Cost of Colombia strikes amount to $470M: Banks

Five strikes from differing sectors of Colombia’s economy during the final quarter of 2012 and the first quarter of 2013, represented a loss of approximately $470 million, banks said Friday.

According to the national association of financial institutions on Friday, these figures represent the impact of the strikes in the coal, coffee, justice, agriculture and transportation sectors, which amounted to 117 days in total.

The justice strike for example, which lasted 42 days, cost the economy $34 million and resulted in approximately 150,000 case files.

In the coal sector, the strike at the Cerrejon mine lasted for 22 days, causing production to drop 21% in the first quarter. The economic loss amounted to $346 million, one of the more significant strikes in relation to its cost to the economy.

The coffee strike in the Catatumbo region cost the economy approximately $44 million, while the demonstrations of cocoa farmers and potato farmers cost the economy an added $36 million.

Finally, the work stoppages at the national university amounted to approximately $19 million.

Sergio Clavijo, the President of the national association of financial institutions believes that such problems are reason for the economic downturn. He stated “with regard to the economic downturn, the government assigns great weight to ‘external shocks’, as we see however, many of the factors are home cooked.”

Sources

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