Union approval brings STX closer to MSC

Genoa - STX France can go ahead with the new contract with MSC for two additional cruise ships. Force Ouvriere has decided not to oppose (although it hasn’t signed) the so-called “competitiveness agreement” already approved by the other two unions, allowing the agreement to go into effect. This agreement will allow a reduction of labour costs and it was one of the conditions necessary for the STX deal to move forward. Despite assigning a refitting project to Fincantieri this year, MSC has been a long standing customer of STX. And there is more good news for STX. After the confirmation of the ships for Brittany Ferries, the Saint Nazaire shipyard is very close to getting the commission announced by SNCM, at least according to the French press. In mid January, Brittany Ferries ordered a large ferry with a liquefied natural gas engine, with a total cost of 270 million euros.

The ferry will have a capacity for 2,400 passengers, will be 210 meters long and will reach a speed of 25 knots. Most probably, this order will be followed by a SNCM order for two ferries, also with a LNG engine, and the option for two more. The total value of the order will be 800 million euros. The French company’s fleet upgrade was forecast in the rescue plan they presented last year. Although there are doubts about the feasibility of the plan, after the European Union asked SNCM for the restitution of 440 million euros of public subsidies. The company cannot afford to make such a restitution. The French government, under pressure from the unions, is committed to guaranteeing SNCM’s survival. The unions also requested the order for new ships to be assigned to the French shipyard STX France. There were many competitors after this order, for instance the Italian company Fincantieri, as well as German, Japanese and Korean shipyards. Nantes newspaper “Presse Ocean” revealed that STX France is actually favoured for the job. SNCM’s Supervisory Board is working on the financials of the operation and will make a decision next February 25th.

The most coveted job is the MSC order for two cruise ships. The Neapolitan company asked for a cost reduction, that is only feasible if the unions CFDT and CFE-CGC sign the treaty which is opposed by CGT. Now that Force Ouvrière has taken a step back, the agreement will be approved. The decision came after the contract incorporated some of FO’s requests in regards to the reduction of unemployment benefits, but the union has, however, decided not to sign because the wage policy of the company “does not meet expectations”. On top of MSC’s contract, there is an option for a new Oasis ship for Royal Caribbean.