</s>PARIS (Reuters) - France’s parliament overwhelmingly approved a bill overhauling the indebted state-run rail company SNCF on Wednesday, handing a significant victory to President Emmanuel Macron in his bid to outflank the unions and reform the economy.

The 452 to 80 vote in the National Assembly, where Macron’s Republique En Marche party has an absolute majority, was largely a formality after a committee of the lower house and the Senate agreed joint amendments to the legislation on Monday.

The Senate upper house will approve the bill on Thursday.

It represents the most fundamental reform of the 150,000-strong SNCF since rail nationalization in the 1930s, and Macron has overcome a challenge that defeated previous administrations.

Conservative Prime Minister Alain Juppe had to withdraw welfare reforms in 1995 after weeks of strikes and social unrest led by rail workers.

The new law will turn the SNCF into a joint-stock company, giving its management greater corporate responsibility, will phase out its domestic passenger monopoly from 2020 and put an end to generous benefits and pensions for future employees.

At the same time, the government has committed not to sell any of the stock, a move to reassure unions that it won’t be privatized.

“The government has committed itself to our rail industry as no other has before us,” Transport Minister Elisabeth Borne told FranceInfo radio on Tuesday. “I now urge the unions to take stock of their responsibilities.”

The government has also said it will write off 35 billion euros of the SNCF’s 47 billion euros ($55 billion) of debt, giving the company more room to maneuver and prepare for greater competition from other European operators.

View shows the voting results board in favor of the French government's SNCF reform bill at the National Assembly in Paris, June 13, 2018. REUTERS/Benoit Tessier

AN OVERPLAYED HAND?

France’s rail unions have been staunchly opposed to the reforms. In April they began three months of rolling strikes in protest, shutting down local, regional and international services for two days out of every five. Those stoppages are set to run until the end of June.

At the start, the public expressed some sympathy — polls showed more than half of those surveyed thought the strikes were justified — but support has waned over time. Commuters have grown fed up with the disruptions and found ways around them, using car-sharing apps, telecommuting or cycling to work.

Gaps in the unions’ position have also emerged and been exploited — a tactic Macron used to sound effect last year in securing the backing of the largest union, the CFDT, for reforms to the labor code to make hiring and firing easier.

The CFDT, the most moderate of the larger unions as well as the biggest, has signaled it will accept the SNCF bill once it becomes law. When the rolling strikes end on June 28, its railworkers are expected to return to work.

The more militant CGT union remains firmly against, with 95 percent of its members voting against the legislation last month. Employees represented by the union have said they will pursue wildcat strikes from July.

But their ability to cause widespread disruption or win public sympathy appears limited. Many CGT unionists are among those who have gradually given up adhering to the strike.

For a graphic see tmsnrt.rs/2JnAdwO

“I think the unions may have overplayed their hand here,” said Bob Hancke, a professor of European political economy at the London School of Economics, describing the SNCF as “one of the last bastions of union power in France”.

Slideshow (13 Images)

A change in public sentiment toward organized labor — part of a broader social shift as younger people increasingly engage in the ‘gig’ economy and see the future in technology — has left the unions looking out of touch.

But Hancke warns that while it is an important symbolic victory for Macron, it may do little to improve the business climate in France or stimulate much-needed growth.</s>French ministers and members of parliament leave the questions to the government session prior to the vote for the French government's SNCF reform bill at the National Assembly in Paris Thomson Reuters PARIS (Reuters) - France's National Assembly voted overwhelmingly in favor of a bill to overhaul the state-run SNCF railway company on Wednesday, backing President Emmanuel Macron's efforts to break the unions and reform the economy.

The bill, which the upper house Senate will approve in a vote on Thursday, turns the SNCF into a joint-stock company, giving its management greater corporate responsibility, will phase out its domestic passenger monopoly from 2020 and put an end to generous benefits and pensions for future employees.

The legislation, the most fundamental reform of the 150,000-strong company since nationalization in the 1930s, has been pushed through over the objections of unions, who have carried out nearly three months of strikes against the reforms.</s>France's lower house National Assembly voted Wednesday to approve a controversial reform of state rail operator SNCF despite weeks of rolling strikes and sporadic protests. The bill goes to the Senate for a final vote on Thursday.

