 1,000 residents and the average would have been 2 per 1,000 elsewhere in Greece.

However, after a Cabinet shuffle the new Transport Minister Yannis Ragoussis changed the plan.

The IMF has required Greece to enact a series of strict measures to try to stimulate the economy.

Poul Thomsen, head of the IMF’s team on Greece, explained in an IMF interview last week that the reform program is going to be tough for the Greek people but the program is a prerequisite for improving Greece’s economy.

“I think that the majority of people understand that the reforms are necessary to develop a more dynamic and competitive economy that creates jobs and new opportunities,” Thomsen said.

On July 8, the IMF approved a 3.2 billion euro (US$4.5 billion) disbursement for Greece, along with heightened expectations for progress, according to the IMF report. Greece will have to pass tens of billions of dollars in austerity measures to compensate.

Major traffic jams have been reported in Greece, particularly leaving the main airports and ports.

“We sincerely apologize to our passengers that we are not able to meet their transport needs,” read the statement issued Monday about the strike by Greece’s Taxi Drivers’ Union.

Source: The Epoch Times.
Link: http://www.theepochtimes.com/n2/world/greek-taxidrivers-launch-48-hour-strike-against-planned-reforms-59227.html.