ADVERTISEMENT

French PM, Unions Keep Pension Red Lines in Year’s First Meeting

French PM ‘Firm’ on Universal Pension System, Open on Methods

(Bloomberg) -- The French government and unions held on to their red lines on pension reform in the new year’s first meeting aimed at ending a standoff that’s prompted a record-long transport strike.

The two sides left the door open for further talks.

Prime Minister Edouard Philippe, who met with unions Tuesday, said he remains “determined” to introduce a universal pension system, while the CFDT union -- the country’s largest -- repeated that increasing the retirement age would be a red line.

The government has outlined plans to replace 42 different pension regimes with a single, points-based system and proposed raising the age for a full pension to 64 from 62. That has triggered strikes by transport unions opposed to losing their special regimes. The strikes have lasted more than a month, gumming up travel and commutes.

“I’m very happy to have been able to meet with unions and employer organizations at the start of the year to make progress and to allow the creation of a universal pension system to which we’re extremely attached,” Philippe said.

Philippe welcomed a proposal from the CFDT union to hold a conference on the future financing of the pension system, while the union said ahead of further talks scheduled for Friday that the government must drop plans to raise the retirement age.

‘Unjust’ Proposal

“The retirement age is unjust, serves no purpose and has been massively rejected by the population,” the CFDT said in a statement following the meeting.

French President Emmanuel Macron has already made unpopular changes to taxes, labor laws and the welfare system, while pension reform is proving challenging. The labor unrest has already run longer than strikes in 1995 that forced the government to back off from changing the state system for retirement and health care.

Philippe said earlier on Tuesday that he was open to all discussions on the retirement age so long as they are fiscally prudent and are aimed at balancing the budget. He added that he was open on the methods involved in achieving a universal system.

“The transition may be gradual for different categories, but I am firm on the objective of a universal system, with no special regimes,” Philippe said in an interview on RTL radio.

Refinery Action

“The French know and understand that everywhere in Europe people are working a little longer because life expectancy has increased,” he said. “The system needs to be responsible and balanced.”

The CFDT said the government’s openness to discussion was positive, though the paths of discussion “are narrow.”

Strikes against the reforms began on Dec. 5, with disruption to national rail services and the metro system in the French capital continuing into the new year. Unions have called for further demonstrations later this week to keep up pressure on the government.

Oil major Total was readying for four days of disruption at its refineries by striking workers, while Exxon said fuel deliveries from its Fos refinery were being impacted.

The pension bill is due to be presented to the cabinet on Jan. 24, with the National Assembly to start examining it at the end of February. Philippe expects the law to be adopted in the National Assembly in March, he said.

To contact the reporters on this story: Vidya Root in Paris at vroot@bloomberg.net;James Regan in Paris at jregan65@bloomberg.net

To contact the editor responsible for this story: Vidya Root at vroot@bloomberg.net

©2020 Bloomberg L.P.