Dockers strike cuts Greek imports 11 pct-merchants

By Renee Maltezou

ATHENS, July 2 (Reuters) - Strikes by dockworkers have led to cargo pile-ups at ports and slashed container imports to Greece by 11 percent, a merchant association said on Wednesday.

Dockers at Piraeus (OLPr.AT) (OLP) and Thessaloniki ports (OLTr.AT) (OLTH) have been refusing to work overtime and have staged rolling 24-hour strikes since January to protest at government plans to privatise cargo operations.

"Imports have already dropped 11 percent with exports down by more than 8 percent so far this year," said Vassilis Korkidis, head of the merchant association at Greece's largest port, Piraeus, which handles three-quarters of the country's container traffic.

"It will be disastrous if dockers continue as the market won't see any products."

With economic growth subdued, Greek companies were likely to see their profit margins eroded as the strike pushed up the cost of goods and raw materials, Korkidis said.

Greece's $350 billion economy grew at an annual rate of 3.6 percent in the first quarter of this year, its slowest rate since 2004.

Merchants have been seeking alternative ports to transfer products, leading to increased transport costs and delivery delays, he added.

OLP, which reported a first quarter loss of 5 million euros ($7.89 million) due to the strikes, has said full-year results will be in the red if labour action persists.

Last month, OLP picked China's Cosco (1199.HK), the world's fifth largest port operator, to run two of its container piers for up to 35 years.

Greek dockers have said they will continue with labour action in July and could even refuse to work overtime until the end of the year.

"We have decided to go on because we oppose the government's decision to sell port facilities," said George Nouhoutides, head of the dockworkers union at Piraeus. "We may push it as far as December."

Thessaloniki port workers said they will also walk off the job this month. OLTH has said it will announce the details of the offers to run its facilities by end-July, with Cosco, Hutchison Port Holdings (0013.HK) and Dubai Port World DBW.DI among the bidders. (Editing by Daniel Flynn and David Cowell)