Economic Calendar

Friday, November 28, 2008

France’s CGT Union Suspends Call for Refinery Strikes on Accord

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By Tara Patel

Nov. 27 (Bloomberg) -- France’s Confederation Generale du Travail labor union temporarily withdrew a call for strikes at some refineries and airport fueling stations following salary talks with managers at companies including Total SA, a union representative said.

Discussions at the Paris-based Union Francaise des Industries Petrolieres, the main body representing the French oil industry, on salaries for oil and refining workers ended today in an accord signed by other unions, though not the CGT, the labor group’s Emmanuel Lepine said by telephone today from Paris.

“The strike action will be suspended,” Lepine said, even though the agreement to raise the industry’s minimum wage by 3 percent “isn’t enough.”

Work stoppages may still occur in coming weeks as talks get under way on working conditions and salaries at individual companies including Total, Lepine said.

The CGT called for work stoppages to begin as soon as today at some refineries including the Lavera refinery, owned by Ineos Group Holdings Plc, and Petroplus Holdings AG’s Petit Couronne plant as well as the Dunkirk lubricant plant jointly operated by Exxon Mobil Corp. and Total, the union said in an e-mailed statement last night.

Other sites that may be affected by stoppages include oil depots at the port of Le Havre and fueling stations at some airports such as Orly, Lyon and Marseille, the CGT said.

Work Disruption

Production was reduced by labor action at the Ineos plant today and work was disrupted at some airport and port fueling areas, Lepine said.

A CGT call for strikes at Total’s Donges, Gonfreville, Grandpuits and La Mede plants was “suspended” late yesterday pending the outcome of the talks today. The French oil company, Europe’s third-largest, is the biggest employer in the sector in France with six of 12 refineries.

Total will hold talks with unions on Dec. 4 to review its 2008 labor agreement, spokesman Michael Crochet-Vourey said by phone today from Paris. Another round of talks to negotiate 2009 salaries will be held on Dec. 12, he said.

“Management at the oil companies and UFIP bear the entire responsibility for any consequences on production and services at sites due to any work stoppages,” the CGT statement said. An escalation of labor unrest among oil workers due to salary issues may result, the union said.

The CGT had sought a 4.5 percent increase in base salaries and 20 percent bonuses for workers with 20 years of experience.

To contact the reporter on this story: Tara Patel in Paris at tpatel2@bloomberg.net




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