Paris — Workers at a TotalEnergies (TTEF.PA) biorefinery and a fuel depot in northern France have ended their strikes, a CGT union official said on Thursday, as a near-month-long wave of industrial action over pay appeared to run out of steam.
Staff at the La Mede refinery and Cote d’Opal depot in Dunkirk had voted to resume working, CGT representative Eric Sellini said, though strikes continued at the 240,000 barrel per day Gonfreville refinery and 119,000 bpd Feyzin site.
The weakening strike movement will allow fuel distribution to product-starved service stations, bringing relief to households and businesses, though it may be two to three weeks before refineries are fully operational.
One out of five petrol stations in France is still grappling with shortages. Supplies had begun to improve even before the strikes ended after the government boosted imports and requisitioned some staff after weeks of disruption.
“We have been seeing a significant improvement of the situation,” government spokesperson Olivier Veran told LCI television.
Coming amid a Europe-wide energy crisis that has sent prices spiraling higher, the strikes have become President Emmanuel Macron’s stiffest challenge since his April reelection.
Signs which read “out of order” are seen on gasoline pumps at a closed gas station in Paris
French petrol refineries and fuel crisis in France
Signs which read “out of order” are seen on gasoline pumps at a closed gas station in Paris
The logo of French oil and gas company TotalEnergies is seen at the company’s headquarter skyscraper in La Defense near Paris, France, October 12, 2022. REUTERS/Gonzalo Fuentes
Refinery and fuel depot workers at TotalEnergies and ExxonMobil (XOM.N) had been demanding sharp pay increases to help cope with a cost-of-living crisis.
ExxonMobil’s local business, Esso France, earlier this month agreed a 6.5% salary increase in 2023 and a 3,000 euro ($2,916) bonus. Days later, TotalEnergies, which has earned bumper profits as fallout from Russia’s war in Ukraine sent energy prices surging, struck a wage agreement with most of its unions for an average pay rise of 7% next year.
However, the hardleft CGT union, which had asked for a 10% rise, did not back the agreements. The CGT did not immediately respond when asked what terms the strikers would find acceptable for returning to work.
The strikes and unplanned maintenance have forced more than 60% of France’s refining capacity offline.
Energy industry analysts said the refinery strikes had given temporary relief to crude markets in Europe but created pent-up demand for future months when refined product supply is set to be tight.
Esso France said this week work was underway to restart its Gravenchon and Fos-sur-Mer refineries but that it would be two to three weeks before normal operations resumed.
Strikes over wages have spread to France’s nuclear sector ahead of negotiations between the CGT-FNME and state-run utility EDF (EDF.PA).
*Tassilo Hummel & Richard Lough; Editing: Mark Potter & Bernadette Baum – Reuters
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