French lawmakers on Wednesday overwhelmingly backed a controversial reform of indebted state rail operator SNCF, handing President Emmanuel Macron a key victory in his battle with trade unions.

The vote in the National Assembly is a blow to the labour movement, which called three months of rolling strikes over the bill, the longest industrial action in over 30 years on French railways.

Members of the lower house of parliament, where the ruling party has a large majority, adopted the bill by 452 votes for to 80 against and 27 abstentions.

The bill now goes to the Senate for a final vote on Thursday.

Analysts have compared the standoff between the centrist Macron and French railworkers with Margaret Thatcher's showdown with British miners in the 1980s.

It is being closely watched as a sign of Macron's ability to face down France's unions, which have had success in pressuring previous governments to withdraw, or significantly water down, unpopular reforms.

Train drivers particularly had resisted plans to deny job and pension guarantees to new rail recruits, as well as plans to turn the SNCF into a joint-stock company, which they see as a first step toward privatisation.

The government argues the loss-making SNCF -- a bastion of the union movement -- needs to cut costs and improve flexibility before the EU passenger rail market opens up to competition.

A poll showed voters largely on board with the changes, unswayed by 30 days of strikes since early April that have caused headaches for millions of travellers on two days out of every five.

The SNCF has estimated the cost of the walkouts at 400 million euros ($470 million).

Labour leaders refused to concede victory on Wednesday, announcing that the strikes would continue as planned until June 28.

"This strike is far from over," Philippe Martinez of the hardline CGT, France's biggest public sector union, said.

But the movement has been showing signs of fatigue, with the number of strikers steadily tapered off in recent weeks.

An estimated 12.78 percent of workers walked off the job on Wednesday, down from around 34 percent in April.

Union leaders can claim to have won several concessions, including job guarantees for existing staff if they take a position with a new operator arriving in France.

The government has also pledged take on 35 billion euros of SNCF debt and to not sell off the newly created SNCF shares.

In return, the unions have agreed to begin talks on a new collective labour agreement.

Having refused to back down on the key elements of his plan, Macron may have cleared his path for equally tricky reforms to France's strained pension system and vast public sector.

"For Emmanuel Macron and (Prime Minister) Edouard Philippe, this political victory against a fortress long deemed unassailable (the SNCF) changes everything," the rightwing Figaro newspaper wrote in an editorial Monday.

"Along with the reform of the labour code, the SNCF reform shows that France is not hopelessly condemned to stagnation," it added.</s>PARIS (Reuters) - France’s National Assembly voted overwhelmingly in favor of a bill to overhaul the state-run SNCF railway company on Wednesday, backing President Emmanuel Macron’s efforts to break the unions and reform the economy.

The bill, which the upper house Senate will approve in a vote on Thursday, turns the SNCF into a joint-stock company, giving its management greater corporate responsibility, will phase out its domestic passenger monopoly from 2020 and put an end to generous benefits and pensions for future employees.

The legislation, the most fundamental reform of the 150,000-strong company since nationalization in the 1930s, has been pushed through over the objections of unions, who have carried out nearly three months of strikes against the reforms.</s>The French Senate upper house has passed the SNCF reform, which is aimed to open the railway market for competition and put an end to the special status of rail workers, giving them some benefits, including early retirement. The day before, the bill was approved by the majority of the National Assembly (452 to 80 vote).

After the law comes in force, the SNCF will become a joint-stock company, providing its management greater corporate responsibility.

The legislation, proposed by French President Emmanuel Macron, is a part of his tremendous plans to outmaneuver trade unions and to reform the economy.

Commenting on the legislation, the country's Transport Minister Elisabeth Borne stated to FranceInfo radio Tuesday that the government was not going to sell its stocks.

"The government has committed itself to our rail industry as no other has before us," Borne said. "I now urge the unions to take stock of their responsibilities."

The French government stated that it was planning to write off 35 billion euros of the SNCF's 47 billion euros ($55 billion) of debt, helping the company to prepare for competition from other European operators.</s>France’s parliament overwhelmingly approved a Bill overhauling the indebted state-run rail company SNCF on Wednesday, handing a significant victory to President Emmanuel Macron in his bid to outflank the unions and reform the economy.

