French Government set to announce plans for raising retirement age
French prime minister Elisabeth Borne is expected to announce that France's legal age of retirement will be raised from 62 to 64 as she unveils plans for controversial reforms to the country's pensions system. Unions have already called for mass demonstrations to protest the planned changes. ----
Pensions: How does France compare to European neighbours?
France is bracing for protests as the government pushes ahead with its unpopular pension reform. Most of the French public are vehemently opposed to working longer - to the age of 64 or 65 according to the government's proposals. But how does France compare to its neighbours in Europe?
FIRST-HAND ACCOUNTS
‘I can’t take any more’: Working-class French lament Macron’s push to raise retirement age
Issued on: 10/01/2023 -
The centrepiece of Macron's proposed pension overhaul, which Prime Minister Elisabeth Borne unveiled on Tuesday, involves raising the retirement age from 62 to 64, and increasing the total number of years people must work to qualify for a full pension.
Macron became the first French president in a generation to lose a National Assembly majority in last year’s parliamentary elections. That means he will either have to get a few dozen conservative MPs to cross the aisle or resort to Article 49.3 – the Fifth Republic’s most contentious constitutional tool, which would allow him to bypass parliament altogether, even if it would mean a big loss of face.
The president had to temporarily shelve pensions reform when Covid struck during his first term. France saw its biggest strikes in decades, bringing Paris to a halt for much of the winter of 2019-20. Back then, the moderate CFDT trade union – France’s biggest – sat the strikes out. This time, it has joined other unions in calling for nationwide strike action on January 19.
A 'byzantine' pension system?
Critics often cast France's existing pension system as “byzantine” or “convoluted”, because it consists of 42 different state-supported schemes. According to report by the Pensions Advisory Council (Conseil d’orientation des retraites), “between 2023 and 2027, the pension system’s finances will deteriorate significantly”, reaching a deficit of between 0.3 and 0.4 percent of GDP (or just over €10 billion a year) until 2032.
The entire pensions system cost the government 14 percent of GDP in 2021, more than most other industrialised nations. However, others argue that the debt the current system is likely to create does not amount to much – and that, in any case, Macron’s government can find other ways of making up the shortfall, not least by reversing planned business tax cuts.
FRANCE 24 spoke to various workers aged from 22 to 60 about why they are opposed to the reform. The predominant thread running through these interviews was the simple fact that many jobs are hard. And linked to that: the belief that France’s relatively generous pension system should be cherished as apt compensation for physically and emotionally draining work.
Dominique, 59, retail supervisor: 'I’ve never gone on strike in my life – but this time, if they ask me, I will'
“It’s been 30 years I’ve been working in retail. I’ve already had surgery on both shoulders to deal with tendonitis caused by all the repetitive movements and the heavy loads I carry throughout the day. In total, I’ve got to carry about 600 kilos of goods every day. I’ve also had to get prosthetic thumbs on both hands: I’ve lost my joints from ripping and tearing boxes to put on shelves. So if I end up being told I’ll have to delay my retirement – whether it’s by a few months or a year – I won’t be able to accept it.
“This work only gets harder as you get older. I find it a lot more difficult than I did twenty years ago to carry loads; even my knees are starting to give way now.
“We’ve got a lot of young people in this country looking for work; and I think they should be trained to fill the jobs of people retiring at 62. I’ve never gone on a protest or gone on strike in my life – but this time, if they ask me, I will. Because we’re coming up against something really unpalatable. If you ask too much of people, it just becomes unbearable for them, either physically or psychologically.”
Jean, 29, bricklayer: 'A lot of my colleagues end up with cancer at 60'
“Working as a bricklayer, it’s already a bit of a tall order getting to 60 in good health, even if you have a reduced workload. All day long, you’re coming up against oil, grease, cement, dust, everything there is in the building industry. You’re hammering all the time; it’s very hard on your body. A lot of my colleagues end up with cancer at 60. And even if you don’t get cancer, from the age of 50 onwards, you get bad knees, a bad back, carpal tunnel, damaged ligaments – you name it.
“A few colleagues of mine look broken physically – they walk around like ducks. They need constant help; they can’t walk normally anymore; they’re screwed. So if you have to carry on till you’re 64 … When I see people in that state, I know I’m not going to carry on bricklaying. I’m going to retrain – then I’ll be renovating flats to rent them out. That’s the only way I can avoid working myself to death. I’ve only been a bricklayer for four years and I can already see it’s not going to be sustainable. My back’s already showing bad signs, even though I’m not yet 30.”
