A strike by staff at LVMH-owned Moët Hennessy Champagne et Services (MHCS) has entered its second week after talks between unions and the company ended in deadlock.

Around 1,100 staff in vineyards, production and administration are supporting the strike, according to the CGT trade union. Action began on 17 March following a dispute over pay.

“MHCS came into effect at the start of 2010 with management claiming that it was strictly a way of simplifying operating structures within the Champagne division,” CGT union branch secretary, Patrick Leroy, told just-drinks today (25 March).

“However, we fear it could lead to rationalisation, with a knock-on effect on jobs, wages and working conditions,” he said.

MHCS groups Champagne brands Moët et Chandon, Veuve Clicquot, Ponsardin, Krug, Ruinart and Mercier.

“We are demanding a 2% increase in salaries and a bonus as a consequence of the creation of MHCS of EUR1,500 per worker,” said Leroy.

MHCS was not available for comment.