Puerto Rico's unions warn of general strike

They want legislators to end government shutdown that has idled 100,000 workers
Walter Pacheco Sentinel Staff Writer
May 6, 2006

SAN JUAN, Puerto Rico -- Union leaders in Puerto Rico threatened Friday to call a general strike that could paralyze the island unless lawmakers found a way to end a government shutdown that has put 100,000 people out of work.

If no agreement is reached, unions representing more than 50,000 electricians, truckers and other private-sector workers would strike Tuesday to show solidarity with the thousands of teachers and other public employees thrown out of work this week because of the government's fiscal crisis."

It's time to end this injustice and abuse against our people," Ricardo Santos, president of the Electrical Industry Workers Union, told hundreds of protesters gathered outside the Capitol.

Meanwhile, more than 45,000 teachers and about 600,000 students remained out of school, and several municipalities throughout the island have suspended public services and left thousands without garbage collection, police enforcement and other municipal services."

I really do feel like these lawmakers are playing with our lives and our children's well-being," said Wendy Santiago, who marched with her 12-year-old daughter. "While the Legislature meets for a few minutes and recesses for several hours, we're out here without jobs, no money for this week and possibly next. I don't know what to do."

By the time Puerto Rico's Department of Labor and Human Resources closed its doors Friday, clerks had processed more than 80,311 applications for unemployment benefits."

This is a historic and record number for us," labor department chief Roman M. Velasco Gonzalez said. More than 85 percent of the public workers affected by the government shutdown have applied for unemployment.

The House worked late into the night before approving a bill that would levy a 5 percent retroactive tax on large corporations with earnings of more than $10 million. If signed by Gov. Anibal Acevedo Vila, the measure would generate $89 million that would be distributed among different government agencies.

Still up for consideration was a bill that would impose a 5.9 percent sales tax -- the first in Puerto Rico's history -- that would repay a $531.5 million loan from Puerto Rico's Government Development Bank to cover workers' salaries and administrative costs until the end of the fiscal year, June 30. That tax measure is expected to raise more than $2.3 billion.

It was unclear when the House would consider that bill.

Acevedo Vila's original tax reform called for a 7 percent sales tax, but he agreed Thursday to the 5.9 percent measure."

The sales tax is the only permanent solution that prevents this from ever happening again," Acevedo Vila said.

Some residents fear a general strike will only complicate matters on the already tense island.

In 2005, a union strike prompted truckers to block access areas to major ports and docks in San Juan, Puerto Nuevo, Ponce and other cities. The island's truckers' union asked drivers to suspend delivery of gasoline and other cargo. Motorists rushed to fill their tanks. The next day, about one third of the island's 1,500-plus gasoline stations were out of fuel.

"The truckers could really mess up traffic and cause even more problems," said Maria Fuentes Ruiz, a member of the teachers' union. "We've seen what the unions are capable of and the government should really take notice."

Puerto Rico's deficit problems stem from lawmakers' inability to approve a budget since Gov. Sila Calderon left office in 2004.

The current budget deficit stands at $740 million.