Nestle Waters France has had to shelve plans for industrial re-organisation due to opposition from the majority labour union, the CGT.

Nestle hoped to shed 1,047 jobs by 2007 using an early retirement package.

"After nine months of negotiations, the management of Nestlé Waters France deeply regrets that it must definitively terminate the proposed GPEC/CATS plan aimed at allowing the company to continue to develop and to contend with increasing competition," the company said.

"Accordingly, none of the agreements, which had been signed by the CFDT and the CFE/CGC labour unions on 23 July 2004, may enter into effect.  Therefore, the early retirement of 1,047 employees (corresponding to around 860 positions) and the planned 276 new hires may not take place.

"The decision to object was made by the CGT with the full knowledge of the consequences of its act on the company, on its sites and on all of its employees. Other approaches will have to be considered for the future of the company, its brands and its sites, and will be announced in September 2004," it added.