Joanna, 45, psychiatric nurse: 'You shouldn’t waste all your life earning a living'
“I’m not going to just wait for my retirement; it’d be impossible for me to carry on as a nurse for another two decades or so. When I started out, you could stop working at 55 if you had three children, or at 57 if you didn’t, but that all changed a long time ago.
“It’s hard, being a psychiatric nurse. It puts a big burden on you mentally. You’re affected by all the unhappiness in the world; you have to absorb such hard stories when you talk to people. I had a burnout last year. I’ve got four children. I don’t want to throw all of my life into work anymore. My granddad used to say to me: ‘You shouldn’t waste all your life earning a living.'"
Sofiane (not his real name), 49, Amazon worker: 'I won’t be able to keep going'
“My colleagues and I were talking about the reforms this morning. Everybody’s disgusted. It depresses me. I’m 46 years old and I already find it hard – so if I’ve got another 20 years to go …
“I get up at half past three. I load and unload parcels for Amazon. Every day I handle between 10 and 15 crates of packages. Each weighs 130 kilos. It’s very physical work – and you have to do it quickly. So it’s stressful.
“Every day after I finish, I can hardly walk; my back hurts, my joints hurt, my ankles hurt. So working like this until I’m over 60 seems flat-out impossible for me. I won’t be able to keep going. I’ll have to find a more suitable job. This reform is nonsense.”
Bénédicte, 60, assistant for disabled children at a nursery: 'I’ve given all I can give'
“I was a nursery school teacher for 25 years, and for the last five years I’ve been a carer for disabled children. I’ve had a chaotic career, with three children, a divorce … I already know that I’ll have a small pension, like many single women. For the moment, I’ll have to work until I’m 64, and I don’t know exactly what to expect if the reform goes through. But I’ve decided not to renew my contract. I’d rather be unemployed, live on what’s left of my savings or start training until I retire, because I can’t take any more.
“I don’t want to work with children anymore. I’m looking after a very difficult little boy, who went through hell at the age of just 4 and a half. I can’t stand running after him, arguing with him, taking him back to where he’s supposed to be. It’s a job that wears you out. I want to stop before I get too worn out. I think I’ve done my fair share of work. I’ve given all that I could give. Now I’m a granny; I’ve got three granddaughters and I want to look after them.”
Balthazar, 22, restaurant runner: 'I don’t know if I’ll still be alive when I’m 60'
“Retirement is a very foggy idea in my mind. It’s hard for me to think that far ahead, especially seeing as I don’t want to work in the restaurant business all my life. It’s so physical in any case; I couldn’t do this job until I was 64.
“I don’t know if I’ll still be alive when I’m 60, if there’ll be all kinds of other reforms in the meantime, what state the planet will be in with climate change. So I don’t feel any immediate sense of concern. But I am absolutely against the reforms. The aim is to save money, to make the country produce more, to lower companies’ contributions and make people work longer. It’s the poor who are going to be affected, especially since a quarter of the poorest men are already dead by the age of 62 – which is of course scandalous.”
This article was translated from the original in French.
Strikes called as Macron presses ahead with French pension reform
Adam PLOWRIGHT and Benoit FAUCHET
Tue, January 10, 2023
French trade unions called for strikes and protests Tuesday after President Emmanuel Macron's government announced plans to raise the retirement age, setting the stage for a bitter fight and weeks of disruption.
The government intends to hike the retirement age to 64 from the current 62 and streamline the pension system under changes even some supporters view as risky and likely to provoke backlash.
The country's eight biggest unions immediately called a day of protests on January 19 which "kicks off a powerful movement for pensions for the long term", according to their joint statement.
It will be the first time in 12 years -- since the last pension changes -- that all of France's unions are united, with the head of the more moderate CFDT, Laurent Berger, calling the reform "one of the most brutal of the last 30 years."
Presenting the outlines of the government's plans after months of suspense, Prime Minister Elisabeth Borne said Tuesday that doing nothing about projected deficits for the retirement system would be "irresponsible".
"It would lead inevitably to a massive increase in taxes, a reduction in pensions and would pose a threat to our pensions system," she said.
Opinion polls show that around two thirds of French people oppose raising the retirement age and the move comes amid high inflation and with the country still recovering from the Covid-19 pandemic.
