Thousands of train, subway and bus workers, joined by staff at state-run gas and electricity companies, as well as the Paris Opera, are taking part in demonstrations in Marseille, Rennes, Paris, and other cities. The strike is the largest in France for a decade.
However, a spokesman for the French National Railway Company (SNCF) said on Thursday the service has slightly improved with 150 trains out of 700 high-speed city trains running compared with 90 on Wednesday.
French media reported that the strike is expected to continue for another 24 hours.
Only one metro line in Paris has been completely shut down, and traffic varies from one in three or four scheduled trains, forcing people to use other forms of transport. Some 30% of the city's buses and trams, and 20% of high-speed trains are in service.
Sarkozy said on Wednesday the conflict "must end as quickly as possible in the interest of passengers." Later on Labour Minister Xavier Bertrand held talks with the trade unions and agreed on a one-month deadline for negotiations.
The strike, which is the greatest challenge for the French president since he came to power some six months ago, was called in protest at Sarkozy's proposals to scrap pension programs for some public sector workers.
The last attempt to reform the pensions was in 1995, under Jacques Chirac, when three weeks of general strikes in France almost paralyzed the country's transportation infrastructure.
The so called special regime, introduced in the 1930s for some transport workers to compensate for harsh working conditions, allows them to retire at 50, and to pay pension contributions for 37.5 years rather than 40, required by other employees.
The government wants to increase the retirement age initially from 50-55 and eventually up to 60. The reform is expected to save some $7.3 billion per year.
Meanwhile, transport workers claim they are low-paid and work longer than other sectors, which justifies their special status.
According to opinion polls, published by Le Figaro Magazine, a total of 61% responders are against the strike with 38% supporting the strikers
