French in clash on pensions at 60

Unions and the major employers' association in France seem set on a collision course on the issue of pensions at 60 and how pensions should be financed.

In France all workers have the right to a basic pension which is supplemented by an additional pension, the contributions for which are obligatory for both employers and employees.

ASF, the organisation which collects the contributions and administers the additional pension, is jointly run by unions and employers, and the agreement between the two sides under which it operates is currently under discussion.

The unions have been seeking a number of improvements and, as Labour Research went to press, were organising a joint day of action on 25 January. The day of action, supported by all the main union confederations, calls for the right to retire at 60, higher pension levels and improved arrangements for early retirement. (At present employees can retire at 65 or after 40 years of contributions.)

The main employers' association, Medef, is entirely opposed to this and wants working life to be extended to take account of the ageing population. At its annual meeting last month it threatened to move from words to deeds by refusing to collect the contributions going to those retiring between the ages of 60 and 65 from this month.

Negotiations will continue but the pressure is on from both sides.