French bank workers walk out

French PM Jospin makes his first purchase using the euro

PARIS, France -- France's five main banking unions began a one-day strike on Wednesday, the first working day for the euro.

Service at bank branches was expected to be patchy as workers began a protest to demand higher pay, an increase in staff and better security.

But Gilles Guitton, head of the French banking federation (FBF), predicted the strike would have limited impact.

Draft accords signed with some trade unions in the past week, plus the fact that many holidaying employees were still unaware they had been asked to stay away from their offices, would make for a low mobilisation, he said.

"The last information we've had, both last night and this morning, shows that in all likelihood the very large majority of bank branches will be open," Guitton told France Inter radio.

"Certainly, there may be local exceptions, but the vast majority of bank branches will be open. I don't think everything is necessarily all that bad," he added.

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Finance Minister Laurent Fabius, speaking during a tour of a suburban Paris supermarket to see how merchants were handling the euro transition, predicted that support for the strike would be weak.

"This strike won't be very widespread, because I think that people have a high sense of duty," he said.

Societe Generale Chairman Daniel Bouton told Europe 1 radio he did not think the strike would have any impact on the euro launch.

"But it's a great pity and damaging in terms of the image of France it gives," he said.

Union officials said it was too early to gauge how many would join the strike, but they said the walkout could be extended beyond Wednesday if support proved strong.

"We have given ourselves the possibility of renewing the stoppage," said Michel Marchet, an official with the CGT union. "If the level of support is very high, then the strike will be renewed."

The union's rank-and-file were expected to vote on Wednesday or Thursday to decide whether to continue the strike.

Five unions first announced plans for the strike in late November, prompting numerous calls from government officials for the strike to be abandoned in light of the historic switch to the euro.

Bank of France governor Jean-Claude Trichet, speaking on LCI television on Wednesday, called for restraint from the bank workers in the first working day for the euro.

Trichet issued "an appeal to everyone to show responsibility" during the strike. He said, however, that France's switch to the new currency has "gone over very well."

The strike came against a background of what was described as a "winter of discontent" in France.

Others to stop work have included museum workers, air traffic controllers, went teachers, hospital workers and police.

Even the unemployed marched on Paris City Hall in a month ago to demand a higher Christmas bonus in their year-end cheques.

With elections due, Socialist Prime Minister Lionel Jospin -- a likely candidate for president -- earned the nickname "Santa Claus" from the French media for his government's outpouring of generosity to public sector workers.

Striking hospital workers returned to work after the government pledged $1.8 billion to raise pay and create 45,000 new jobs over the next three years.

Protests by police led to a government pledge of $300 million, with a sharp salary increase for each gendarme and the hiring of 4,500 more staff.