960405

No French banknote

shortage despite strike

PARIS: The Bank of France said on Friday that there was no danger of a shortage of banknotes due to strikes affecting two of its printing plants in central France. "There is no risk of a possible shortage of banknotes, neither in the short-term, nor in the medium-term," a Bank of France official told Reuters.

Trade union sources had said that if work stoppages continued at the plants of Chamalieres and Vic-Le-Comte, automatic cash machines might run short of money.

But the official said the central bank had a reserve of banknotes that exceeded the 1.3 billion notes in circulation.

Commercial banks, savings banks and the Post Office also had reserves of banknotes, he said.

Five unions of the Bank of France called on Friday for further action to protest planned restructuring and a cost- cutting programme at the central bank's banknotes production operations.

The programme is designed to slash the cost of making a banknote by 30 percent to 70 centimes from one franc and could result in the shedding of 700 jobs out of 2,400.

Talks with management broke down last week.

Earlier this week, strikers at the plant at Chamalieres held the head of the plant and three of his colleagues for 24 hours, demanding clarification of the restructuring plans.

Management sources said some 21 percent of staff at the bank's 211 branches followed the union's 24-hour strike call on Thursday.

Trade union sources said industrial production was paralysed but management sources said Vic-Le-Comte was operating normally though activity at Chamalieres did not resume .-Reuter