Why Nearly A Million People Are Marching In Protest Against France's Proposed Pension System Changes

More than 9,60,000 people marched in Paris, Nice, Marseille, Toulouse, Nantes and other cities of France last weekend in nationwide demonstrations against President Emmanuel Macron¡¯s plans to reform the country¡¯s pension system.

Nearly A Million People Protest In France

DW

In its fourth round of demonstrations, nearly one million people were seeking to keep up pressure on the government over its pension reform plans.

After three days of nationwide strikes since the start of the year, unions are hoping for a mass turnout of more than a million people soon.

"If they're not able to listen to what's happening on the streets, and are not able to realize what is happening with the people, well they shouldn't be surprised that it blows up at some point," Delphine Maisonneuve, a 43-year-old nurse said, as per Reuters report.

But what is the protest against?

Changes Proposed In France¡¯s Pension System

President Emmanuel Macron's plan to reform France's costly pension system has infuriated trade unions who are testing Macron's ability to push through a change in his second term.

The French government has proposed the following changes in the country's pension system:

1. Retirement age pushed back by two years to 64. The change will be gradual, increased by three months per year from September, until 2030.

2. From 2027, workers will have to make social security contributions over 43 years rather than 42 years in order to draw a full pension. The additional year was already foreseen in a 2014 reform but Macron is accelerating the pace of transition.

3. Guaranteed minimum pension income of not less than 85% of the net minimum wage, or roughly 1,200 euros per month at current levels, for new retirees. After year one of retirement, the pensions of those receiving a minimum income will be indexed to inflation. The government expects to recalibrate upwards the incomes of those already receiving the lowest pensions.

4. Public workers in jobs deemed physically or mentally arduous will maintain the right to early retirement, though their retirement age will be increased by the same number of years as the wider labour force.

5. Police officers, sewer cleaners, prison guards and air traffic controllers are among those currently able to retire at 52.

6. The end to a grouping of a dozen so-called 'special regimes' with different retirement ages and benefits that currently cover, among others, rail workers, electricity and gas workers and central bank staff.

This change will only apply to new entrants to the labour market. Existing workers in these sectors keep hold of their perks.

However, the 'special regimes' covering seafarers and Paris Opera House performers survive.

7. A 'Seniors Index' modelled on France's gender equality index and which would measure the progress made by companies vis-a-vis the training and recruitment of seniors.

Impact Of Pension System Changes

1. Boost the employment rate among 60-64 year-olds. In France, the employment rate in this age category is just 33% compared with 61% in Germany and 69% in Sweden.

2. The pensions of the poorest 30% will increase by 2.5%-5%, according to the government.

3. Gross savings of 17.7 billion Euros per year by 2030.

4. Balanced pension budget by 2030. Existing forecasts without any reform show a pension budget deficit of 13.5 billion euros in 2030.

Shutting Down France

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In a joint statement, all the main unions called for the government to withdraw the bill and warned that they would seek to bring France to a standstill from March 7 if their demands were not met. Another strike is already scheduled for February 16.

"If the government continues to remain deaf then the inter-union grouping will call for France to be shut down," they said, as per Reuters.

The French Spend Largest Number Of Years In Retirement

The French spend the largest number of years in retirement among OECD countries - a benefit which a substantial majority of people are reluctant to give up. For the uninitiated, the OECD (Organisation for Economic Co-operation and Development) is an intergovernmental organisation with 38 member countries that aims to stimulate economic progress and world trade.

Overall in the world as well, the French are amongst those who spend the largest number of years in retirement.

wsj/zuma press

President Emmanuel Macron says the reform is "vital" to ensure the viability of the pension system.

In the central western city of Tours, 40-year-old fireman Anthony Chauveau told Reuters that opposing the reform was crucial because the difficulties of his job were simply not being taken into consideration.

"They are telling us that we will need to work two more years... our life expectancy is lower than the majority of workers," he said.

The peaceful protests in Paris were partly marred by some minor clashes. A car and some rubbish bins were set on fire and police forces used teargas and stun grenades in their attempt to disperse some of the more radical elements in the protests, as per the Reuters report.

Also Read: From France To Nepal-List Of Countries Adopting UPI For Payments

Suggestions For Amendments

The opposition has suggested thousands of amendments to complicate the debate and ultimately try to force the government to pass the bill without a parliamentary vote and through decree, a move that could potentially sour the rest of Macron's mandate.

Britannica

Raising the retirement age by two years and extending the pay-in period would yield an additional 17.7 billion Euros ($19.18 billion) in annual pension contributions, allowing the system to break even by 2027, according to Labour Ministry estimates, as per Reuters.

Unions say there are other ways to do this, such as taxing the super rich or asking employers or well-off pensioners to contribute more.

"Even though at my age, I'm not really affected (by the pension reforms), it's important to be vigilant about our society, that there is solidarity, that it's one where people are very close to one another, and to be vigilant about caring not only for our elderly but also for our children," said Kamel Amriou, 65, a retired graphic artist.

Also Read: Child's Higher Education v/s Your Retirement: Which One To Prioritize

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