CHAOTIC scenes are continuing across France this week, with a nationwide strike ongoing and hundreds of thousands of people set to take to the streets once more, all in protest at proposed reform of the pensions system.
What is going on?
President Emmanuel Macron has pledged to overhaul the French welfare system, in its biggest transformation during the post-war era, with pension reforms at the heart of his proposals.
At the moment?
France has a complicated system in place with 42 different pension schemes for both private and public sector workers, with varying ages for retirement and benefits. Presently, benefits are calculated using a private sector employee’s 25 best-paid years of work, while in the public sector, it is based on pay during the last six months prior to retirement.
Also?
France has an official pension age of 62, but some workers - such as railway and electricity employees - can retire on good pensions in their early to mid-50s, while 62 remains one of the lowest retirement ages among the Organisation for Economic Co-operation and Development (OECD) group of rich nations.
Macron’s new plan?
He wants to create a consolidated system, rewarding employees for days worked by way of points that would be transferred into future pension benefits. Meanwhile, those retiring before 64 would be given a lower pension based on the points system.
The problem is?
Those likely to have the best pension packages under the current system are obviously unhappy, ranging from rail workers to civil servants, with the latter aware – along with the likes of teachers, nurses, doctors and police - that a final earnings calculation is their best option. Also, clearly no-one wants to work longer.
What's motivating Macron?
The country's ageing population and a looming pension deficit - a recent report estimated that under the present system, France's pension black hole could be as big as £14.5 billion by 2025. Macron believes that change is necessary to keep France financially viable.
But strikes are causing chaos?
Last Thursday, more than 800,000 people marched in cities across the country, with tear gas fired at masked protestors in Nantes and in Paris. Today, a general strike enters its sixth day. Much of the country has been brought to a standstill as schools have been closed and trains, metros and bus services hit by strike action. Eurostar is warning its services till December 12 will be heavily disrupted, affecting more than 30,000 passengers. Hundreds of flights are also impacted.
Now?
The government has pledged to move forward with the planned reforms and full details are to be outlined tomorrow (WED). But unions plan another massive street protest today (TUE). Meanwhile, the rail unions are calling for strikes to continue, keeping services almost at a standstill. Fears remain that action could continue toward Christmas, despite retailers complaining of falling takings and hotels reporting cancellations.
Ironically?
A recent poll by French pollster Ifop found that 76% of French people believe pension change is necessary.
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