Business and Finance

MADRID–Spain’s government called on striking truck drivers yesterday to get back to work and warned they had no chance of prevailing in a four-day-old stoppage that has led to shortages and panic-buying of food and fuel.

But two unions representing the strikers, who are protesting soaring fuel prices, stuck to their main demand: establishment of minimum rates for their hauling services.

Prime Minister José Luis Rodriguez Zapatero insisted Spain is gradually returning to normal, and he promised "zero tolerance" of violence or other disturbances by strikers.

The government signed an agreement on Wednesday night with nonstriking unions who represent the vast majority of Spain’s trucking industry. It calls for tax relief and other measures to cushion the effects of higher fuel prices, but not the key demand of the strikers, who are mainly self-employed drivers, and the latter refused to sign.

Zapatero appealed to the strikers to give up their demand and "join in the task of acting responsibly."

Development Minister Magdalena Alvarez told reporters: "One cannot maintain a rigid position when it is causing so much harm."

The strikers’ position, she said, "is not going anywhere."

Interior Minister Alfredo Perez Rubalcaba guaranteed police escorts for truckers who want to work.

He said the diehards control only about 12 per cent of Spain’s 380,000-vehicle trucking industry.

Portuguese truckers ended their strike late Wednesday after voting to accept a government package of measures – including lower highway tolls and tax breaks – to offset high fuel prices.

Spain’s interior ministry said highways that had been clogged by striking truckers are now clear and that 71 people have been arrested since the strike began on Monday.

On Wednesday, riot police removed strikers who had been blocking a key border crossing with France and a highway leading into Madrid.

But supply problems remained payday loans application. More than half a dozen auto plants are idle for lack of parts to assemble vehicles.

Few trucks unloaded yesterday at Mercamadrid, the main wholesale market in the Spanish capital, and many stands there were empty, Spanish media reported.

Antonio Berzal, who runs a grocery store and goes to the wholesale market every morning, said prices of some scarce fruits like cherries have tripled in a matter of days.

"People are taking advantage of the situation," he said.

Sara Ruano, a checkout clerk at a supermarket, said there has been a wave of panic-buying this week, especially on milk.

"Today is not so bad, but yesterday this place was packed," she said yesterday.

The independent drivers who are on strike say big trucking companies can cope better with fuel price increases by lowering their hauling rates to land more jobs. So the self-employed drivers are demanding a minimum, guaranteed rate for their services.

The Socialist government refuses, saying that would interfere with free-market competition and actually violate European Union rules.

Spanish truck drivers say their diesel costs have risen 36 per cent in a year.

Spanish fishermen have been on strike since May 30, also over fuel costs, and this is compounding problems getting fish supplies to consumers.

On Wednesday, a federation mostly representing small boat owners announced it was returning to work because it could not maintain the strike.

But the bigger fishing boat owners are continuing their nearly two-week-old stoppage.

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