French workers agree to talk to industry ministry
21 July 2009

French workers at a parts supply factory have postponed their threat to blow it up after their union agreed to talks with the French industry ministry.

PSA and Renault are the main clients at the New Fabris factory in Chatellerault, central France. Workers had been threatening to blow up the plant using gas canisters after they received what they claimed was a derisory pay-off package when the firm entered bankruptcy.

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PSA and Renault have now agreed to buy New Fabris’ remaining shares on the condition that the money goes to the 366 redundant workers. But this would leave the workers with €6600 (£5700) each. Unions are demanding each employee receives €60,000 (£52,000).

Union leaders will now meet government officials on Thursday in an attempt to resolve the dispute. A union representative said, “We had to take this opportunity. Time is limited. But there has to be significant progress. The canisters are being stored and kept under surveillance and they can be re-installed at any time.”

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