7 Aug 2009

France welcomes settlement of Air Caledonie dispute

9:20 am on 7 August 2009

The French government has welcomed the deal reached in New Caledonia ending a long-running labour dispute that led to nearly two weeks of disruptions.

The agreement between the USTKE union and the domestic carrier, Air Caledonie, was reached after mediation efforts by the territory's president, Philippe Gomes.

It came only hours after France readied more riot police to be sent to Noumea after about 30 officers suffered injuries in skirmishes with union members and its supporters.

The settlement came despite the union failing to win the release of its jailed leader, who is to remain imprisoned until June.

The strike related to the dispute at the airline severely disrupted business activities in the Noumea area, particularly the construction sector.

The conflict began when the union objected to the airline disciplining a union member for a breach of privacy as an airline employee.