French Unions to Stage 20 June Strike Over Planned Gaz de France, Suez Merger

Three French unions will join together on 20 June in a strike aimed at backing the government from its proposed merger of state-operated Gaz de France with Suez, a French-Belgian water and power company. Energy sections of CGT, FO and CFE-CGC have planned work stoppages and mass demonstrations for that day.

The government-brokered merger, proposed by Prime Minister Dominique de Villepin in order to block a hostile takeover of Suez by Italian energy company Enel, would break a pledge contained in a 2004 French law stating that at least 70% of Gaz de France would remain in state hands. If the €72 billion merger with Suez does occur, only 34% of the combined enterprise would remain under state control.

Trade unions in France received a boost last week in their efforts to block the merger when French Interior Minister Nicolas Sarkozy said the proposal was losing support among lawmakers and government leaders. The day-long strike and demonstrations are timed to coincide with debate beginning this week in Parliament over legislation to authorise the merger.