Striking workers march across UK

London (CNN) -- Hundreds of thousands of British teachers, air traffic controllers, customs officers and other public sector workers went on strike Thursday, causing potential chaos for schoolchildren and travelers.

Workers are demonstrating in many British cities, including London, where thousands of strikers marched peacefully in the center of the city, their route taking them near the prime minister's office at 10 Downing Street.

"We've paid into our pensions, we've paid our taxes," striking adult education tutor Annie Holder said, adding that she was "really angry about the government's politically motivated attempt to steal our pensions."

She blamed "the banking sector" for the country's budget woes.

And she rejected rhetoric from opponents of the strike about the public sector's "gold-plated pensions."

"Our pension will be about 60 pounds ($96) a week. It's hardly gold-plated. We'll have to work much harder and pay more," Holder said.

Police in London said they had made 24 arrests in total as of mid-afternoon.

Since Thursday morning, 18 had been arrested for offenses including possession of drugs, criminal damage and breach of the peace, the police said, with six others detained overnight in Trafalgar Square.

Police declined to estimate the size of the crowd, but one union said it was in the tens of thousands in London.

CNN reporters in the central Whitehall area said there were more police and media present than protesters, and that there were minor scuffles earlier. Some demonstrators continued to sit in the street in Whitehall in protest, but the public had been allowed back into Trafalgar Square.

Four unions have told their members to stop work over planned government changes to the pension system.

Perhaps ironically, state pension staff are among those on strike, as members of the Public and Commercial Services Union.

Three teachers' unions are also on strike -- the National Union of Teachers, the Association of Teachers and Lecturers, and the University and College Union -- which together have more than 350,000 members.

The PCS, Britain's fifth biggest union, boasted it had 84% participation from its 300,000 members.

Some 80% of schools across the country are closed or partially closed as a result of the strike, the National Union of Teachers said, and there are fears that airports and ports will be snarled as well.

Nine out of ten police staff who answer calls from the public were on strike, London's Metropolitan Police said.

The National Union of Teachers said the strike is because "the government is planning to cut your pension. They want you to pay more, work longer and get less," arguing that because pensions are "deferred pay ... you are effectively being asked to take a pay cut."

The government, a coalition of Conservatives and Liberal Democrats, is trying desperately to slash government spending in the face of huge deficits.

Danny Alexander, the No. 2 official in the British Treasury, argued earlier this month that "it is unjustifiable that other taxpayers should work longer and pay more tax so public service workers can retire earlier and get more than them."

"It is the employees who are benefiting from longer life and generous pensions, but it is the taxpayer who is picking up the tab," he said.

Alexander, a Liberal Democrat, said the changes the government was proposing aimed to ensure that "public service workers continue to receive among the best, if not the best, pensions available."

Holder, the striking teacher, said the government's explanations for planned changes to the pension system were "nonsense."

The government's Cabinet Office said less than half of PCS workers went on strike Thursday.

Cabinet Office Minister Francis Maude, a Conservative, said Wednesday that the strike was "premature" while negotiations between the government and unions were still going on.

He argued that only a minority of civil servants and teachers had voted to strike.

Feelings were strong, however, among many of the workers involved.

Jenny Adams, a teacher from Croydon, said, "We've got a situation where young people are not going to want to stay in this profession.

"It's about who's being asked to foot the bill for a mess that was made by others. We're in a profession that is not kind when it comes to age. It's inconceivable to be in a classroom in (one's) late 60s."

Union leader Dave Prentis warned last week that if the government does not change course on pension reform, the country could face the biggest strikes since 1926. Between 1.5 million and 1.75 million workers participated in a general strike lasting nine days that year.

Prentis, the head of Britain's largest public-sector union, Unison, issued a similar warning in 2005.

Unison is not participating in Thursday's strike but has not ruled out holding one in the autumn if the government presses ahead with its plans.

CNN's Dan Rivers, Jonathan Wald, Antonia Mortensen and Per Nyberg contributed to this report.

CNN

Rival groups march over king's reforms in Morocco (Reuters)

CASABLANCA, Morocco (Reuters) – Thousands of rival demonstrators marched through cities in Morocco on Sunday over constitutional reforms proposed by King Mohammed after unrest inspired by "Arab Spring" uprisings in the Arab world.

Critics of the reforms say they do not go far enough to reduce his powers. The march against the monarch's measures was the latest in a wave of protests in the North African state and comes days before a July 1 referendum on the reform plan.

"We reject the offers made (by the king). They keep the essence of authority in the hands of a non-elected person who will not be subject to any form of accountability," said Hamid, a jobless 38-year-old among 7,000 protesters who marched through a working class suburb of Casablanca, Morocco's largest city.

Aziz Yaakoubi, a member of the "February 20" pro-democracy street movement named after its founding date, said two of the protesters were injured after being pelted with stones by a group of rival demonstrators in favor of the king's reform.

A smaller rally of about 2,000 people opposed to the king's proposals marched through the capital Rabat, separated from rival marchers by dozens of baton-wielding riot police.

