Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Nationwide strike disrupts France's energy sector as social tensions grow

Published 09/28/2022, 08:04 PM
Updated 09/29/2022, 11:14 AM
© Reuters. FILE PHOTO: French President Emmanuel Macron speaks after visiting the Eric Tabarly high school in Les Sables-d'Olonne, France September 13, 2022. Ludovic Marin/Pool via REUTERS/File Photo

By Caroline Pailliez and Dominique Vidalon

PARIS (Reuters) -A nationwide strike on Thursday disrupted the French energy sector, taking a large chunk of the nuclear production offline, as workers push for a pay hike amid rising tensions between unions and the government over a planned pensions reform.

"Thousands of workers are on strike today," said Philippe Martinez, chief of the hard-left CGT union as he attended a protest march in Paris along with several thousand people, many of them waving red labour union flags.

"This is a message to the government but also to the Medef," he added, referring to France's main employer association.

Thursday's walkouts came amid a concerted call by some unions for company bosses to raise wages due to high inflation. They followed months of individual strike actions across business sectors including transportation, retail and education.

More than 60% of France's refining capacity was off line due to strikes and unfulfilled maintenance plans. Strikes also hit TotalEnergies refineries for a third day.

A 24-hour strike by electricity union FNME hit France's already stretched power grid.

The strike, heeded by roughly a fifth of the workforce, reduced nuclear power generation by 3.5 gigawatts (GW) by 1245 GMT and by 470 megawatts (MW) at hydropower stations - an overall 9% reduction in production capacity, according to utility EDF (EPA:EDF).

The CGT-led national labour mobilisation, also followed by a minority of teachers and railroad workers, had been planned long in advance in an effort to boost the labour movement as public life picks up again after the summer break.

But coming amid a cost of living crisis and at a time the government of President Emmanuel Macron is finalising plans on how to push through an increase in the legal retirement age, the protests were also a barometer of potential social unrest.

"We are here for our salaries, but also because of the pensions issue," said school teacher Marian Talba, 49, who attended the demonstration in Paris. "My husband earns less than I do, and with three children, it's really very complicated."

Protest marches were held in many other cities, including Marseilles and Montpellier.

They were held a day after a crucial cabinet meeting in which Macron, who repeatedly stated his intent to reform the pensions system before next summer, decided to draft legislation by Christmas after new talks with parties and unions.

Macron, who lacks an absolute majority in the National Assembly, also hinted at the possibility of holding snap elections if his reform is blocked, according to participants of the meeting.

"If they don't listen to us, we won't stay at the negotiation table," union leader Martinez said with respect to the reform plans.

The more moderate CFDT union has shunned the strike call, but its boss Laurent Berger has also promised street protests later this year if the government goes too far and too fast on pension reforms.

© Reuters. Protestors and French CGT labour union workers attend a demonstration as part of a nationwide day of strike and protests to push for government measures to address inflation, workers' rights and pension reforms, in Paris, France, September 29, 2022. REUTERS/Gonzalo Fuentes

Asked about the relatively small size of the street protests when compared to previous action against Macron's social reform agenda, Martinez said: "The mobilisation needs to continue and to amplify."

($1 = 1.0268 euros)

Latest comments

Inevitable. Waiting to see how EU copes with this winter.
Ok alpha brain superior free thinker mas t urb ating to people suffering
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.