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		</div><p><a href="http://londonglossy.com/wp-content/uploads/2010/12/government-wins-vote-before-strike.jpg"><img class="alignnone size-full" title="Heavy traffic fills a road in Athens during a public transport strike (AP)" src="http://londonglossy.com/wp-content/uploads/2010/12/min-government-wins-vote-before-strike.jpg" alt="Heavy traffic fills a road in Athens during a public transport strike (AP)"/></a></p>
<p>Greece&#8217;s governing Socialists won a key vote on labour reforms in parliament as transport unions escalated their protests on the eve of a new general strike that will ground flights, close schools and disrupt services.</p>
<p>Crippled by high budget deficits and a mountain of debt, Greece was saved from bankruptcy in May by a 110 billion euro international rescue loan package. In return, the government slashed pensions and salaries, hiked taxes, raised retirement ages and eased restrictions on private sector layoffs.</p>
<p>On Tuesday night lawmakers passed a labour reform package in a 156-130 vote, with 14 absent. But prime minister George Papandreou expelled a dissenting lawmaker from his party &#8211; the fourth member to be expelled since the Socialists came to power last year &#8211; leaving his party with a six-seat majority.</p>
<p>The labour reforms include fresh pay cuts, salary caps and involuntary staff transfers at state companies. They will also reduce unions&#8217; collective bargaining powers in the private sector, where employers will be able to substantially reduce salaries.</p>
<p>Public transport workers, among those directly affected by the reforms, held a 24-hour strike today, leading to large traffic jams in Athens as commuters car pooled and used taxis to get to work. Disruptions will continue tomorrow when Greece&#8217;s two largest unions have called their seventh general strike of the year.</p>
<p>Unions and opposition parties oppose the reforms, which left-wing parties claim will take labour relations &#8220;back to the Middle Ages&#8221;.</p>
<p>But the Socialists cite the need to turn around loss-making public corporations while saving private sector jobs by allowing struggling businesses to cut costs.</p>
<p>&#8220;Right now, there is just chaos and anarchy in labour relations,&#8221; Mr Papandreou said. &#8220;There is no kind of protection.&#8221;</p>
<p>&#8220;We want to keep firms afloat and prevent layoffs,&#8221; he said.</p>
<p>Outside parliament, about 1,000 demonstrators from unions gathered in protest, demanding a more extended debate on the proposed reforms, and changes to most of the proposals.</p>
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