European Central Bank staff plan to hold their first ever strike later on Wednesday in a row over pensions and other benefits, just a day before the bank's critical monthly policy meeting.
Disgruntled workers are due to gather from 1400 GMT around the giant euro sign outside the ECB's Frankfurt headquarters for a 1-1/2 hour protest. The ECB said in a statement that back-up plans are in place to ensure smooth operations.
Strikes at major central banks are rare events. This one is being held just a day before the central bank is expected to detail plans for its first ever asset purchase programme and keep interest rates at a record low to help pull the euro zone economy out of recession.
The International and European Public Services Organisation (Ipso), the staff trade union organising the protest, says the changes could reduce staff benefits by as much as 15 percent.
The changes include staff making bigger pension contributions and a reduction of incentives for earlier retirement. Ipso says it is also angry about general lack of influence staff have in pay and benefit discussions.
Staff were informed by letter that ECB President, Jean-Claude Trichet, and the rest of the bank's Executive Board have decided to dock the pay of any striking staff during the protest.
"The Executive Board also confirmed that the total period of the strike would be deducted from the salary and salary related payments of the staff members taking part in the strike action," a letter by Deputy Director General of HR Berend van Baak said.
The strike would be the first in the ECB's 10-year history.
The U.S. Federal Reserve has no record of strikes while the last industrial dispute at the Bank of England is thought to be by its printers in 1912.
The ECB says staff were involved in meetings about the pension and benefit changes but that European law makes clear the bank's top management are the only ones who have any say over pay.
"The (Maastricht) treaty is clear. It gives the competence of this to the ECB Governing Council," a spokesman said, adding this was in line with other major European institutions.
Ipso, the union organising the strike, has around 450 members among the ECB's 1,500 staff. Last month the Standing Committee of European Central Bank Unions, which represents around 50,000 central bank workers across the whole of Europe, also criticised the ECB.
"Whereas the Federal Reserve and the Bank of England are committed to transparency, the ECB remains closed to democratic accountability by the people's representatives," it said in a recent statement.
For a copy of the ECB's statement, please see: http://www.ecb.int/press/pr/date/2009/html/pr090603.en.html
