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UPDATE 2-Talks between Total and French strikers collapse

Published 02/21/2010, 03:25 PM
Updated 02/23/2010, 09:29 AM

* Talks between Total and strikers suspended -- CGT

* CGT union calls for all French refineries to strike

* Total repeats no layoffs if Dunkirk refinery closes

* French oil sector body rules out imminent petrol shortages

(Adds details)

By Muriel Boselli and Mathilde Cru

PARIS, Feb 21 (Reuters) - Talks between Total and workers protesting the possible closure of the company's Dunkirk refinery in northern France collapsed on Sunday, the CGT union said, calling for a strike to spread to all French refineries.

"Talks have been suspended," said CGT official Charles Foulard after meeting with Total's management.

"We are going to call workers to intensify the movement ... as it seems that Total and the government aren't fully aware of the determination of the employees," Foulard added.

Eighty percent of Total's workers were on strike on Sunday.

"The unions have left the negotiating table but the propositions remain on the table ... but I think they won't discuss it," Francois Viaud, Total's head of human resources, told journalists.

Viaud repeated that there would be no layoffs if the Dunkirk refinery closed. Total was proposing roundtable discussions on the future of French refineries and hopes to outline investment plans for each of its refineries to employees on March 4, according to a document obtained by Reuters.

Workers are five days into an open-ended strike at Total's six French refineries. They want Europe's largest refiner to restart production at the Dunkirk refinery, where Total stopped output in September.

Total owns six out of France's 12 refineries and Exxon Mobil Corp -- whose workers plan to strike on Tuesday -- owns two. The remaining four refineries belong to British chemicals group Ineos, Petroplus and LyondellBasell Industries.

Total's 137,000 barrels-per-day (bpd) Dunkirk plant has been hit by low margins and poor demand -- a problem besetting many European refiners.

Total had put off a decision on whether to close Dunkirk from Feb. 1 -- a move analysts said aimed to avoid embarrassing the government before regional elections on March 14-21.

French Minister of Industry Christian Estrosi met Total Chief Executive Christophe de Margerie on Sunday and repeated the firm's promise that no redundancies would take place if Dunkirk was closed.

The CGT union said some stations could run out of petrol from Monday if no resolution was reached, though the French oil industry body UFIP has ruled out imminent shortages.

UFIP said on Friday that France has 10 to 20 days of fuel supplies in reserve. (Writing by Sophie Taylor; Editing by Kevin Liffey)

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