Greek strike grounds flights, disrupts transport

By Renee Maltezou

ATHENS, Dec 12 (Reuters) - All flights from Athens airport were halted and public services were closed as Greek workers went on strike on Wednesday to protest against government plans to reform the pension system.

Ferries were stopped across the Aegean islands and hospitals worked with emergency staff while thousands of protesters started to gather in central Athens to rally against the newly-elected conservatives.

"Thousands of citizens will be on the streets, almost no public or private sector service will operate," said spokesman Efstathios Anestis of the umbrella workers' union GSEE.

"Participation is almost total. There is overwhelming outrage and condemnation at the government's policies."

Private sector union GSEE and its public sector sister ADEDY, which jointly represent more than 2.5 million workers, have rejected repeated calls from the government to attend talks on pension reforms and have staged several rallies instead.

Like other EU countries with ageing populations, Greece is struggling to reform its pension system before it collapses.

SOCIAL SECURITY

Experts say Greece's fragmented social security system, which runs actuarial deficits twice the country's 200 billion euro annual economic output, is expected to collapse in 15 years if no measures are taken.

The government won a second term in office in September pledging no pension rights will be affected. But shortly after its victory, it proposed measures to encourage workers to stay on the job beyond the age of 65 and a review of pensions for women and the handicapped.

Government officials declined to comment on participation in the strike.

Air traffic controllers said all domestic and international flights were cancelled, and only military, medical or goverment aircrafts were allowed to take off or land at Athens airport.

State carrier Olympic Airways joined the walkout, after the government said on Friday it was unlikely the company could be rescued in its present form.

"This is a big day. There will be no flights. We believe the reaction will be so strong the government will be forced to review its proposals," said Manolis Patestos, president of the federation of civil aviation unions. (Editing by Peter Millership)