Signs of end to French strike chaos

Two French unions have agreed a compromise with the government over controversial pension reform plans, easing the recent travel chaos.

France had been paralysed this week by a nationwide strike by transport workers, opposing government plans to make public sector employees work longer for retirement pay.

But the moderate CFDT union and the smaller CFE-CGC have now backed an amended version of the plans, signalling a split in the union movement.

With three employer groups also supporting the reform, French Labour Minister Francois Fillon said he now expected to push the measures through parliament - where the government has a large majority.

However, a number of other unions have called for further strikes from 19 May.

Union split

France's one-year-old conservative government had proposed plans to avoid a funding crisis in the country's pension system, suggesting people work longer for full retirement pay.

Strong opposition brought the country's transport system to a virtual standstill this week, forcing commuters to squeeze into the restricted tube service, wait in grid-locked traffic or take to bicycles to get to work.

Thursday night's deal with two unions promises to end the chaos but hard-line unions are still holding out.

Civil service unions have called for a strike on Monday, school and hospital workers are threatening action and a mass demonstration to oppose the reforms is planned for 25 May.

Francois Fillon, minister for social affairs, said on Friday that negotiations had reached a standstill with the Workers' Force union and hard-left CGT.

The first leg

Prime minister Jean-Pierre Raffarin said he was optimistic of an end to the protests after Thursday night's talks.

"We have cleared an obstacle in the first leg of a long process, but it's only the first leg," said a government spokesman.

"The prime minister is happy because the text has been improved, notably regarding those on lower pensions or with modest salaries," he added.

Metros and buses were slowly resuming a normal service on Friday and major traffic jams caused by extra cars had eased.

However, the major General Labour Confederation (CGT) has refused to take part in any negotiations and the Workers' Force (FO) - France's most powerful public sector union - walked out of Thursday's discussions.

"We must now amplify and enlarge our mobilisation," said Bernard Thibault of the CGT.

Testing the French

Former prime minister Alain Juppe said the pension plan reform was "a test of the capacity of the French society to accept change".

Mr Raffarin's government has refused to back down from its proposal to increase the number of years civil servants have to work to collect a full pension from 37.5 to 40 years.

Government leaders have warned that without the changes, the retirement system could collapse within 20 years.