Greek dockers call off anti-Cosco port strike

Dockers at the main Greek port of Piraeus have called off a strike over government moves to grant Chinese firm Cosco control of two terminals, their union said Wednesday after losing a court ruling.

On Tuesday, a Piraeus court judged that the strike by some 1,500 dockers since October was illegitimate as jobs were not under threat. The strike had blocked thousands of containers in the harbor to the outrage of traders.

The court forbade any new strike over the same issue and threatened a daily fine of 4,000 euros ($6,000). "Industrial action will be suspended as of Wednesday," the union said.

Workers agreed to talks with the government, a statement from the Greek port Employees Federation, or OMYLE, said.

A new government negotiator promised to begin talks "on the full and perpetual retention of employment posts and labor rights," it said.

The industrial action was the latest in a series of rolling strikes which began last month.

The workers are angry at the deal for Chinese container giant Cosco to take over two terminals at the port of Piraeus.

The previous conservative Greek government granted Cosco a 35-year concession on the two main container terminals at Piraeus in a deal which is to bring a guaranteed premium of 3.4 billion euros ($5 billion).

The new socialist government elected last month is now trying to find ways to improve the terms of the agreement for Greece.

The union wants the deal scrapped, fearing the new operators will bring large-scale lay-offs and that the influx of cheap Chinese goods will undermine the already shaky Greek family-owned store sector. They also argue that the deal gives Cosco excessive tax breaks.

On Sunday, Economy and Shipping Minister Louka Kasteli warned that the government could not simply cancel a legal contract and said cooperation with China was strategically important for Greece.