"The police encircled us, they didn't let us march to the parliament," said Najib Chawki, one of the coordinators of the movement, which is urging supporters to boycott the vote. "It shows that the powers in Morocco have no interest in changing."

The 47-year-old king unveiled the reforms this month after some of the largest street protests the Arab world's longest-serving dynasty has seen for decades. His fortunes are being watched by other monarchs, notably in the Gulf.

PREACHERS TOLD TO BACK REFORM

The new charter still allows him to name a prime minister -- but this time only from the party that wins most seats at parliamentary elections -- and to vet appointments of other ministers and suggest the termination of their mandates.

It explicitly grants the government executive powers, but it keeps the king at the helm of the army, religious authorities and the judiciary and still allows him to dissolve parliament, though not unilaterally as it is the case now.

The Moroccan street movement has not won the mass support that toppled leaders of Tunisia and Egypt and does not demand an end to the monarchy. It focuses instead on the king's perceived growing business influence and his grip on the political system.

National income per head in Morocco was $2,810 in 2009, according to the World Bank, higher than Egypt's $2,070.

But Morocco ranks 13 places below Egypt at 117th in the United Nations' Human Development Index, a measure of quality of life based on factors such as child welfare and life expectancy.

"Surely there is graft and a lot of oppression. But the new constitution will change everything," said 19-year-old Casablanca resident Karim Azhari.

"It will bring state education up to the same level as the private sector and it will reduce unemployment," he said. Asked why he thought that, he replied: "That's what they tell us."

Authorities on Friday ordered mosque preachers to urge worshippers to vote for the reform, saying it would be unIslamic to disobey the king, described in sermons as "God's appointee."

Mustapha Nazih, a cleric at a pro-reform march in Casablanca organized by Boutchichiya Zawiya, one of Morocco's biggest and wealthiest sufi schools, said he had come all the way from the town of Beni Mellal, 300 km (190 miles) from Casablanca.

"We didn't have to pay for the bus fare. The Islamic Affairs Ministry asked us to come to Casablanca and we did so happily."

(Writing and additional reporting by Mark John in Rabat; Editing by Matthew Jones)

Yahoo! News

Police boost patrols for east Jerusalem march (AP)

JERUSALEM – Israeli police have boosted security and stepped up patrols across Jerusalem to prevent possible clashes when Israelis march through the largely Palestinian east Jerusalem to mark the anniversary of Israel's capture of the area in 1967.

Police spokesman Micky Rosenfeld says 3,000 officers, including border police and undercover units, are on patrol for Jerusalem Day events on Wednesday.

About 30,000 Israelis are expected to march through the largely Palestinian neighborhood of Sheikh Jarrah, past a contentious Jewish enclave there.

Palestinians claim east Jerusalem as the capital of their future state. Israeli Prime Minister Benjamin Netanyahu says Israel will never divide the city.

Rosenfeld says five officers were injured by Palestinians throwing stones and firebombs on Tuesday night.

Yahoo! News

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Consumer Spending Rises in March, Added Money Going Toward Gas

Associated Press

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WASHINGTON -- Consumers spent more in March, but most of the added money went toward higher gas prices. 

Retail sales increased 0.4 percent last month, the ninth consecutive gain, the Commerce Department reported Wednesday. The increase shrank to a slight 0.1 percent when sales at gasoline stations were excluded. 

The biggest decline in auto sales in more than a year also pulled down overall sales. When taking out sales at gas station and of autos, retail sales rose 0.6 percent. 

Economists are hoping that a payroll tax cut and brighter outlook for job growth will keep consumers shopping this year. Consumer spending accounts for 70 percent of economic activity. 

But analysts worry that the recent spike in energy prices will not leave shoppers with much left over to spend on other goods and services. The nationwide average for regular gasoline is now $3.80 a gallon, up from $3.56 a month ago, according to the motor club AAA. 

For March, sales of autos dropped a sharp 1.7 percent, the biggest decline since February 2010. 

However, some of the weakness was because General Motors scaled back incentive offers. 

Economists believe the outlook for auto sales for the rest of this year remains bright, given improving job prospects. 

Shoppers did spend 3.6 percent more at furniture stores. Sales were also rose at appliance stores and specialty clothing stores. Sales at general merchandise stores, the category that includes big retailers such as Wal-Mart, rose 0.4 percent. 

However, sales at just department stores such as Macy's saw a 0.2 percent drop in March. A survey of major retailers from Costco to Victoria's Secret had reported surprisingly good sales for March. Analysts said the gains would have been better but for the fact that Easter does not come until late April this year.

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Private Sector Leads Way on Economy in March, Focus Shifts to Sustaining Momentum

AP

Friday: President Obama gestures while speaking at a UPS facility in Landover, Md.

WASHINGTON -- With the economy showing signs of life in a new government report Friday, politicians on both sides sought to claim credit while turning their attention to ways to keep heading in that direction.

The jobless rate in March ticked down to a two-year low of 8.8 percent as the economy added 216,000 new jobs at the fastest two-month pace since before the recession began, offsetting layoffs by local governments, according to the Labor Department.