The 452 to 80 vote in the National Assembly, where Mr Macron’s République En Marche party has an absolute majority, was largely a formality after a committee of the lower house and the senate agreed joint amendments to the legislation on Monday.

The senate upper house will approve the Bill on Thursday.

It represents the most fundamental reform of the 150,000-strong SNCF since rail nationalisation in the 1930s, and Mr Macron has overcome a challenge that defeated previous administrations.

Conservative prime minister Alain Juppé had to withdraw welfare reforms in 1995 after weeks of strikes and social unrest led by rail workers.

The new law will turn the SNCF into a joint-stock company, giving its management greater corporate responsibility, will phase out its domestic passenger monopoly from 2020 and put an end to generous benefits and pensions for future employees.

At the same time, the government has committed not to sell any of the stock, a move to reassure unions that it won’t be privatised.

“The government has committed itself to our rail industry as no other has before us,” transport minister Elisabeth Borne told FranceInfo radio on Tuesday. “I now urge the unions to take stock of their responsibilities.”

The government has also said it will write off €35 billion of the SNCF’s €47 billion of debt, giving the company more room to manoeuvre and prepare for greater competition from other European operators.

France’s rail unions have been staunchly opposed to the reforms. In April they began three months of rolling strikes in protest, shutting down local, regional and international services for two days out of every five. Those stoppages are set to run until the end of June.At the start, the public expressed some sympathy – polls showed more than half of those surveyed thought the strikes were justified – but support has waned over time. Commuters have grown fed up with the disruptions and found ways around them, using car-sharing apps, telecommuting or cycling to work.

Gaps in the unions’ position have also emerged and been exploited – a tactic Mr Macron used to sound effect last year in securing the backing of the largest union, the CFDT, for reforms to the labour code to make hiring and firing easier. – Reuters</s>The head of France's main rail union on Friday announced it would extend months of rolling strikes into July even though the reforms it is protesting have been adopted by parliament.

The CGT Cheminots union and others have been striking every few days since early April over President Emmanuel Macron's controversial rail reforms, causing disruption for France's 4.5 million daily train commuters.

But parliament on Thursday gave final approval to Macron's overhaul of debt-laden state rail operator SNCF, handing him victory in a standoff that commentators have compared to former British premier Margaret Thatcher's battle with coal miners' unions in the 1980s.

Unions had planned to call off the strike on June 28, but CGT Cheminots chief Laurent Brun said his members would carry on with their walkouts into the busy summer season.

"We will carry on in July," he told France Info radio ahead of meetings Friday with the government and management to discuss a new labour agreement under the reformed SNCF.

"For how long? We'll see. How? We'll see. There is no question of stopping according to the schedule, so long as the government is trying to force its way through," he said.

Brun added that his union would try to find a way of alleviating the cost of lost pay for strikers, after 30 separate days of disruption.

Unions failed to win over public opinion during the strikes, and participation by rail workers dwindled with just 12.8 percent of SNCF staff taking part in the most recent walkout on Wednesday, down from around 34 percent in April.

Unions have been resisting plans to end life-long job security to new recruits, as well as plans to turn the SNCF into a joint-stock company, which they saw as a first step toward privatisation despite government denials.

Macron argues the SNCF, saddled by debts of some €47 billion ($55 billion), needs to cut costs and improve flexibility before the EU passenger rail market is opened up to competition.

Union leaders can claim to have won some concessions, including job guarantees for existing staff if they take a position with a new operator arriving in France.

The government has also pledged to take on €35 billion of SNCF debt and to not sell off the newly created SNCF shares.</s>French lawmakers on Thursday gave final approval to a controversial reform of indebted state rail operator SNCF, handing President Emmanuel Macron a key victory in his battle with trade unions.

The vote in the Senate is a blow to the labour movement, which called three months of rolling strikes over the bill, the longest industrial action on French railways in over 30 years.

The bill also cleared the lower house of parliament in an earlier vote on Wednesday.

Analysts have compared the standoff between the centrist Macron and French railworkers with Margaret Thatcher's showdown with British miners in the 1980s.

