Ecuador: Unions Plan Big Protest

Publisher Name: 
Reuters

QUITO, Ecuador - Ecuador's largest union confederation
said Tuesday it would stage protests in the capital Quito on March 21
against government plans to adopt the U.S. dollar as official currency.
The Coordinator of Social Movements, which groups agricultural, oil, power,
telecom and other unions, said it would bring Quito to a halt to protest
Ecuador's ''dollarization'', which was approved by Congress last week.

''On March 21 there will be a great march on Quito,'' Coordinator spokesman
Fernando Villavicencio told Reuters.

Together with native Indians and rebel soldiers, the Coordinator staged
massive protests against dollarization that led to the overthrow of
democratically elected President Jamil Mahuad after a brief coup. Congress
later appointed his deputy, Gustavo Noboa, to succeed Mahuad, but he pushed
on with the dollar plan despite wide popular opposition.

A major strike against dollarization is planned for June, but unions have
still not decided how long it will last.

Oil workers at state-owned Petroecuador, which provides more than 50 percent
of government revenue, said last week they would strike on March 21.
Ecuador's government hopes the stable greenback will give its battered
economy something better to grab hold of than the sucre, which lost
two-thirds of its value last year, feeding an inflation rate that surged 91
percent in the 12 months ending in February.

Ecuador's economy, reeling from El Nino damage and a period of low oil
prices, contracted by 7.5 percent in 1999 and the government horrified
investors by defaulting on foreign debt payments.

AMP Section Name:CorpWatch