Greek fuel strike stalls travelers

ATHENS, Greece — Defying an emergency government order, Greek truck drivers vowed Friday to press ahead with a strike that has halted fuel supplies across the country and is hurting tourism during the peak summer season.

The truckers — now facing prosecution — rejected a compromise offer by the government to offset the financial impact of liberalizing their closed-shop profession.

The summer showdown occurred as inspectors from the International Monetary Fund are in Athens to review the progress of austerity measures promised by Greece's socialist government so it can continue receiving international rescue loans.

"We will press on with our campaign in a forceful way," truckers' union leader Giorgos Tzortzatos said, cheered on by colleagues. "We are hardworking people doing whatever we can to protect what we own."

The protesters staged a peaceful march to parliament.

Sweeping labor reforms in Greece are expected to upset special interest groups for the rest of the year. This follows months of strikes and protests over other belt-tightening measures including sale tax hikes, and cuts in pensions and civil service pay in the midst of recession that has seen unemployment spike to around 12 percent.

On Wednesday, the government issued an emergency civil mobilization order to force the striking truckers back to work. But delays in distributing the notification papers meant that most gas stations in Greece remain closed, as fuel tankers were lined up in protest outside oil refineries and along highways.

The strike has hurt Greek industry and tourism, with fuel shortages likely to affect travel this weekend.

"This is a catastrophe. The decision was taken on the busiest day of the year, at peak season ... I don't know what's worse, what is actually happening today or the bad publicity this is giving us," George Telonis, head of the Greek Association of Travel and Tourist Agencies, told The Associated Press.

"The season so far has not gone too badly, with about a 3 percent drop on the year, despite all the strikes and difficulties ... because we have a very strong product. But I am very worried that damage will be done if this strike continues," he added.

He said the fuel strike will hammer last-minute bookings and popular holiday excursions to beaches and ancient sites.

Hoteliers at resorts in northern Greece, which are normally accessed by car, have reported a steeper drop in bookings this year — more than 15 percent, according to their associations.

"We are helping customers find open gas stations so that they can get home," said Grigoris Tasios, head of the Halkidiki Hotel Association, of resorts in northern Greece. "About one or two gas stations are currently supplied in a 50-kilometer (30-mile) radius, when normally there would be at least 10."

George Amvrazis, managing director of the Greek Hotel Federation, said the strikes had already tarnished Greece's image.

"This has taken a toll on mainland resorts. You won't set out to a resort if you're not sure if you can fill up your gas tank," Amvrazis said. "This current protest, together with all the others, has set the Greece brand back for years."