 Inflation fears grow as the truckers' strike takes hold |
Strike action spread across India on Tuesday as bank workers walked out over pay and a truckers' strike entered its fourth day. Nine banking unions totalling about one million members took part in the one-day strike to press bosses to settle a two-year old pay claim.
Leaders of the United Forum of Bank Unions are due to meet on Wednesday to discuss further action.
Meanwhile, truckers have halted deliveries in protest at a new tax.
The bank workers' strike appears to have produced a majority stay away on Tuesday, but it is the truckers' action that could be most economically damaging for the new, left-wing Congress government.
Industrial muscle
Nearly two thirds of goods are delivered by road in India.
Talks between the Finance Ministry and the truck owners' group, the All India Motor Transport Congress (Aimtc), failed to produce a deal on Monday.
"We could not reach agreement. The strike will continue," an Aimtc spokesman said.
Truck owners want the government to scrap a 10% tax on freight bookings unveiled in Finance Minister Palaniappan Chidambaram's budget for 2004/05 in July.
Mr Chidambaram has argued that the tax will only hit freight agents, not truck owners, but the transporters say there is little distinction in practice.
Aimtc had threatened to halt the movement of vital supplies such as vegetables, milk, fuel and medicines on Tuesday if its demands were not met. It appears to have let this deadline lapse.
About 2.5 million trucks are standing idle, according to Aimtc, but the impact so far has been limited by stockpiling.
There are signs that some perishable goods, such as vegetables, are rising in price, and economists fear that a prolonged strike could push inflation, currently at about 7%, higher.
Banking on a better deal
Bank workers are demanding that management in the mainly state-owned banking sector renegotiate a pay deal that lapsed in 2002.
"The strike has affected the entire industry. In Bombay, only a few branches are open," a Bank of India senior executive said.
"We will go on strike again if we don't succeed this time," said Vishwas Udagi, joint secretary of the All India Bank Employees' Association, one of the nine unions taking part.
Bank workers have been offered a 14% pay rise, but are holding out for 18%, he said.
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We will go on strike again if we don't succeed this time 
