UPDATE 1-France Tel signs part-time work deal with unions

*Plan allows workers nearing retirement to leave early

*One of series of measures to cope with worker suicides

*Plan could cost up to 1 billion, company said in Oct.

By Leila Abboud

PARIS, Nov 26 (Reuters) - France Telecom (FTE.PA) signed an accord with its labour unions on Thursday to create a part-time work scheme for older staffers, as it seeks to cope with a series of suicides that has shaken the group.

The plan was expected and has been in the works for several months.

Twenty-five workers have killed themselves at France Telecom since 2008, a rate which unions have blamed on restructuring and poor working conditions, although it is broadly in line with the French national norm.

Since August, France Telecom and its embattled CEO Didier Lombard have sought to quell a political and media firestorm over the suicides. The group has been negotiating with unions to come up with concrete measures, such as the part-time work plan signed on Thursday. The part-time work plan, which the firm earlier said could cost up to 1 billion euros ($1.51 billion), will allow staffers who are three years or less away from retirement to work part-time and keep a portion of their salary. [nLS8710]

France Telecom said on Thursday that about 14,000 workers would be eligible for the plan.

France Telecom signed the accord with four labour unions, the CFDT, CFTC, CGT and FO, which represent 68 percent of workers at the firm.

Lombard is also working on a new plan to reshape the telecom operator and give it a "new beginning" after the suicide controversy by focusing on big projects, such as bringing high-speed broadband to all of France. [nLJ444680]

(Editing by Dan Grebler)

((leila.abboud@thomsonreuters.com; + 33 1 49 49 51 82; Reuters Messaging: leila.abboud.thomsonreuters.com@reuters.net))

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