Union plans strategy to oppose Suez-GDF merger

Mon Sep 3, 2007 6:02am EDT
 
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PARIS (Reuters) - France's largest energy union CGT said on Monday it was making contacts with other unions and consumer groups to devise a strategy to oppose the merger of Gaz de France GAZ.PA and Suez (LYOE.PA).

"We haven't yet defined actions, but our aim is to stir up public opinion against the merger," said a spokesman for the CGT.

On Monday GDF and Suez cleared the way to create the world's third-largest electricity and gas company after their boards approved the revised terms of a politically charged merger.

Unions such as the CGT oppose the effective privatization of GDF.

"The privatization ... would hand over the company (GDF) to greed that would ask for the end of regulated gas tariffs," the CGT said in a statement.

"Consumers can expect a rise in their gas bills if the project takes place," it added.

Asked whether the union would organize strikes, the spokesman replied: "Striking is one possibility we are looking at, but even if we went on strike for six months it wouldn't change much," he added.

French energy unions have run a series of strikes since 2006 to protest against the privatization of GDF, cutting some power capacity from nuclear power plants, but they have had limited impact on power prices.

 

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