President Obama said despite the good news, "we have to keep the momentum going." He said he won't "rest until everyone who wants a job can find one."

The president, speaking at a UPS facility on a private-public partnership to assist companies' in creating fuel efficient vehicle fleets, said transitioning to a clean energy economy will help in that direction. 

"First, it reduces the chance that our families, our businesses and our economy will be held hostage to the whims of the oil market. Second, investments in clean energy have the potential to create an untold number of new jobs and new industries right here in the United States," Obama said.

Obama's chief economic adviser Austan Goolsbee told Fox News that the top priority is getting people back to work but he didn't offer specifics on how the administration planned to do that. Goolsbee pointed to the tax deal Obama struck with Republicans late last year that cut the payroll tax for 150 million workers, saying that improved after-tax wages at time when energy and food prices are on the rise.

White House Press Secretary Jay Carney said in a tweet that with the economy showing signs of strength, "it's imperative we find common ground and not do anything to jeopardize recovery."

That was a not-so-veiled reference to the contentious budget negotiations between House Republican leaders and Senate Democratic leaders over what and how much to cut from current spending levels as a government shutdown looms next Friday.

House Republicans have passed a budget plan to slash $61 billion; Democrats are willing to cut $33 billion; but Tea Party activists and freshman lawmakers elected with their support are insisting on $100 billion in cuts.

House Democratic Leader Nancy Pelosi also made political hay out of the jobs report, crediting President Obama and congressional Democrats for taking steps to get the economy back on track and warning that Republicans are hellbent on sabotage by passing legislation that she claims would destroy more than 1 million jobs.

"Now is the time for Republicans to join Democrats to create jobs, strengthen the middle class, and responsibly reduce the deficit instead of threatening our economic growth and our families' economic security," she said in a statement.

Republicans, who also cheered the economic news, fired back that runaway federal spending, higher taxes and burdensome regulations are threatening to derail the recovery.

"Decreasing unemployment numbers are always welcome news," said Rep. Sam Graves, R-Mo., chairman of the House Small Business Committee. "But this number could be better and more Americans could be back to work faster if we eliminate excessive government spending, lower taxes and remove government regulations that are strangling job creation and halting economic growth."

Rep. Dave Camp, R-Mich., chairman of the Ways and Means Committee, added that the tax code should be overhauled.

"While we have taken a good first step in restoring confidence to job creators, we must continue to remove the impediments to sustained economic growth," he said. 

The second straight month of brisk hiring is the latest sign that the economy is strengthening nearly two years after the recession ended.

Private employers, the backbone of the economy, drove nearly all of the gains. They added 230,000 jobs last month, on top of 240,000 in February. It was the first time private-sector hiring topped 200,000 in back-to-back months since 2006 -- more than a year before the recession started.

The unemployment rate dipped from 8.9 percent in February to 8.8 percent in March. The rate has fallen a full percentage point over the last four months, the sharpest drop since 1983.

Sen. John Cornyn, R-Texas, sought to claim party credit for the falling unemployment rate.

"Since Republicans convinced our colleagues across the aisle not to raise taxes, America has added nearly 650,000 jobs and the unemployment rate has dropped from 9.4 percent to 8.8 percent," he said in a statement.

"Nevertheless, Washington's regulatory uncertainty is keeping many job creators on the sidelines and many millions of Americans unemployed," he added. "If we really want to kick our economy into high gear, we need to reign in federal bureaucrats who are making it difficult to predict future energy and health care costs, as well as access to credit."

Economists predict employers will add jobs at roughly the same pace for the rest of this year. That would generate about 2.5 million new positions. But that will make up only a small portion of the 7.5 million jobs that were wiped out during the recession.

And the economy faces other pitfalls. Local governments, wrestling with budget shortfalls, cut 15,000 workers last month and are expected to keep shedding jobs. Home prices are falling amid weak sales and a record number of foreclosures. Higher food and gas prices are leaving consumers with less disposable income to spend on other goods and services.

Campaign for America's Future, a progressive group, said layoffs by federal and local governments are sabotaging the recovery.

"To no one's surprise, the federal and state governments are sending out pink slips," said Roger Hickey, co-director of the group. "This means cops, teachers and firefighters are losing their jobs at time when where are no other jobs available. The economy is not firing on all cylinders, which is why this is the worst time to lay off middle class Americans."

The number of unemployed people dipped to 13.5 million in March, still almost double since before the recession began in December 2007.

Including part-time workers who would rather be working full time, plus people who have given up looking altogether, the percentage of "underemployed" people dropped to 15.7 percent in March.

The U.S. Chamber of Commerce warned that the turmoil in the Middle East, the nuclear crisis in Japan and the fiscal problems in Western Europe has undermined the global economy and could imperil the U.S. economic recovery.

"If these problems were to spill over to the U.S. economy, causing growth to slow below its potential rate of growth of between 2.5 - 2.75 percent, they could upset the modest job gains we've seen thus far," the chamber said in a statement.

The Associated Press contributed to this report.

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