Read this article in:
2 October, 2006
The French joint trade union front against the privatisation of Gaz de France (GDF), consisting of CGT, FO, CFE-CGC, and CFTC, called for a second national manifestation day tomorrow, 3 October, in Paris and in other French cities. This new call for demonstrations follows the union’s first day of action on 12 September.
Tomorrow is the day when the National Assembly in France is set to vote on proposed legislation that, if adopted, would clear the way for the government-planned merger between GDF and the Franco-Belgian utility, Suez Group.
Another demonstration day is scheduled to occur 14 October. According to a report published by the unions, who quote banking sources – specifically banking giant ING – some 20,000 jobs could be lost over the next three years if the merger deal goes through. The unions have also written to President Jacques Chirac, asking him to stop the privatisation of GDF.
Opposition to the merger deal, which was brokered by Prime Minister Dominique de Villepin to fend off a hostile bid of Suez by Italian energy company Enel, appears to be growing, with not only opposition parties and trade unions fighting it, but also with some members of the ruling UMP Party resisting.
In spite of this growing resistance, the first legal step to the merger process was taken last week when deputies in the National Assembly voted in favour of one key article of the proposed law, a measure to reduce France's stake in GDF from over 70% to 34%. However, as far as the unions are concerned, this “file has not been closed yet.” The proposed merger has yet to be voted on in its entirety, nor is it yet a done deal.
The CGT, the union with the largest membership inside GDF, as well as Electricité de France (EDF), said in a statement: considering “the growing opposition by French citizens to the privatisation of GDF, it is no longer tolerable in this country for fundamental dossiers, such as the privatisation of the energy sector, to be dealt with only in the interest of one political party.” The union found it surprising that “with 80% of the French being against the privatisation, the Prime Minister announces this as a victory.”
On 20 September, GDF and Suez announced a proposal of five measures, including asset transfers, in reply to the EU Commission’s anti-trust demands. FCE-CFDT seriously questions these proposed remedies forwarded by the two companies, saying wide ramifications would occur that have not been properly thought through.
Problematic issues include, for example, the fact that competing companies would get easy access to a public resource without guarantees on pricing. The FCE-CFDT reiterated its demand to examine the alternative solution of developing partnerships between Suez and GDF, which would keep GDF in the public sector.