French energy unions threaten strikes next week over proposal to curb benefits, pay

French Energy Unions Threaten Strikes Next Week Amid Pay and Benefit Cuts

French Energy Sector Faces Industrial Action Over Court of Auditors' Recommendations

Background: Court of Auditors' Recommendations

PARIS, Sept 8 (Reuters) - French energy sector unions are preparing to strike next Tuesday over a July recommendation by France's Court of Auditors to limit wage growth and curb employee benefits such as access to cheaper gas and power, three union members told Reuters.

Strike notices have been filed at state-owned nuclear operator EDF, Belgian gas terminal operator Fluxys and French gas terminal operator Elengy.

Employee Benefits at Stake

Workers and retirees in the French energy sector pay discounted rates for gas and electricity, which their unions view as a core part of their compensation package. The court estimated this cost EDF over €700 million in lost revenue in 2024.

A spokesperson for EDF said that such preferential access to products and services is common among major companies and that employees value the energy-related benefit while encouraging responsible consumption.

"It is entirely appropriate for the company — whose industrial success relies heavily on employee commitment — to provide this type of benefit," the spokesperson said.

Potential Impact of Strikes

Disruption to Energy Supply

A strike could disrupt gas deliveries in Europe as the continent works to refill storage ahead of winter, and cause power cuts while wholesale electricity prices are unseasonably high.

France is Europe's largest importer of LNG cargoes, which are then transported across the continent. Nuclear power supplies around 70% of its electricity.

Future Strike Actions

Further strikes are possible after Tuesday's 24-hour action, a union source told Reuters.

Government and Company Responses

Government's Position

A government official said discussions were being held, with some changes considered, such as moving from a flat rate for cheaper energy to an allowance based on consumption, but that the government must comply with the Court of Auditors' guidance.

The court recommended phasing out energy benefits and limiting annual wage increases at EDF, which faces major investment costs as it upgrades its nuclear fleet and plans new reactors.

Union and Company Reactions

Union Expectations

In the gas sector, a CGT union member said a strong turnout was expected because of opposition to the auditors' recommendations.

Company Statements

Fluxys said it was too early to assess the impact on operations but there was no indication terminals outside France would be affected. Elengy confirmed that all of the trade unions represented in the energy sector have called for strike action but could also not indicate potential impacts.

(Reporting by Forrest Crellin and Elizabeth PineauEditing by Peter Graff and Tomasz Janowski)