Portuguese ports strike bound as workers protest state austerity cuts

MARITIME services provider, Inchcape Shipping Services (ISS), has warned of cargo delays at all Portuguese ports for the rest of September as workers strike against government austerity measures.

The strike action follows the government's move to reduce port workers' wages by seven per cent and cut two additional salary payments each year as part of its austerity package. The strikes are expected to severely affect vessel movements, the company said.

Taking part in the strikes are harbour pilots, dockers and port administration workers. ISS pointed out that port administration workers had stopped working overtime from September 10 for an undisclosed period, but this has not affected port movements to date, except at Portimao, where port movements have been slowed.

Portuguese Prime Minister Pedro Passos Coelho earlier in September announced an increase in workers' social security contributions from 11 per cent to 18 per cent of their monthly salary. The cut is equivalent to a net monthly wage, according to London's Containerisation International.

Portuguese Finance Minister Vitor Gaspar also said that income taxes will go up next year and public employees will lose either their Christmas or vacation bonuses - a month's pay. Many pensioners will lose both.

Mass protests have been held, as in Spain, where similar austerity measures are being sought. Followed to its logical conclusion, Italy could also be affected by strike action in due course, said the report.