"By asking French people to work for longer, even though life expectancy with good health is 64, Emmanuel Macron is offering no prospect of a peaceful life that our fellow citizens deserve," far-right leader Marine Le Pen said afterwards.
- 'Anxiety and fears' -
Macron's last attempt at pension reform in 2019, aborted a year later when Covid-19 hit Europe, prompted the longest strike on the Paris transport network in three decades.
The 45-year-old centrist put the issue at the heart of his successful re-election campaign last year, pointing to forecasts that the system would fall into heavy deficit at the end of the decade.
As well as raising the retirement age, the changes would increase the contributions required of workers before they can claim a full pension, effectively extending the careers of millions.
It would also put an end to special pension privileges enjoyed by workers in some sectors, such as the Paris transport network, but only for new entrants.
Despite pledges to raise the minimum pension to nearly 1,200 euros ($1,290) a month, left-wing opponents say the reform is unfair because it will disproportionately affect unskilled workers who started their careers early, sometimes in their teens.
French economist and author Thomas Piketty wrote in Le Monde newspaper at the weekend that the projected savings of 20 billion euros a year by 2030 "will weigh down entirely on the poorest".
Some ruling party lawmakers have spoken privately of their concern about protests, while one of Macron's closest political allies, Francois Bayrou, has warned that the government has not explained itself sufficiently.
"I'm very aware that making changes to our retirement system is causing anxiety and fears among French people," Borne said.
- Yellow Vests II? -
As well as paralysing strikes, the government risks a repeat of spontaneous protests in 2018 when people wearing fluorescent yellow safety jackets began blockading roads, sparking what became known as the "Yellow Vest" revolt.
The often violent display of defiance struck fear into the heart of government, leading Macron to promise a gentler, less authoritarian style of governing.
Bruno Cautres from Sciences Po university in Paris told AFP that the national mood was one of "pessimism, fatalism and anger", but he did not expect another uprising.
The government appears to be banking on the country acquiescing to a change that is widely disliked but viewed as inevitable.
It received a boost on Thursday when the right-wing opposition Republicans party welcomed the proposals and signalled it would vote in favour of them, potentially clearing the way for quick approval in parliament next month.
The once-mighty French unions are also in steady decline and have repeatedly lost out in their struggles with Macron.
"If they lose this battle again, if they get nothing on the pension issue, it will be complicated for them to manage the aftermath," said Stephane Sirot, a historian and author specialising in the French labour movement.
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FRENCH PENSION REFORM
Pension reform: Macron presses ahead despite strike threat
France's labor unions made a joint call for a day of strikes on January 19 after Prime Minister Elisabeth Borne announced an overhaul of France's pension system on Tuesday.
Le Monde with AFP
Published on January 10, 2023
The French government on Tuesday, January 10, announced plans to raise the retirement age to 64 and streamline the pension system, causing backlash from France's eight main trade unions who called for a day of strikes and protests on January 19 against the reform announcement.
The strikes aim to "kick off a powerful movement for pensions in the long term", said a joint statement from the unions whose leaders met on Tuesday evening in Paris to plan their next steps. It's the first time in 12 years – since the last pension reform – that all of France's trade unions made a joint call for strikes.
Even some of President Emmanuel Macron's closest allies are known to be uneasy about the proposed changes, which come at a potentially explosive time so soon after the Covid-19 pandemic and amid high inflation.
Presenting the outlines of the government's plans on Tuesday after months of suspense, Prime Minister Elisabeth Borne said that doing nothing about projected deficits for the pension system would be "irresponsible." "It would lead inevitably to a massive increase in taxes, a reduction in pensions and would pose a threat to our pensions system," she said.
Major disruption is expected in the coming weeks, with opinion polls showing that around two-thirds of French people oppose raising the retirement age and most would support protests.
Business leaders are worried about the impact of stoppages on public transport or other public services, adding to concerns about rocketing energy prices and labor shortages.
'Anxiety and fears'
Mr. Macron's last attempt at pension reform in 2019, aborted a year later when Covid-19 hit Europe, prompted the longest strike on the Paris transport network in three decades.
The 45-year-old centrist put the issue at the heart of his successful re-election campaign last year, pointing to forecasts that the system would fall into heavy deficit at the end of the decade.
As well as raising the retirement age, the changes would increase the number of years in which workers must have made contributions before they can claim a full pension, effectively extending the careers of millions.
It would also put an end to special pension privileges enjoyed by workers in some sectors, such as the Paris transport network, but only for new entrants.
