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Pension reform in France: Now Macron strikes

2019-12-11T19:28:56.918Z


After days of a general strike across France, the government is finally laying the cornerstones of its controversial pension reform. The pressure of the road, however, Macron's plans do not bow. The fronts harden.



Now it is on the table: the pension reform of French President Emmanuel Macron. Already in the 2017 election campaign, it was announced, but then left long in Approximate. But then last week nationwide mass demonstrations against reform took place, and many public companies, including railways, hospitals and schools, have since been on strike. Macron and his government had to act.

In a one-hour speech in Paris, Prime Minister Édouard Philippe announced on Wednesday that the cornerstones of the reform are to serve all concerned, including ministers and parliamentarians, and a fairer distribution of pensions. "The universal orientation of the reform is in line with the ambition for more social justice," said Philippe.

But no sooner had he stopped talking than all, even more moderate trade union leaders disagreed: "A red line is crossed," said Laurent Berger, secretary-general of the company delegates strongest French trade union CFDT, which does not participate in the strikes and demonstrations. At least not yet.

What did the trade unionists upset? Prime Minister Philippe emphasized that while it wanted to stick to a contributory pension system based on younger people paying their pension contributions to older people. But for everything else, he announced drastic changes:

  • With a new points system, every hour of work in the pension system will be charged in the future. So far, the French only pay for more than 150 hours in three months. So also odd jobs and part-time work should be beneficial to the pensions.
  • All 41 occupational and sector-specific pension schemes are to be phased out and transferred to the general system. Locomotive drivers, who are allowed to retire at the age of 52, can do so at the age of 60 at the earliest - two years before the statutory retirement age of 62. No matter how hard the profession, the retirement age can only be reduced by a maximum of two years.
  • The new system should apply from 2022 for all job starters. For those born in 1975 or later, it will be gradually introduced. Older people are not affected by the new rules.
  • French workers working longer than 62 years of age will be rewarded with a bonus system so that the average retirement age is 64 years in the future.

"Macron is retiring at the age of 64," said the leader of the Left Party, Jean-Luc Mélenchon, after the government's announcement. Similarly, CFDT leader Berger understood that the union had advised to separate structural reforms and austerity measures for future pension financing. Berger no longer sees this separation because the retirement age of 64 years as "budgetary ballast" creates unnecessary fears of structural reforms.

Kiran Ridley / Getty Images

Union protest in Paris (on Tuesday): Against the pension with 64

Even fundamental advocates of the pension reform spoke of a mistake of the government. "Philippe gave a good social speech, but politically bad," said political scientist Alain Duhamel, one of the most renowned political commentators in France, in the news channel BFM. Good social policy, so Duhamel was to understand, because a new system of pension contributions by all experts is advocated. Politically bad because Philippe in no way responded to the current strike and its leading occupational groups. "The time of the specific pension regulations comes to an end," said the Prime Minister only succinctly. The response of the striking, radical CGT union was clear: "We call on all professional groups to step up the strike," said spokesman Philippe Martinez.

Thomas Samson / REUTERS

Premier Edouard Philippe: "The time of the specific pension regulations comes to an end"

The fronts appear to be hardened as never before: Here is a strike movement that brought hundreds of thousands back on the street the day before and with the CFDT could now gain one of the most socially and operationally credible voices in France. There is a government which, even under the pressure of the street, adheres to principles of reform that should create new rules for generations.

"There is no social progress with this reform," said Yves Veyrier, head of the third union, France's most influential force, Force Ouvrière (FO) . This is exactly what Philippe had previously claimed by announcing a minimum pension for minimum wage earners of € 1,000 a month. But Veyrier calculated that a minimum wage recipient will already receive 980 euros pension today. Was that the end of the dialogue between the two sides?

From Thursday, industry-specific negotiations between the government and the unions will follow. For example, the railroad, which has been resting in large parts of the country for six days. Especially the occupational groups, which have particularly favorable pension regulations, can strike particularly effectively: this also includes garbage workers, employees of oil refineries and truck drivers. They can paralyze France to a large extent. The Parisian garbage workers had to accept a few years ago that their retirement age increased from 55 to 57 years - are they now 60 or 62 years to offer?

President Macron himself has not yet said a word about the strikes. "If he comes through with this reform, he will be the president of the reforms, if not, he will be considered unsuccessful," Duhamel said.

Source: spiegel

All news articles on 2019-12-11

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