Strikes in France: A “brutal” pension reform?

In France, unions have again called for nationwide strikes. Why is the protest against the planned pension reform so violent – and is it as “brutal” as its critics say?

It will probably be another busy day for many parents in France. Because of the strike, a large part of the kindergartens and crèches are closed. “Well, unfortunately we’ve gotten used to it – you just have to be flexible. Either my partner or I have to take a day off. Or work from home – but that’s really not that productive,” says a father.

The effects of the strike will also be clearly felt in public transport: many connections are canceled at the railway company SNCF and the Parisian transport company RATP. Around 200 protests have been announced across France today. The unions are counting on the strikes and demos being even bigger than about a week and a half ago – when, according to the Interior Ministry, around 1.1 million people were on the streets.

Controversy over retirement age

“Our pension system, which is based on redistribution, is not in danger. Nothing justifies such an unjust and brutal reform. The trade union federations together call on all people of France to join the protests against this unjust reform on January 31”, says Philippe Martinez, general secretary of the trade union confederation CGT. For the trade unions, the retirement age is not an issue, the planned increase is a red rag for them. However, retiring later and paying contributions for a year longer are two central points of the reform on which the government is not prepared to back down.

Prime Minister Elisabeth Borne apparently felt it necessary to verbally bang on the table in this regard at the weekend: “Retirement at 64 is no longer negotiable. Neither is the 43 years of contributions to have full pension entitlements. That is our compromise proposal after we the employers’ associations, the trade unions and also the parties represented in Parliament,” said Borne.

Generous pension system?

For the government, the threatening financial imbalance of the pension system was and is one of the most important arguments in favor of the reform. In fact, the French system is comparatively generous, explains Monika Queisser. She heads the department for social policy at the OECD in Paris.

“Overall, the French pension system spends just over 14 percent of gross domestic product, making it the third most expensive after Italy and Greece. This is of course a political issue – each country can decide for itself how much it wants to spend on pensions. But if it’s a pay-as-you-go process, then of course it’s also clear that it has to be financed by the active generations,” says Queisser.

Fear of age discrimination

At the same time, in France, there is a double requirement to receive a full pension: the retirement age – and the number of years of contributions. The reform aims to increase the number of contribution years to 43. This means that if you started your career at the age of 25, you have to work until you are 68 in order to receive your full pension. De facto, however, many people get out of the job much earlier – namely at a good 60 years, says OECD expert Queisser.

This is also due to a lack of respect for older workers: “The experience of the French is that you are not treated well as an older worker. That you are often discriminated against when you become unemployed after 50. That’s why many people in this country also have great concern that the increase in the retirement age will only mean that they will be unemployed for longer and will then also be worse off in terms of income and exposed to the risk of poverty,” says Queisser.

7000 amendments

The reform project has been under discussion in Parliament’s Social Affairs Committee since Monday. At the beginning of next week, the pension reform will come before the plenary session of the National Assembly. Before the committee meeting, a total of around 7,000 amendments had been received – 6,000 of them came from the “Nupes” left-wing alliance. Interior Minister Gérald Darmanin speaks of a systematic blockade.

“7,000 amendments: that’s not reasonable. It seems to me that there is no interest in a democratic debate at all. It’s just about causing chaos,” said Darmanin.

The sharp tone is in part a flight forward, because it is uncertain whether the reform will find a majority in Parliament. The government and President Emmanuel Macron are dependent on the votes of the opposition “Les Républicains” – some of whom have major reservations about the project. In the government camp, too, the voices that are skeptical about the pension reform are getting louder.