9 Jun 2010

Public sector unions on strike in Spain

6:13 am on 9 June 2010

Public sector workers in Spain are on strike in protest against an average 5% cut in pay.

The cuts come into effect this month and are part of a government austerity package aimed at reducing the country's budget deficit.

Unions say 75% - 80% of public sector workers have joined the strike.

However, the ministry of labour put the figure at 16%. More than 2.5 million people work in the public sector.

Spain recently had its credit rating downgraded, amid fears it could follow Greece into a debt crisis. Its budget deficit currently runs at more than 11%.

In May, Spanish Prime Minister Jose Luis Rodriguez Zapatero announced a 5% cut in public sector pay, starting this month. Salaries will be frozen in 2011.

The BBC reports there were also big cuts in public investment and development aid. Some pensions were frozen.

The cuts are part of a 15 billion euro ($US18 billion) package of austerity measures also meant to reassure the financial markets that Spain will meet its debts.