French Workers Threaten to Blow Up Factory Unless Paid

GOING OUT WITH A BANG? Fake graves outside the bankrupt New Fabris factory show the number of years that people have been with the company. Ex-employees are threatening to blow up the plant if their requests for lost-job compensation and indemnity from prosecution are not met by July 31, 2009. Image: AFP

As media talking heads and government officials continue deceiving the public with "green shoot" lies, the anger-wrought masses are beginning to take things into their own hands. Employees of New Fabris in central-eastern Chatellerault -- a bankrupt French car-parts supplier -- are threatening to blow up their factory unless Renault and Peugeot pay them compensation. AFP reports a union official said on Sunday that the 366 employees of New Fabris were occupying the plant and demanding that the automakers, which accounted for 90 percent of their business, pay €30 000 - nearly R350 000 - to each worker.

"The gas bottles are in the factory. Everything has been planned for it to blow up unless there is an accord by July 31," Guy Eyermann, CGT union official and secretary of the company works council, told AFP. The Chatellerault factory is believed to have car parts worth some two million euros, as well as a new Renault machine estimated at another two million.

"We are not going to let Peugeot and Renault [ both of which received public funds] wait until August or September to recover the spare parts and machines still in the factory," a union leader warned. "If we get nothing, they get nothing at all."

Commercial banks have frozen lending to hundreds of Europe's auto suppliers -- which are on the brink of bankruptcy -- because of the perceived high risk. Sales for European auto suppliers have fallen between 25% and 35% from a year ago, according to WSJ.

"Of Europe's 5,000 or so auto suppliers, 200 have filed for bankruptcy since December and 700 to 800 suppliers are now facing 'acute liquidity problems,'"said Lars Holmqvist, Chief Executive of European Association of Automotive Suppliers. "The summer vacation period, which most car makers are extending because of weak sales, will exacerbate the problem for suppliers."

As GM emerges from bankruptcy eight major suppliers have filed for their own bankruptcy, including Lear Corp -- one of GM's biggest automotive seat and interiors providers. "Supplier health will be the wild card for the next 90 days, not only for GM but all of the auto makers," said Mike Robinet, vice president of global vehicle forecasts for CSM Worldwide.

The French workers' militant tactics including "bossnappings" where managers have been held hostage in their offices, may become viral around the globe.