Vol. 73/No. 17      May 4, 2009

The General Confederation of Workers of Greece and ADEDY, the public-sector labor federation, called a 24-hour general strike to protest government austerity measures, cuts in public spending, and rising unemployment, now at 9 percent officially.

Some 700 members of the Union of Workers at United Textiles (UWUT) have set up a camp across from the Ministry of Economy, where they have been staying in shifts of about 100 workers at a time.

Maria Kouvatli, a machine operator, told the Militant, “I started work at the company mill when I was 15 years old. Now I am 45 and they are saying that they will shut down the mills. Who’s going to hire me at this age? We’ve been here for a week already to say to the government that this cannot be allowed to happen.”

“There is a general crisis in the textile industry in the country,” added Ilias Harisis, president of the UWUT local in Naoussa in northern Greece. The country’s textile production has dropped by 22 percent from a year ago. According to Harisis, unemployment has reached 52 percent in Naoussa, a major center for textiles and canning.

United Textiles’ owners say they cannot continue to operate because the banks have cut their credit line. Harisis said the workers have been without pay for six months, with 1,200 of them facing unemployment.

“We think that the company is capable of staying in business. It has had big customers such as Benetton and Sisley in the past,” Harisis said. The workers are demanding the government extend a credit line of 35 million euros (1 euro = US$1.32) to United Textiles so production can continue.

“Six months without pay and yet we are also not eligible for unemployment benefits since we are employed,” said Kouvatli. “How are we to live?”

In a show of solidarity, other textile unions are covering hotel bills for workers taking part in the encampment near the ministry building. Their meals are provided free at Bank of Greece employee cafeterias.

The crisis in textile is part of an overall contraction of 12.6 percent in manufacturing in Greece. Metals production is down 28.9 percent. Commodity shipping rates are down 92 percent. Agricultural commodity prices are down substantially as well—cotton by 48 percent, olive oil by 40 percent, and dairy products by 15 percent. Overall exports by Greece are down 22 percent.

Over the past decade, Greece’s major banks have invested some 55 billion euros in the Balkans, acquiring a significant percentage of those countries’ credit.
 
 
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