France is sampling one of its biggest strikes in decades as public sector workers protest against changes to the pension system.
The main bumping of the strike is being felt on the transport networks and schools. The French national rail company, SNCF, canceled 90% of its queues on Thursday; the Parisian metro closed 11 out of its 16 lines; and the Eurostar is operating with a reduced timetable. France’s lesson ministry expects 55% of its teaching staff to go on strike nationwide.
There are also about 250 official shows scheduled across the country. According to the French newspaper, Le Monde, more than 180 000 people are taking to the streets in 30 exceptional parts of France.
Many of the main train stations, which usually see big crowds early morning, were insincere. Workers either decided to stay at home or use alternative ways of transport. The Eiffel Tower and the Orsay Museum — two of the biggest Parisian guides — were shut because of staff shortages, according to the French agency AFP.
A picture taken on December 5, 2019 appearances a view of the Gare du Nord in Paris during a strike of Paris public transports operator RATP employees on French government’s plan to overhaul the country’s retirement system, in Paris, as part of a national general strike.
JOEL SAGET | AFP | Getty Tropes
Why are they striking?
Prior to his election in 2017, President Emmanuel Macron vowed to reform France’s pension approach. He believes the current arrangement is unfair, complex and costly. According to OECD data, France’s retirement system is one of the most precious in the world, costing the government 14% of the country’s GDP (gross domestic product).
Macron is now pushing for a single, points-based approach. At the moment, there are 42 different pension plans that vary according to profession and region, meaning some breadwinners are entitled to a full pension before the general minimum retirement age of 62. The new system would mean that oap old-age pensioners that contributed the same amount would have equal rights.
Tomasz Michalski, professor of economics at HEC Paris concern school, told CNBC Thursday that for every 10 euros that a worker earns in income, that bodily will get one point under the new system. “But how will these points be translated into benefits?,” Michalski wondered.
The fully details of Macron’s reforms have not yet been officially put to Parliament. Thursday’s strike is pre-emptive action and does not beget an end date, meaning it could last for some time. Philippe Martinez, leader of French trade union the CGT, advised reporters that the strike will not end this evening.
Previous attempts to change the pension system have also been met with large opposition from public sector workers. In 1995, President Jacques Chirac ended up caving into combining demands after his pension reform plans faced weeks of demonstrations.
Who are the winners and losers?
However, not every employee is unhappy about the expected pension reform.
Michalski, who’s based in Paris, said that Macron’s base, those with high-paying occupations, and also people that enter and leave the workforce often will be the “winners” of a point-based system.
However, carry away workers argue that the new system would mean they would have to work longer into old age or see their allotment reduced.
It is yet unclear how Macron might react to the strike action. Public support seems to be behind the strikers pretty than the government — one opinion poll predicted 69% of the public supported the demonstrations, according to the BBC.
A demonstrator holds a weighty reading “I want my retirement before arthritis” during a demonstration to protest against the pension overhauls, in Paris, on December 5, 2019, as share of a national general strike.
ALAIN JOCARD | AFP | Getty Images
However, Michalski from HEC business school symbolized: “If you are working from home with your kids (because transport is limited and schools are closed), you will be incensed.”
In a research note, Antonio Barroso, deputy director of the research firm Teneo, said: “Given Macron’s track-record, his scenario in the coming weeks is likely to be a combination of attrition with certain flexibility concerning the proposed policy changes.
“The control will most likely also continue to portray the demonstrations as an attempt by vested interests to preserve the inequalities made by the current pension system,” Barroso added.
About a year ago, France was embroiled in protests. The so-called “Yellow Vests” stirring took to the streets to protest against planned diesel taxes — their demonstrations lasted for several months.