On Monday, July 26, all 33,000 truck drivers in Greece went on strike, which is drastically impacting the country and leaving them in dire need of fuel, medicine and food. In response, the government issued an emergency order to return to work by July 29 at 7:30 p.m. Eastern European Summer Time.
As of Friday, July 30, however, the drivers have ignored the government�s order, risking criminal prosecution and the loss of their licenses.
Why would drivers knowingly risk their careers?
What�s causing an entire country�s trucking industry to grind to a halt?
Last May, when Greece was on the verge of bankruptcy, the European Union and International Monetary Fund agreed to help the country avoid defaulting on its loans by providing $146 billion in loans over three years. But this immense rescue loan comes with strings attached. In exchange for the much-needed aid, Greece must make large changes in their budget.
A key aspect of the financial rescue plan requires Greece to open almost 70 of their �closed-shop� professions, which limit licenses and only hire union members. With only 36,000 truck licenses currently available, trucking is among the affected industries. While the country�s economy has doubled in the past three years, no new licenses have been offered since 1986. Under the new plan, the industry would double the number of available licenses beginning in September 2010, in hopes of drastically reducing transportation costs and adding an immediate 1 to 1.5 percent increase in the gross domestic product.
To comply with the new requirement, Greece plans to greatly reduce the price of new trucking licenses.
With the government and truckers in a standoff for the past four days, more than 70 percent of the country�s fuel stations are closed, factories are grinding to a halt and food is not being delivered. The prime minister has called to end the strike which he referred to as causing �serious disruption to economic and social life� which also �poses a threat to public health.�
The story continues to unfold, and is a clear reminder of how crucial trucking is to a country�s ability to function, even for a few days.
Do you agree with the truckers� decision to strike?
What is your opinion of the �closed-shop� profession model?