It is being closely watched as a sign of Macron's ability to face down France's unions, which have had success in pressuring previous governments to withdraw, or significantly water down, unpopular reforms.

Train drivers particularly had resisted plans to deny job and pension guarantees to new rail recruits, as well as plans to turn the SNCF into a joint-stock company, which they see as a first step toward privatisation.

The government argues the loss-making SNCF -- a bastion of the union movement -- needs to cut costs and improve flexibility before the EU passenger rail market opens up to competition.

A poll showed voters largely on board with the changes, unswayed by 30 days of strikes since early April that have caused headaches for millions of travellers on two days out of every five.

The SNCF has estimated the cost of the walkouts at 400 million euros ($470 million).

Labour leaders have refused to concede victory, announcing that the strikes would continue as planned until June 28.

"This strike is far from over," Philippe Martinez of the hardline CGT, France's biggest public sector union, said.

But the movement has been showing signs of fatigue, with the number of strikers steadily tapering off in recent weeks.

An estimated 12.78 percent of workers walked off the job on Wednesday, down from around 34 percent in April.

Union leaders can claim to have won several concessions, including job guarantees for existing staff if they take a position with a new operator arriving in France.

The government has also pledged to take on 35 billion euros of SNCF debt and to not sell off the newly created SNCF shares.

Having refused to back down on the key elements of his plan, Macron may have cleared his path for equally tricky reforms to France's strained pension system and vast public sector.

"For Emmanuel Macron and (Prime Minister) Édouard Philippe, this political victory against a fortress long deemed unassailable [the SNCF] changes everything," the rightwing Figaro newspaper wrote in an editorial Monday.

The 40-year-old president has eased labour protections since taking office a year ago. He has also scrapped a wealth tax, saying the move was needed to spur growth, earning the moniker “president of the rich”.</s>The vote in the National Assembly is a blow to the labour movement, which called three months of rolling strikes over the bill, the longest industrial action in over 30 years on French railways.

Analysts have compared the standoff between the centrist Macron and French railworkers with Margaret Thatcher's showdown with British miners in the 1980s.

It is being closely watched as a sign of Macron's ability to face down France's unions, which have had success in pressuring previous governments to withdraw, or significantly water down, unpopular reforms.

Train drivers particularly had resisted plans to deny job and pension guarantees to new rail recruits, as well as plans to turn the SNCF into a joint-stock company, which they see as a first step toward privatisation.

The government argues the loss-making SNCF -- a bastion of the union movement -- needs to cut costs and improve flexibility before the EU passenger rail market opens up to competition.

A poll showed voters largely on board with the changes, unswayed by 30 days of strikes since early April that have caused headaches for millions of travellers on two days out of every five.

The SNCF has estimated the cost of the walkouts at 400 million euros ($470 million).

Labour leaders refused to concede victory on Wednesday, announcing that the strikes would continue as planned until June 28.

"This strike is far from over," Philippe Martinez of the hardline CGT, France's biggest public sector union, said.

But the movement has been showing signs of fatigue, with the number of strikers steadily tapered off in recent weeks.

An estimated 12.78 percent of workers walked off the job on Wednesday, down from around 34 percent in April.

Union leaders can claim to have won several concessions, including job guarantees for existing staff if they take a position with a new operator arriving in France.

The government has also pledged take on 35 billion euros of SNCF debt and to not sell off the newly created SNCF shares.

In return, the unions have agreed to begin talks on a new collective labour agreement.

Having refused to back down on the key elements of his plan, Macron may have cleared his path for equally tricky reforms to France's strained pension system and vast public sector.

"For Emmanuel Macron and (Prime Minister) Edouard Philippe, this political victory against a fortress long deemed unassailable (the SNCF) changes everything," the rightwing Figaro newspaper wrote in an editorial Monday.

"Along with the reform of the labour code, the SNCF reform shows that France is not hopelessly condemned to stagnation," it added.
The Senate of France approves a bill to reform the SNCF railway company. The French state writes off €35 billion of SNCF's €47 billion debt, but remains the sole owner of the joint-stock company with two subsidiaries: operator SNCF Mobility and infrastructure manager SNCF Network.