Perilous Times
24 November 2011 Last updated at 00:08 ET
Portugal braces for general strike against austerity
cuts
Air traffic controllers were the first to go on strike, grounding
flights in and out of Portugal
A 24-hour strike in Portugal has grounded flights and halted
public transportation in protest against proposed austerity
measures.
Air traffic controllers and workers on Lisbon's metro system were
the first to go on strike late on Wednesday.
They are expected to be joined by hundreds of thousands of other
workers, including teachers and hospital staff.
Parliament votes next week on a deficit reduction plan imposed as
a result of an EU and IMF bailout.
The strike is expected to one of the biggest in Portugal's
history, where mass industrial action is rare.
The strike is being supported by the two main labour unions, which
represent more than a million workers.
Many Portuguese are shocked by the scale of austerity the budget
implies, says the BBC's Alison Roberts in Lisbon.
The government proposes spending cuts across a broad range of
public services, including health care and the armed forces, and
tax hikes.
Also planned is the elimination of Christmas and holiday bonuses
equal to about a month's pay for most public sector workers and
allowing private firms to extend the work day by 30 minutes
without overtime pay.
Under the terms of its 78bn euros ($105bn; £67bn) bailout,
Portugal's government must sharply reduce its deficit.
With the unemployment rate higher than 12% and the economy
forecast to contract next year, the conservative government of
Prime Minister Pedro Passos Coelho has said there is no choice but
to slash government spending.
"It is up to me to try to mobilise the Portuguese for action every
day to contribute to transform Portugal," he said.
Mr Coelho became prime minister in June after the socialist
government collapsed over the budget cuts. His governing coalition
has a majority in parliament so the final vote next week on the
2012 budget is expected to pass.
Portugal was the third country after Greece and the Irish Republic
to receive a bailout. Further instalments of the emergency loans
could be withheld if it does not meet targets for deficit
reduction.