The New York Times for Saturday, June 10 [p. A3] reported:

"One-Day National Strike Freezes Much of Argentina" [hed]

Unions Unite to Protest Austerity Policies

By Clifford Krauss

"BUENOS AIRES, June 9 -- Several million workers joined or were forced to acquiesce to a one-day national strike today to protest President Fernando de la Rua's economic austerity policies and Argentina's 14 percent unemployment rate.

"The strike, the largest in four years, represented a rare show of unity by the fractious labor movement and the most serious challenge to Mr. de la Rua's deficit-cutting policies since he took office in December. ....

"Major cities and much of the countryside were paralysed as thousands of railroad, subway, bus, truckand airline workers joined the walkout....

"'What the people want is work,' said Rodolfo Daer,head of the General Labor Confederation, the largest workers' group. 'What the government needs to understand is that the people are demanding a change in direction." ....

"The strike was planned to protest a $938 million cut in public spending, or 2 percent of the government budget. The spending plan, announced two weeks ago, is intended to meet International Monetary Fund guidelines and retain access to a $7.2 billion emergency credit line from the fund.

"The austerity package includes salary cuts for national government workers of 12 percent to 15 percent, reducing public retirement payments and bans public workers' earning salaries while receiving state pensions from previous positions.

"The latest round of cuts was imposed on top of $1.4 billion in cuts initiated by the de la Rua administration in its first weeks in office. All told, the spending cuts and a $2 billion tax increase are intended to bring down interest rates and keep the federeal deficit under $4.5 billion this year, or one-third below the 1999 total.

"The general strike today was the second since Mr. de la Rua took office. But it was much bigger than the splintered work action in February, which aimed to prevent changes in the labor law that were intended to lower labor costs for businesses. Congress eventually passed changes, anyway.

"The unions are also upset over a decree that promises to deregulate the health industry gradually, expanding private health insurance to the detriment of a union-based health-insurance system...."

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