More than 84,000 Norwegian workers launched an indefinite pay strike yesterday in the country's worst labour crisis in 14 years. Consumers' fears led to panic buying.
Oil production and exports were not expected to be affected by the nation-wide stoppage, unions said, but other sectors, including freight haulage, shipping, construction, hotels and restaurants were special targets.
The strike was called by LO, Norway's main umbrella trade union, which has about 800,000 members.
The action quickly disrupted production and supply of consumer goods such as beer, soft drinks, cigarettes and snack foods. On Tuesday people had flocked to stores to stock up on supplies.
The strike also forced the closure of many hotels, cinemas and warehouses, while the lucrative fishing industry expected an immediate impact.
Norwegian media suggested the strike would be long and could be broadened from next week, prompting concerns in neighbouring countries of collateral effects.
"Our clients will have serious problems in three days," said Mr Ottar Henriksen, chief executive of Raufoss, the exclusive supplier of suspension parts to Swedish carmaker Saab and supplier to Germany's BMW, Audi and Daimler-Chrysler.
Another Norwegian manufacturing chief had a similar assessment. "Our warehouse will be empty in two days," said Mr Olav Volldal, director of Kongsberg Automative, a firm supplying components to Volvo and Scania in Sweden, MAN in Germany, Renault of France and DAF of the Netherlands.
Worries about the labour situation have aggravated investors' concerns about rising inflation and interest rates and have contributed to a decline in the national currency, the kroner, now at a 15-year low against the dollar.
The strike orders were sent out last Friday after the members of LO voted to reject a year 2000 wage and benefits deal which their leaders concluded last month with the employers' association, NHO.
Norway is the world's second-largest exporter of crude oil after Saudi Arabia. Union leaders have promised that the oil sector will not be affected.