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Total's French Refineries Workers Extend Week-Long Strike

Totals French Refineries Workers Extend Week-Long Strike
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Παρ, 20 Δεκεμβρίου 2013 - 17:29
Workers at Total SA's (TOT) refineries in France voted to extend a week-long strike to demand higher pay as European refiners are cutting capacity in an industry hurt by stagnant demand and rising competition from abroad.
Workers at Total SA's (TOT) refineries in France voted to extend a week-long strike to demand higher pay as European refiners are cutting capacity in an industry hurt by stagnant demand and rising competition from abroad.

Workers at four refineries owned by Total and three other petrochemical facilities in France , walked out last week to demand pay rises higher than the ones offered by the company, Eric Sellini, the representative of the CGT union for Total told The Wall Street Journal.

"Two refineries have stopped and workers at the refineries at Donges and Feyzin are in the process of shutting the operation down, so they will stop in a couple of days," Mr. Sellini said. "Meanwhile no refined products are exiting the plants."

The four refineries represent about half the capacity in France but there is no fear of a shortage, Total said.

The strike underscores the tension between the company and some of its workers as Total has been cutting its refining capacity over the past couple of years, citing falling profitability. For just refining activities, Total expects to lose 500 million euros ($682 million) in 2013. The industry in Europe suffers from dwindling demand due to weak economic growth and rising competition from Asia , the Middle East and North America , where costs are lower. Total's chief executive, Christophe de Margerie, has said the company will likely close capacities in the near term.

Total had offered its workers a general pay increase of 1.5%. In addition, the company proposed boosting its entire payroll by 1.2% in selective merit increases. It also offered a rise of up to 0.8% based on seniority. Although a majority of workers in the unions accepted the rise, about 20% of the workers are on strike, Total said.

The workers originally considered the pay increases too low given the company's "fabulous" profits. The CGT union first demanded a 2.5% raise to all workers or demanded an increase of the same amount for all the workers, Mr. Sellini said.

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