Strike at SNCF over opening of international freight to competition

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A strike called by seven trade unions took place at France's SNCF railway network in March 2003. The unions were protesting against the recent opening up of international freight transport by rail to competition within the EU. Discussions on the prevention of industrial disputes at SNCF have been taking place at the same time.

Seven trade unions representing workers at the French National Rail Company (Société nationale des chemins de fer français, SNCF) called a national strike from the evening of 17 March to the morning of 20 March 2003. The action was in protest at the opening up of international rail freight within the EU to competition (TN0003402S), which came into effect on 15 March, and the planned liberalisation of passenger rail transport, which is currently being discussed at EU level and may be implemented from 2008. The unions involved were the rail workers' federations of the General Confederation of Labour (Confédération générale du travail, CGT), the French Democratic Confederation of Labour (Confédération française démocratique du travail, CFDT), the General Confederation of Labour-Force Ouvrière (Confédération générale du travail-Force Ouvrière, CGT-FO), the French Christian Workers’ Confederation (Confédération française des travailleurs chrétiens, CFTC) and the National Federation of Independent Unions (Union nationale des syndicats autonomes, UNSA), along with the General Independent Federation of Locomotive Engineers (Fédération générale autonome des agents de conduite, FGAAC), the Federation of Railworkers’ Unions (Fédération des syndicats des travailleurs du rail) and the rail section of Solidarity, Unity, Democracy (Solidaires unitaires et démocratiques, SUD).

The French rail workers' strike coincided with international action over railway deregulation and attendant safety concerns organised in March by the International Transport Workers’ Federation (ITF) (EU0304202N).

Context

SNCF has undergone several major changes over recent years. In 1997, as a result of the application of EU regulations, the management of the rail network was taken over by French Rail Network (Réseau Ferré de France, RFF) (FR9702113N). In January 2002, SNCF handed over the management of regional rail lines to regional authorities. Now the liberalisation of international freight constitutes a sweeping change - although some foreign trains are already running in France under specific agreements, this has so far been marginal. Moreover, the latest liberalisation clears the way for other operators in a sector where SNCF has been losing part of its market share. Overall, 50,000 kilometres of track (out of a total of 150,000 kilometres) are involved and more than half of SNCF’s freight traffic.

SNCF management is relatively confident about dealing with the new situation, in view of past experiences abroad. The SNCF chair, Louis Gallois, feels that there will not be an immediate influx of new operators in France and that the volume of traffic involved should be limited. However, the impact on the company's finances might be more serious, as the new entrants to the market are interested in the most profitable lines.

Unions are not as confident as management. Denis Andlauer, the leader of the CFDT-affiliated rail federation, stated that 'the rail workers have the feeling that the company is not ready to deal with competition, since there are planned staffing cuts in the 2003 budget, especially in the area of freight.' In 2002, 1,000 new recruitments were frozen, and the SNCF budget for 2003 provides for 1,273 jobs to be cut. Indeed the 2003 budget was rejected by the unions. According to Didier Le Reste, general secretary of the CGT rail workers’ federation, this budget marks a break with the policy enacted by SNCF over the past few years. The SNCF business plan for 2003-5, approved on 19 March 2003 by the company board, has also been rejected by all the unions. SNCF freight lines lost around EUR 380 million in 2002, while a recent report on freight, written by Senators Haenel and Gerbaud, paints an alarming picture of the situation of freight transportation by rail in France.

Additionally, the rail workers' unions want to defend public services. They fear a downward spiral towards a 'UK-style' railway system, in which profitability takes priority over safety, and 'social dumping' that would threaten the long-term status of rail workers. Jean-Yves Petit of CFDT opposes 'allowing the flags of convenience-type system existing at sea to happen to the railways'. In a joint statement, the unions demanded that the government oppose the continued liberalisation of freight and passenger transport.

Plan to prevent industrial disputes

At the same time, discussions on the prevention of industrial disputes at SNCF have continued - an issue which is one of Mr Gallois’ priorities. Although the number of disputes has fallen since 1995 (with only 850 strike notices in 2000, the lowest level for 15 years), SNCF still accounts for almost a quarter of all days lost to strike action in France.

The outcome of six months of talks and three years of internal work on this issue was a draft agreement submitted by management to the unions in mid-March 2003. It proposes a 'social monitoring' (veille sociale) mechanism based largely on a 'social early warning' scheme set up at the Paris Transport Authority (Régie autonome des transports parisiens, RATP), which runs the Paris metro, after large-scale strikes in 1995. The scheme provides that if there is a difference of opinion, an initial meeting must take place between unions and management to extend the consultation period over the matter, if need be, to 10 working days (as opposed to the statutory five days, deemed too short by the management). During this period, meetings may be organised to avoid conflict. In the event of industrial action, an appropriate 'transport plan', designed by SNCF, would apply in order to 'ensure the reduced service more effectively'.

Responses

Commenting on the March strike, the junior transport minister, Dominique Bussereau, felt that there was 'no immediate reason for such a dispute', and that it was more to do with the forthcoming CGT national conference. This comment provoked a fierce response from CGT.

The SNCF chair, Louis Gallois, felt that the strike had come 'at the wrong time'. He stated that it had cost the company around EUR 20 million, at a time when the company had already recorded a deficit for 2002. Moreover, Mr Gallois stated that the strike was 'not exactly a boost for the draft agreement on the prevention of industrial disputes submitted for the unions to sign before early April'.

Unions generally agree that the draft agreement on the prevention of industrial disputes is not very restrictive, but most of them feel that the current strike notice period is being challenged, an accusation refuted by the management. CGT, CGT-FO and SUD-Rail are strongly opposed to it on the grounds that it threatens the right to strike. CFTC feels that the document submitted by the management is hollow and ineffective. It has, however, indicated its willingness to sign up in order to stave off direct government intervention to impose a minimum service during strikes. The same type of reaction can be seen at CFDT, which stated its readiness to sign up to the agreement, but only if a majority of unions support it.

So far only two minority unions at SNCF - CFTC and the French Confederation of Professional and Managerial Staff-General Confederation of Professional and Managerial Staff (Confédération française de l'encadrement-Confédération générale des cadres, CFE-CGC) - have signed the draft, while CGT, which is the largest union (on the basis of the most recent workplace elections of employee representatives - FR0104149F), has refused to do so.

Commentary

The SNCF managing director responsible for freight - a former cabinet chief of Jean-Claude Gayssot, the transport minister in the previous Jospin government - has recently resigned at the request of the chair of SNCF, suggesting that SNCF is to be reorganised by business area. Such a reorganisation would satisfy the recommendations of the Haenel-Gerbaud Senate report, which placed particular emphasis on the need for the freight business to be set up as an independent section. At the same time, the opening up of freight to competition has reopened the issue of the balance between rail and road.

The draft agreement on the resolution of industrial disputes may well be shelved. If it is, the initiative may be taken up in parliament by introducing a bill similar to one supported by deputies of the conservative majority in autumn 2002, which aimed to set up a guaranteed service for public transport during strikes. (Annie Jolivet, IRES)