Irish public workers strike over budget reform

DUBLIN Nov 24 (Reuters) - Much of Ireland's public sector was expected to grind to a halt on Tuesday in a protest against the government's plans to cut pay and reduce the large public deficit.

Prime Minister Brian Cowen, who has a very thin majority in parliament, needs to push through 4 billion euros of savings in the Dec. 9 budget in the face of opposition from trade unions and some members of his unpopular governing coalition.

Cowen says spending cuts are needed just to stabilise the deficit at 12 percent of gross domestic product, before he can start lowering it towards the European Union upper limit of 3 percent, which Brussels wants him to reach by 2014.

Unions want a more gradual fiscal reform lasting until 2017 and say it should start by levying higher taxes on top earners, not cutting spending.

Firefighters were the first to go on strike at midnight, and some 250,000 teachers, prison guards, civil servants and other public workers were set to join the stoppage against plans to slash 1.3 billion euros from their combined pay bill.

The strike is due to last 24 hours, with most public institutions shut and emergency workers taking turns to provide basic cover.

Unions have called off strikes in some areas so as to have all hands on deck in the battle against floods.

The government said it would talk to the unions but was determined to cut spending.

"We are in discussions to see if can we secure an agreement," Finance Minister Brian Lenihan said on Monday. "That said, we will take the necessary actions if we have to take them."

Cowen, criticised by many voters for his handling of the recession, has strengthened his position by getting the EU Lisbon reform treaty approved in last month's referendum and securing parliamentary approval for a 54 billion euro ($80 billion) "bad bank" plan.

Analysts said he was unlikely to be deterred by the strikes.

"The government has pretty much picked the course of action and decided it is going to proceed down this road," said Theresa Reidy, lecturer in public finance at University College Cork. (Reporting by Andras Gergely, Antonella Ciancio and Padraic Halpin; editing by Tim Pearce) ((andras.gergely@reuters.com; +35315001529; Reuters Messaging: andras.gergely.reuters.com@reuters.net))