Zambia banks shut as national strike begins

LUSAKA, – Commercial banks in Zambia’s capital closed their doors on Wednesday as unions launched the country’s first national strike in 16 years to protest against high taxes and a wage freeze for civil servants.

The one-day strike marks the first major backlash against government efforts to satisfy foreign donors by improving fiscal discipline. Union leaders have vowed the strike, which could involve as many as half a million union workers, would paralyse the country but it was unclear early on Wednesday how fully their call would be heeded.In downtown Lusaka commercial banks and some stores were closed.But other shops were open and transport workers – who are not unionised – were keeping the buses running normally.”We may open our outlets much later in the day but that really depends on whether some employees will volunteer to work,” said a senior manager at Barclays Bank Zambia.An official from the Zambian National Union of Teachers, Joel Kamoko, said teachers across the country were also staying away from work while others would join a protest in Lusaka.Police, who had first refused to grant a permit for workers to march on parliament to highlight their grievances, said on Wednesday the planned march could take place.”We have granted them a police permit but we will not tolerate breach of the law or disorderly behaviour,” Lusaka police Chief Chendela Musonda told journalists.Zambia Congress of Trade Unions (ZCTU) President Leornard Hikaumba said he expected a good response to the strike call.”The response is very good as many workers have stayed away from work… we will soon begin our demonstration once we sort out the logistics of transport,” Hikaumba told Reuters.A Reuters correspondent saw workers gathering at different points in the capital Lusaka, many of them carrying placards denouncing the wage freeze and higher taxes.Finance Minister Peter Magande nearly two weeks ago froze wages in the 2004 budget and raised income tax to 40 percent from 30 percent as part of a package of fiscal measures designed to satisfy the International Monetary Fund.About 80 percent of Zambia’s 10 million people live on less than $1 per day and aid is a major source of government revenue.But the IMF last year froze lending to Zambia after its deficit widened to 3.0 percent from an initial forecast of 1.55 percent, prompting President Levy Mwanawasa to announce the government would get tough on spending.The country’s last general strike occurred in 1988, although civil servants did stop work for three days last year to press for better benefits.Union discontent played a major role in Zambia’s first democratic elections in 1991 which ousted liberation hero Kenneth Kaunda.-NAMPA / REUTERSUnion leaders have vowed the strike, which could involve as many as half a million union workers, would paralyse the country but it was unclear early on Wednesday how fully their call would be heeded. In downtown Lusaka commercial banks and some stores were closed. But other shops were open and transport workers – who are not unionised – were keeping the buses running normally. “We may open our outlets much later in the day but that really depends on whether some employees will volunteer to work,” said a senior manager at Barclays Bank Zambia. An official from the Zambian National Union of Teachers, Joel Kamoko, said teachers across the country were also staying away from work while others would join a protest in Lusaka. Police, who had first refused to grant a permit for workers to march on parliament to highlight their grievances, said on Wednesday the planned march could take place. “We have granted them a police permit but we will not tolerate breach of the law or disorderly behaviour,” Lusaka police Chief Chendela Musonda told journalists. Zambia Congress of Trade Unions (ZCTU) President Leornard Hikaumba said he expected a good response to the strike call. “The response is very good as many workers have stayed away from work… we will soon begin our demonstration once we sort out the logistics of transport,” Hikaumba told Reuters. A Reuters correspondent saw workers gathering at different points in the capital Lusaka, many of them carrying placards denouncing the wage freeze and higher taxes. Finance Minister Peter Magande nearly two weeks ago froze wages in the 2004 budget and raised income tax to 40 percent from 30 percent as part of a package of fiscal measures designed to satisfy the International Monetary Fund. About 80 percent of Zambia’s 10 million people live on less than $1 per day and aid is a major source of government revenue. But the IMF last year froze lending to Zambia after its deficit widened to 3.0 percent from an initial forecast of 1.55 percent, prompting President Levy Mwanawasa to announce the government would get tough on spending. The country’s last general strike occurred in 1988, although civil servants did stop work for three days last year to press for better benefits. Union discontent played a major role in Zambia’s first democratic elections in 1991 which ousted liberation hero Kenneth Kaunda. -NAMPA / REUTERS