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Pushed by transport strike, Spanish businesses weigh furlough schemes -Breaking

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© Reuters. In the middle of rising fuel and operating cost and a strike for transport in Spain’s Basque port Of Ondarroa (March 23, 2022), a fishing vessel is seen passing a truck. REUTERS/Vincent West

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Christina Thykjaer and Horaci Garcia

MADRID, (Reuters) – Furlough programs may be necessary if a strike in transport causes shortages of fresh produce, Spanish food industry and retail associations said on Wednesday. This is increasing pressure on government officials to solve the problem.

Since a small group of drivers, truck owners and other vehicle operators began to block roads and ports last Wednesday in protest at rising fuel prices that were exacerbated after Russia invaded Ukraine, the strike has been spreading.

After Monday’s government proposal of a 500m euro ($550.45million) assistance package, drivers dismissed it as inadequate to counter the escalating diesel prices. Three large transport organizations joined the protest.

Jose Maria Bonmati (head of AECOC’s business association) stated that the strike is getting longer and it was clear that the government will have to resort to this (furloughing) tool.

The protest was joined by taxi drivers in Barcelona as long lines of trucks crawled down Spanish streets on Wednesday.

Tito Alvarez of the Elite taxi union stated, “I do not know if this is war…Prices have already begun to rise.” What cannot be is the fact that a taxi driver walks out onto the street and has to pay money for his work.

Before meeting with Luis Planas (Fisheries Minister), most of Spain’s fishing fleet has also been suspended.

Ramon Alonso Maneiro is a Basque fisherman from Ondarroa. He said that fuel costs 24,000 Euros per week.

CEOE Spain’s largest business association urged government officials to explain their plans to address rising energy costs. They also asked for an end to the blockades which caused companies to stop production or led to product shortages.

“It’s difficult to understand why no more aggressive and prompt action was taken,” the report said. It pointed out that France and Italy had previously announced similar measures.

Retailers acknowledged that there were some food shortages and advised consumers to not panic purchase while pressing the authorities for a solution.

Tensions are rising so the government called for a meeting of transport associations and other officials on Thursday.

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