Left-wing opponents say the reform is unfair because the higher retirement age will affect unskilled workers the most because they tend to start their careers earlier than graduates.
French economist and author Thomas Piketty wrote in Le Monde at the weekend that the projected savings of €20 billion a year by 2030 "will weigh down entirely on the poorest."
Some ruling party lawmakers have spoken privately of their concern about protests, while one of Macron's closest political allies, Francois Bayrou, has warned that the government has not explained itself sufficiently. "I'm very aware that making changes to our retirement system is causing anxiety and fears among French people," Ms. Borne said.
Remembering Yellow Vests
The biggest fear is a repeat of spontaneous protests in 2018 when people wearing fluorescent yellow safety jackets began blockading roads, sparking what became known as the Yellow Vests movement.
Some in government are banking on the country acquiescing to a change that is widely disliked but viewed as inevitable. Most of France's neighbors have hiked the retirement age to 65 or beyond.
The government is hoping for a speedy adoption of the legislation in parliament next month, where Mr. Macron's allies are in a minority since June. Their hopes were given a boost on Tuesday when the right-wing opposition Les Republicains (LR) party signaled it would vote in favor. The head of the LR parliamentary party, Olivier Marleix, said Tuesday his group was "ready to support a reform" as long as "a few conditions" were met.
French PM unveils pension changes, unions call for strikes
By Sylvie Corbet | AP
January 10, 2023
PARIS — French Prime Minister Elisabeth Borne on Tuesday unveiled a contentious pension overhaul aimed at raising the retirement age from 62 to 64 by 2030, which prompted vigorous calls for strikes and protests from leftist opponents and labor unions.
Speaking in a news conference in Paris, Borne said the minimum retirement age to be entitled to a full pension will be gradually increased by three months every year, starting this year, in line with a longstanding pledge by President Emmanuel Macron.
In addition, people will need to have worked for at least 43 years to get a full pension, starting from 2027, she said.
“Working more will allow future retirees to get higher pensions,” Borne said.
“By 2030, our system will be financially balanced,” she added.
Those who started working before the age of 20 will be able to get early retirement, Borne added. Specific categories of workers such as police officers and firefighters will also be able to retire earlier.
The government argues that French people live longer than they used to and therefore need to work longer to make the pension system financially sustainable. All French workers receive a state pension.
Center-left and hard-left labor unions unanimously expressed their disapproval of the proposed changes after talks with Borne last week. Some are in favor of an increase in payroll contributions paid by employers instead.
The country’s eight main labor unions announced a national day of strikes and protests on Jan. 19.
Laurent Berger, head of the CFDT union, denounced “one of the most brutal pension reforms of the past 30 years.” Philippe Martinez, secretary general of the CGT union, urged workers to “go on strike that day and the next days,” adding that the union is “committed to prevent that bill from passing.”
A heated debate in parliament also is to be expected, starting next month.
Macron’s centrist alliance lost its parliamentary majority last year — and most opposition parties are opposed to the changes.
Borne vowed to seek “compromise” with some other political groups. Macron’s centrist lawmakers hope to be able to ally with members of the conservative The Republicans party to pass the measure.
The president of The Republicans’ group at the Senate, Bruno Retailleau, appeared satisfied with the planned changes, saying on Twitter that “the reform proposed by Elisabeth Borne echoes the one we vote at the Senate.”
Otherwise, the government may use a special power to force the law through parliament without a vote — at the price of much criticism.
The pension reform is an electoral promise from Macron, who failed to implement a similar measure during his first term. The proposal at that time sparked nationwide strikes and protests, before the COVID-19 crisis led the government to postpone the changes. Macron was reelected for a second term last year.
France’s Retirement Guidance Council issued a report last year showing that the pension system is expected to have a deficit over the next decade, with the government having to compensate.
France’s main MEDEF employers’ union issued a statement welcoming “an indispensable reform to save our pension system.”
The minimum retirement age applies to people who have worked enough years to qualify. Those who do not fulfil the conditions, like many women who interrupt their career to raise their children and people who did long studies and started their career late, must work until 67 to retire without penalty.
The average pension this year stands at 1,400 euros ($1,500) per month once taxes are deducted. But that average masks differences across pension schemes depending on professions.
Borne said the reform will allow the minimum state pension for low-income workers who have a full career to increase by 100 euros ($107) on average, reaching about 1,200 euros ($1,288) per month.
Over the past three decades, French governments have made numerous changes to the system but each reform has been met with massive demonstrations.
