Published on: 11/14/2024 – 6:09 p.m.

3 minutes

Workers in airlines, railroads, the public sector and other industries are bracing for action as they brace for a wave of job losses and spending cuts.

“We are at the beginning of a violent industrial bloodshed,” Sophie Binet, general secretary of the CGT, told the weekly. La Tribune Sunday.

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

The proposed strikes come as MPs continue to debate the proposed budget, which aims to reduce the deficit to 5 percent next year. France’s current account deficit sits above 6 percent, more than double the 3 percent limit set by the EU.

Prime Minister Michel Barnier’s plan aims to raise 60 billion euros, including 20 billion euros from new taxes and 40 billion euros from cuts.

What’s in France’s austerity budget and can it win support?

Air tax

The SNPL pilots’ union opened the ball with a strike on Thursday to protest against the planned tripling of the workforce. aviation levy on flights to and from France.

The new levy, which is expected to come into force in January 2025, aims to raise 1 billion euros per year. The SNPL warned that the tax would likely lead to job losses.

SNCF unions have also called for an indefinite strike starting next month, which could disrupt train service during the upcoming Christmas holidays.

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

In the public service, the FO and CGT unions called a strike following an unsuccessful meeting with the Minister of Public Administration Guillaume Kasbarian, with mobilization likely in early December.

The government has warned that more than 3,000 public sector jobs could be lost, alongside tougher sick leave rules.

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

French rail unions call for strike ahead of Christmas holidays

Business issues

Farmers are also planning new protests in Paris and Brussels next week against the Mercosur trade agreement between the EU and Brazil, Argentina, Paraguay and Uruguay.

The 25-year deal 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 of private companies in France worsened last week when two large employers announced layoffs.

Tire 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 “deterioration of 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 that it would cut 2,389 jobs due to massive losses, including the closure of around ten stores.

Franck Martineau, FO union representative at Auchan Retail, described this decision as “catastrophic”: “This will leave many employees and families in difficulty.”

French farmers plan new protests as Mercosur trade deal approaches

Budget rejected

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

“A majority of deputies reject both the budgetary blows and the impossibility for France to respect its European commitments,” declared Budget Minister Laurent Saint-Martin.

Barnier’s minority government now has room to submit a revised text to the Senate, where a final compromise could be found.

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

A downgrade could increase the cost of France’s debt, which currently costs 50 billion euros a year – second only to education in terms of public spending.