France faces more strike delays but end in sight

PARIS (Reuters) - French commuters faced another day of transport delays on Thursday, but newspaper commentators said an end was in sight to a nine-day transport strike over President Nicolas Sarkozy's pension reform plans.

Nationwide rail services and Paris local transport lines ran at reduced capacity as workers in local committees met to decide whether to prolong their strike over plans to cut special pension benefits.

But the start of talks between unions and management of state rail operator SNCF on Wednesday inspired confidence the standoff was nearing resolution.

"Towards the end of the strike at the SNCF," ran a headline in the daily Le Figaro.

The SNCF says support for the strike has dwindled in the past few days. More trains and Paris metro services were running on Thursday than earlier this week, though public transport still remained severely disrupted.

The strike, which began on November 13, has been seen as a key test of the credibility of Sarkozy who was elected in May on a platform of economic reform.

Public opinion has been firmly on the government's side in the dispute but widespread worries over the cost of living have put pressure on the government not to allow the dispute to escalate and get out of hand.

The protests reached a peak on Tuesday when civil servants staged a separate one-day strike over pay and job cuts and some civil service unions warned they might renew their protests next month.

Students in some universities and high schools have kept up their own demonstrations over education reforms and plan to hold rallies in several cities and in front of the oldest Paris university, the Sorbonne, later on Thursday.

Rail unions, which met SNCF management on Wednesday, are expected to continue talking for at least a month. Only the hard-line Sud Rail union has refused to take part.

The Paris transport authority RATP was due to hold talks with unions on Monday.

Sarkozy has vowed to stand firm over the central point of the dispute, scrapping a privilege that allowed some public transport workers to retire on a full pension after paying contributions for 2.5 years less than the norm of 40 years.

But the SNCF has offered some concessions such as including certain bonus payments in the calculation of pension rights or pay rises for those approaching retirement and union leaders said that some progress had been made.