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Wave of strikes brewing as French budget cuts anger unions

Michelin employees hold placards during a demonstration in Clermont-Ferrand, central France, on 13 November 2024. The tyre manufacturer announced the closure of two factories by 2026. AFP - OLIVIER CHASSIGNOLE

French unions across multiple sectors are calling for strikes and protests in the coming weeks, driven by frustration over planned layoffs and budget reforms. The government has proposed €60 billion in cuts and tax hikes to tackle the country's debt.

Workers in airlines, railways, the public sector and other industries are gearing up for action as they brace for a wave of job losses and spending reductions.

“We are at the start of a violent industrial bloodletting," Sophie Binet, general secretary of the CGT union, told the weekly La Tribune Dimanche.

The CGT estimates that at least 150,000 jobs could be cut in the coming years, potentially creating a "domino effect" that could impact subcontractors.

The proposed strikes come as MPs continue debating the draft budget, which is aimed at reducing the deficit to 5 percent next year. France’s current deficit sits above 6 percent – more than double the 3 percent limit set by the EU.

Prime Minister Michel Barnier’s plan seeks to raise €60 billion, with €20 billion from new taxes and €40 billion from cuts.

What’s in France’s belt-tightening budget and can it win support?

Airline levy

The SNPL pilots union got the ball rolling with a strike on Thursday to protest a planned tripling of the aviation levy on flights to and from France.

The new levy, expected to take effect in January 2025, aims to raise €1 billion annually. SNPL warned the levy would likely lead to job cuts.

Trade unions at France's railway operator SNCF have also called for an indefinite strike from next month that could disrupt train services during the upcoming Christmas holidays.

The unions are pushing for a halt to the planned dismantling of SNCF’s freight division, Fret SNCF, and resisting conditions tied to opening up regional passenger lines to competition. A shorter strike is planned from 20-22 November.

In the civil service, unions FO and CGT have called for strikes following an unsuccessful meeting with Public Administration Minister Guillaume Kasbarian, with mobilisation likely in early December.

The government has warned that over 3,000 public sector jobs could be cut, alongside stricter sick leave rules.

Absenteeism in the public sector has reportedly risen, with days lost increasing from 43 million in 2014 to 77 million in 2022.

French rail unions call for strike action ahead of Christmas holidays

Trade woes

Farmers are also planning fresh protests in Paris and Brussels in the coming week against the Mercosur trade deal between the EU and Brazil, Argentina, Paraguay and Uruguay.

Twenty-five years in the making, the agreement would create the world’s largest free trade zone, but French farmers fear an influx of cheap agricultural products. Barnier called the deal “unacceptable for France”.

The economic situation for private companies in France worsened last week as two major employers announced layoffs.

Tyre manufacturer Michelin announced the closure of two factories in western France by 2026, impacting 1,254 employees.

Michelin, which employs nearly 19,000 people in France, blamed competition from Asian manufacturers and Europe’s “worsening competitiveness” due to rising inflation and energy costs.

Economy Minister Antoine Armand said the government would “do everything in its power to help find a buyer” for the sites.

Supermarket chain Auchan also announced it would cut 2,389 jobs due to massive losses, including closing around 10 stores.

Franck Martineau, FO union representative for Auchan Retail, called the decision "catastrophic," saying: “This will leave many, many employees and families in difficulty”.

French farmers plan fresh protests as Mercosur trade deal looms

Budget rejected

On Tuesday, French MPs rejected the government’s draft budget, heavily amended with opposition-led tax increases.

“A majority of MPs rejects both fiscal battering and the impossibility of France living up to its European commitments,” said Budget Minister Laurent Saint-Martin.

Barnier’s minority government now has leeway to submit a revised text to the Senate, where a final compromise may be reached.

As global rating agencies consider downgrades to France’s credit rating, Barnier hopes to restore confidence in the country’s economic stability.

A downgrade could raise the cost of France’s debt, currently costing €50 billion annually –second only to education in government spending.

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