Austrians In Mass Walkout Tuesday To Protest Pension Cuts

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Austrians In Mass Walkout Tuesday To Protest Pension Cuts

DOW JONES NEWSWIRES

June 2, 2003

VIENNA - Austria is bracing itself for a second wave of crippling strikes within a month Tuesday in protest at government plans to save more than EUR2 billion over the next four years by slashing state pensions.

The strike call came after talks between the government and the 1.4 million-member Austrian Trade Union Federation, or OeGB, broke down.

A similar mass strike hit the country on May 6 after the Cabinet approved a draft pension reform law which will be submitted to Parliament on June 6.

Like many European countries, Austria's state system is burdened by an aging population.

The unions are asking the government to withdraw the draft and cooperate with them on a new one.

The government wants to raise the qualifying period for pension contributions to 45 years from 40 and to raise the retirement age to 65 from 59 for men and to 60 from 57 for women. It also plans to slash pension benefits for those who retire early.

Vienna public transport, the national rail system and state-controlled Austrian Airlines will be paralysed. Protesters are expected to block roads in many towns and cities. Schools will close for the day and hospital staff as well as police have said they will handle only emergencies.

The unions condemn not only the pension cuts but also the government's failure to do anything about the generous pensions systems for politicians, including some who collect a pension from one job at the same time as earning an income from another.