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The CGT union representing Total workers at Dunkirk described the decision as a first retreat by the oil company and called on Sarkozy to convene a round table to discuss the future of the refinery. BACK |
UNDER-PRESSURE TOTAL POSTPONES DECISION ON REFINERY
Received Monday, 1 February 2010 15:33:42 GMT
PARIS, Feb 1, 2010 (AFP) - French oil giant Total on Monday postponed a decision on the future of its refinery in northern France after coming under pressure from the government to save hundreds of jobs at the plant.
Industry Minister Christian Estrosi said "our wishes have been heard" after Total made the announcement at its headquarters at La Defense, west of Paris, where several hundred employees held a protest. Total has come under strong pressure from the government to keep jobs in France as the unemployment rate continues to climb, hovering near the 10-percent mark. President Nicolas Sarkozy promised during a primetime television appearance last week to bring down unemployment as surveys show it ranks as the number one concern of the French. Total in September cited a decline in sales of refined products for its decision to halt operations at its Flanders refinery near Dunkirk, which employs 370 people directly and 450 sub-contractors. Three months later, the oil giant said it was considering a move to shut down the facility, one of six refineries run by Total in France. Total had already come under fire last year when it announced plans to cut 555 jobs in France after turning a profit of 13.9 billion euros (19 billion dollars) in 2008. The company is due to report next week on its 2009 net earnings, which are expected to come to around 8 billion euros. Total said in a statement that the decision on the refinery in Dunkirk would be taken in June and pledged to guarantee jobs for the workers. "Without pre-judging the decision that will be taken," Total "is committed to guaranteeing each worker a job at Total consistent with his qualifications," said the company in a statement. For sub-contractors, "a certain number of services -- catering, cleaning -- will be maintained," said Michel Benezit, general director for refining and marketing. "All scenarios are still possible," he added, "but there is no question of the refinery continuing to treat crude oil." Sarkozy's governing right-wing party is heading into regional elections in March, hoping to gain ground from the opposition Socialists who control 20 of France's 22 regional councils. The CGT union representing Total workers at Dunkirk described the decision as a "first retreat" by the oil company and called on Sarkozy to convene a "round table to discuss the future of the refinery." Several hundred protesters -- 1,000 according to union officials -- converged on Total headquarters and briefly occupied the entrance, plastering the walls with union stickers. Workers at the Dunkirk refinery went on strike on January 12 to protest the planned closure of the site in an economically-depressed region of France. Government officials had drawn a parallel with carmaker Renault's plans to shift production of its new Clio model from France to Turkey. The government had opposed the plan and Sarkozy stepped in to personally ask Renault chief executive Carlos Ghosn to keep jobs in France. Unlike Renault, which is 15 percent owned by the French state, Total is a wholly private company although the state did have a stake in the oil giant's predecessor Elf. Previous stories in same thread:
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