Taxi drivers cause chaos with wildcat strikes

| Tue, 07/04/2006 - 04:50

Italian taxi drivers on a war footing over government plans to increase the number of taxis in circulation staged wildcat strikes across the country on Monday.

Rome, Milan, Turin, Genoa and Naples were among the cities hit by chaos as drivers blocked key roads and staged 'go slow' protests. Passengers were left stranded at airports, stations and taxi ranks with drivers refusing to accept customers and threatening to continue their strikes unless the government performed a U-turn.

The protests began on Friday when the new centre-left government unveiled a surprise decree allowing municipal administrations to increase the current number of taxi licences.

The decree would also allow local government to issue temporary permits during predictably busy periods and give private firms the right to offer public transport services. The government said the measures would improve Italian
taxi services, bring down fares and boost competitiveness in the transport sector to the benefit of the consumer. It argued that the current number of taxis in Italy was insufficient to meet demand, a position that was firmly upheld by consumer rights' groups.

According to official statistics, Italy has one of the smallest taxi fleets in Europe, with 2.1 taxis per thousand inhabitants in Rome and 1.6 in Milan compared to 8.3 in London and 9.9 in Barcellona. There have been growing complaints from city residents and tourists over the difficulty in finding a taxi during peak hours and at night.

Taxi drivers have been accused of deliberately restricting the number of cars available in order to safeguard their earnings.

But taxi unions angrily rejected such arguments, insisting there were more than enough taxis in circulation and blaming heavy traffic for any problems with services. They said that deregulating the sector would drastically cut their earnings and make taxi services less safe. Many drivers complained that they had invested their entire savings in buying a licence, which they said cost as much as 200,000 euros. They expressed concern that their investments would be worthless if the sector were deregulated.

The unions also slammed the government for announcing the decree out of the blue without first discussing it with them and listening to their objections. Unions have announced a nationwide taxi drivers' strike on July 11 but many drivers began spontaneous stoppages on Friday which culminated in Monday's protests. The opposition coalition headed by former premier Silvio Berlusconi expressed support for the taxi drivers, accusing the government of "targeting" and "punishing" part of their traditional voter base.

Premier Romano Prodi, who narrowly won Italy's April general election, stood by the decree, which is expected to be approved within days. "Protests are always understandable but the more I examine the decisions taken, the more I see that they are in the general interest," said the centre-left leader.

"I think parliament and public opinion both realise that it's time for change... These measures are not designed to target anyone and certainly not categories considered close to the previous government," added Prodi.

The decree, drawn up by Economic Development Minister Pierluigi Bersani, contains reforms designed to increase competitiveness and benefit the consumer in a number of sectors. Among other things, it breaks chemists' monopoly of
drugs sales by allowing medicines to be sold in supermarkets, simplifies the sale of second-hand cars by eliminating the
need for a notary's involvement; and abolishes the minimum fee regime adopted by lawyers. Banks will also be prevented
from charging clients who close their accounts.

The decree was applauded by consumer rights' associations, who said it would save Italian families up to 1,000 euros a year.

Even the UDC, a centrist party in the opposition, risked a rift with its allies by expressing support for the measures.

Meanwhile, a parliamentary committee tasked with ensuring that Italy's strike laws are obeyed warned taxi drivers on Monday to return to work or face hefty fines. Stressing that wildcat stoppages were illegal, the committee said that drivers could be fined 500 euros or more if they continued their protests.

In Milan, the drivers blocked the main road leading from the city's Linate airport into the centre, while in Rome, more than 200 taxis took part in a go-slow drive along the motorway leading to the main airport.

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