Labour Research December 2002

European news

French pensions

Union concern over French government plans to change the pensions system led to demonstrations by electricity and railway workers last month.

The government announced in the summer that it was aiming to propose changes in the first half of next year. The unions fear that the final result may be a higher retirement age, currently 60, greater difficulties for those retiring early, and worse pension provisions for public sector employees.

Labour minister Francois Fillon recently described early retirement as a "catastrophe for the national economy and for our pension schemes" and suggested that employees' period of contributions should be extended.

With unions also worried about the reversal of protections for redundancies and planned changes in sickness insurance, there is the possibility of a wider conflict.