Explosion threat at French auto firm

WORKERS AT a failed French car parts supplier are threatening to blow up the factory unless the firm’s two biggest clients – …

WORKERS AT a failed French car parts supplier are threatening to blow up the factory unless the firm’s two biggest clients – Renault and PSA Peugeot Citroën – pay compensation.

Employees of New Fabris have rigged a series of gas canisters, which they say will be detonated on July 31st if the carmakers fail to pay €30,000 to each of the 366 workers.

The company, which went into receivership for the second time in two years last month, holds an estimated €2 million of stock, as well as a machine belonging to Renault valued at about €2 million.

Government officials said there appeared to be some doubt as to whether the canisters were full. Nonetheless, it was taking the threat seriously, fearful that the latest hold-up marks a significant increase in tensions in the industry. The fire brigade was on standby and police reinforcements sent to the factory at Châtellerault.

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This year, France was hit by a wave of boss-nappings, where workers held factory managers hostage to force better pay-offs or protest at closures.

Most ended without violence, but there is concern that tensions could rise in the autumn, when unemployment and company failures are expected to increase.

Christian Estrosi, industry minister, invited workers to meet him to discuss the situation, but yesterday withdrew the invitation, saying he would not negotiate while the threat remained in place.

Guy Eyermann of the CGT union that appears to be leading the protest insisted the battle would not be abandoned. “Are we capable of blowing up the factory? Yes,” he told a group of 100 workers yesterday.

Renault and Peugeot insisted yesterday that they would not give in to the threats. – FT Service