The French government on Tuesday extended a tumultuous weeks-long blockade of French oil refineries demanding wages paid by workers at oil giants Total Energies and Exxon-Mobil Co. tried to control the growing crisis that left 1 of them without fuel. catch up with rapid inflation.
Prime Minister Elisabeth Born said Tuesday she will order essential workers at Esso-ExxonMobil, the French arm of the American oil company, to return to their refineries and restart the flow of gasoline. The shortage has caused congestion at gas stations reminiscent of the 1970s oil crises, causing chaos among drivers, delivery companies, ambulances, transport companies and taxis.
But President Emmanuel Macron’s government’s return-to-work order has sparked a confrontation with France’s hardline Confederation of Trade Unions (CGT), which represents a de facto bloc of workers at both oil companies.
“I can assure you that there will be war,” CGT senior energy officer Emmanuel Lépine said in an interview with Franceinfo Radio. “If Macron wants to spread this to other parts of the economy, let him do it.” The union said it would suspend all dialogue with the government.
The strike is now in its second week, making it the longest strike in Europe this year. These highlight the frustration that has been building up in a cost of living crisis that has sharply worsened as Russia’s war in Ukraine has sent energy and food prices skyrocketing.
Europe’s inflation hit an all-time high Macron’s government has spent nearly €100bn to subsidize energy bills for homes and businesses since November, so just over 6% in France is lower than in other countries, but 10% compared to a year ago. The government also subsidizes the price of gas directly at the pump.
That said, French households are becoming increasingly burdened by rising food and gas prices. Labor unions at Total Energies and ExxonMobil also pointed to the substantial profits earned by the two companies as a result of the fuel price spike.
The TotalEnergies union is demanding a 10% wage increase. 7% to offset inflation and 3% to distribute his $10 billion in profits the company earned in the first half of this year.
At ExxonMobil, French unions are calling for a 7.5% pay rise and €6,000 (about $5,860) in bonuses to share a portion of the company’s $18 billion profit from January to June. .
Workers have blocked five of France’s eight major refineries for nearly two weeks, picketing for higher wages, refusing trucks to pass and setting tires on fire to make their case.
Exxon Mobil’s French operations said on Monday it had reached a salary agreement with two trade unions representing the majority of workers at its site. Under the deal, the union agreed to a proposal for his 6.5% pay rise next year and his €3,000 bonus.
But the more militant CGT union said it did not agree to the deal, adding that members would continue to strike for higher wages. Total Energies this weekend offered to hasten the start of contract negotiations, which were due to start in November, on the condition that the strike ends, an offer CGT called “blackmail”.
The confrontation has heightened the stakes of Mr Macron, who had planned to move quickly on a controversial proposal to reform the country’s complex pension system, including raising the retirement age. , was forced to postpone its initiative amid tumultuous street protests against it.
On Friday, Mr Macron called for calm and appealed to unions and businesses to end the refinery strike. “Let’s not panic,” he said on French television, adding that oil company executives should consider workers’ “legitimate salary demands”.
Fuel prices are a sensitive issue in France as they are linked to the 2019 Yellow Vests movement. The movement saw tens of millions of French take to the streets across the country to protest government plans to tax fuel when the cost of living was already low. It is out of reach for ever-growing households.