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Last Updated: Tuesday, 29 June, 2004, 15:45 GMT 16:45 UK
Vote backs French power sell-off
French strikers
Power workers are worried about their jobs
France's National Assembly has backed a bill which paves the way for a partial sell-off of state-owned power firms, despite strikes by the firms' staff.

The bill, which would allow shares in Electricite de France and Gaz de France to be sold to private investors, needs Senate backing to become law.

As many as 6,000 workers took to the streets of Paris on Tuesday morning.

The disgruntled workers have cut about 7% of EdF's power output and pledged to continue disruptions, unions say.

Left-wing opposition deputies voted against the bill in the National Assembly.

But the government has a majority in the upper house as well, and is therefore thought likely to get the bill through.

Battle plan

Tuesday's action - the sixth day of strikes in the past three months - was called by four trade unions, who say the vote will not stop them from further disruption.

Employees have previously cut power supplies to Spain, the Eiffel Tower and the homes of politicians.

Early on Tuesday morning, protesters managed to shut down Bordeaux-Merignac airport for an hour and a number of large factories including Airbus's Toulouse plant, EdF said.

Power workers have also been reconnecting households that have failed to pay their bills.

"It's not the end of the action after the vote today," said Maurice Marion, a spokesman for the CGT trade union.

"It's not just a question of strikes but developing action that will cost the government and the firms."

Full steam ahead

Under the government's proposals EdF, Europe's largest power supplier, and sister gas company GdF will be transformed into limited liability firms, a key step to privatisation.

People have dumped old electricity meters in protest
Old electricity meters are getting dumped in protest

The next move would be to sell a 30% stake in EdF, using the proceeds to upgrade the national electricity network.

Unions, however, have voiced concerns that any sale would eventually lead to widespread redundancies, as well as the erosion of worker benefits, retirement rights and job security.

They also complain that public services should remain under state control and warn that privatisation will lead to higher prices.

Industrial action has been ongoing since 15 June and is expected to continue into July.

No shocks

EdF said that it would continue to talk to trade unions and underlined the fact that the change in the firm's status would not hurt employees.

An EdF representative explained to BBC News Online that the share sale was needed to help finance changes at the company.

From 1 July, France will open up its electricity market and EdF will face increased competition.

As well as allowing for a partial share sale, the government bill will also let EdF offer a wider range of products and services such as gas supply.


Have you been affected by the strikes? What is your view on the part-privatisation plans and the protests against them?

I have been slightly affected by the strikes as they disturbed most of Paris' metro. Nothing too problematic though, hardly any worse than the day to day hiccoughs in the service, not in any way comparable to the mayhem when transport workers go on strike almost every year. What I find noteworthy is that even the most hardline unions start denouncing "wildcat" actions such as shutting off power in St Lazare or through the Pyrenees to Spain. Clearly some EDF workers are overstepping a line.
Sylvain, Paris, France

After the brilliant "success" of rail privatization in the UK and the problems of supposedly more efficient privatized electricity companies in California, it makes me very sad that the French Government should be set on taking the same dangerous ideological track. The workers are not just concerned about their benefits, they are defending the vital principle of public service, which our liberalizing politicians are set on destroying.
Phil, Prevessin-Moëns, France

In France, only the protected occupations can go on strike with total impunity, without regard for their 'colleagues' of the private sector who work hard to pay for these 'privileges' of the public sector.
Eric, France/UK

The French trade unions have far too much power. They encourage dispute when conciliation could be achieved. Their motives are extremely selfish and they have not been able to offer any alternative solutions, other than perpetuating the ideal of a 'nanny' state which pays for everything. It is time the French government stopped pandering to their whims. Chirac needs to throw his weight behind his Prime Minister and present a united front. If he truly believes in liberalising the economy and making it more competitive, he needs to show commitment and act 'tough', something he is known for on the international scene.
Frederic, London, UK

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SEE ALSO:
French power workers stage strike
24 Jun 04  |  Business
France starts privatisation plan
18 Jun 04  |  Business
Strike hits French nuclear plants
16 Jun 04  |  Business
French power strikers target PM
15 Jun 04  |  Business


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