France - strike

Postal service on strike

Article published on the 2009-09-22 Latest update 2009-09-22 10:19 TU

Parisian postal employees protest privatisation on 21 September
(Credit: AFP)

Nearly 1,000 demonstrators have hit the streets of Toulouse in southern France on Tuesday as part of an ongoing national strike to protest French Post Office privatisation. Local police dispute the number, saying that 500 protesters are out in force. Four postal service worker unions have called for a national strike Tuesday to protest the privatisation of the postal service. The status change is scheduled to go into effect in January, but workers are not wasting time to air their grievances.

Government officials deem this change necessary as part of cost-cutting measures, including the elimination of 7,500 jobs within the next six months. The plan will also close post office locations around the country.

By privatising the post office, the government will be able to sell shares on the French stock market, the CAC-40, and therefore inject badly needed cash into the company.

According to the Metro newspaper, letters count for 54.3 per cent of all post office business, to the tune of 20.8 billion euros. Sending packages constitutes a total of 20.6 percent of all transactions, while people who bank use the post office make up 22.9 per cent of revenue.

Profits have dropped in recent years, notably 44 per cent, a dip from 943 to 529 million euros between 2007 and 2008. The French Post Office predicts that business will fall by an additional 30 per cent by 2015.

The issue of privatisation will be discussed in Parliament at the end of October.