FRANCE: Union leaders at France's state-owned railways yesterday raised the spectre of strikes in the new year after management rejected demands for pay rises.
"There's nothing on wages, so unions will meet in January on what action should be taken," the federal secretary of the CGT union (Confederation Generale du Travail), Mr Laurent Russeil, said.
His union has been calling for some time for a day of action on January 21st, the day when France's SNCF board meets to discuss its 2004 budget.
SNCF management said it could not satisfy demands for a retroactive pay rise for 2003 because of a deficit that would be even bigger than the €144 million loss forecast for 2003.
It said in a statement that management was willing to meet unions in January to discuss 2004 pay, but could do nothing on 2003 because of its deficit and a business plan designed to compensate for losses incurred by strikes earlier this year.
Another union representing train drivers said the refusal to meet pay demands "heralds a sombre year" in 2004 for industrial relations at the railways, which employ more than 180,000 staff.
The cash-strapped conservative government has taken a tough line on public sector pay as it struggles to rein in a national deficit that has sparked feuding over France's lack of respect for the EU's Stability and Growth Pact on deficit control.
British rail unions yesterday called off tube strikes planned for Christmas Eve and New Year's Eve after the intervention of the conciliation service. The Rail Maritime and Transport union suspended industrial action prompted by the dismissal of a colleague who was seen leaving a squash court while on sick leave. - (Reuters)