Mass strike disrupts Portugal as Fitch cuts credit rating to junk status

PORTUGUESE workers’ strike halted public transport and factories in many parts of the country yesterday and thousands marched to protest against austerity measures imposed as a result of the EU/IMF bailout.

The €78 billion rescue fund is designed to keep Portugal afloat and help stem the debt crisis, but the spending cuts have sent the country into its worst recession in decades.

Protesters marched in Lisbon, with many chanting: “Spain, Greece, Ireland, Portugal, our struggle is international!” referring to spending cuts across Europe. “Let bankers pay!” said some banners.

Highlighting Portugal’s economic woes, Fitch Ratings yesterday cut its credit rating to junk.

Police moved picketers to allow a few buses and garbage trucks to leave garages but there was no violence. Minimum public services were maintained under court orders.

Planes were grounded, trains halted and services interrupted as workers across the nation of 11 million protested job losses, tax hikes and pay cuts agreed between Portugal and the troika.

“There is a strong sentiment of outrage, which has to make us reflect a lot about the situation,” said Manuel Carvalho da Silva, head of the 750,000-strong CGTP union.

He said participation in the strike was high in the transport sector, including Volkswagen’s Autoeuropa where car production was halted, and there were “different rates of participation in various parts of the country”.

International flights to and from Lisbon and Porto were cancelled for during the 24-hour walkout. Lisbon airport was deserted.

For weeks, posters lining the streets have urged workers to strike, while the centre-right government insists there is no other way out.

To cut the budget gap and debt, the new government has halved 2011 year-end bonuses for all workers and cancelled year-end bonuses for civil servants next year.

“With what the troika is doing here, I think we have reasons for the strike. I’ve paid my social security since 1981, why am I going to be left without part of my Christmas bonus? I think it is wrong,” said 45-year-old machinist Carlos Silva.