Govt.-union pension talks fail in France, strikes to continue

French labor union members and workers on strike attend a demonstration in Paris as France faces its 15th day of consecutive strikes against French government's pensions reform plans, December 19, 2019. /Reuters Photo

The French government and labor unions ended talks on pension reform on Thursday afternoon without reaching a deal to break the deadlock.

After the talks, Philippe Martinez, leader of the hardline CGT union, said that "the prime minister hasn't heard what the street is saying." Five out of the eight unions called for further actions and cross-sector demonstrations on January 9, he added.

Laurent Berger, leader of the more moderate CFDT, refrained from calling for cross-sector demonstrations but said he still disagreed with the government's aim of encouraging people to work until age 64 before they draw a full pension.

Prime Minister Edouard Philippe said new roundtable discussions will be held on the early days of January. "There are still disagreements. We want to overcome them in talks in January," said he, adding that he hopes parliament can vote on the pension reform law by summer at the latest.

He reiterated that the financial balance of pension system remains top priority and the government is fully committed to ending the current special pension regimes.

However, about the new "pivot age" of 64 for workers to earn a full pension – two years beyond the official retirement age, which is the most controversial element in the government's reform plan, the prime minister said, "there are margins of maneuver. They are not huge, we all know that. But they exist."

French Health and Solidarity Minister Agnes Buzyn (L) and French High Commissioner for Pension Reform Laurent Pietraszewski (R) listen as French Prime Minister Edouard Philippe speaks to the press after a meeting with labour union representatives at the Hotel de Matignon in Paris, December 19, 2019. /Reuters Photo

Philippe once again called on unions to observe a "Christmas truce" so as not to jeopardize people's holiday travel plans.

The CGT-led union coalition reaffirmed that there would be no truce for strikes over the Christmas period.

France has seen 15 consecutive days of strikes against the government's pension reform plan, with public transport crippled, schools closed, power cut in certain regions and several days of massive demonstrations in major cities.

The government wants to end all special schemes in current system that allow workers in certain public sectors to retire earlier than average and with more benefits.

Under the new system, all pensions will be calculated in a point-based way, with same rules applying to all, regardless of profession or sector. The legal retirement age remains 62 but people must work till 64 to qualify for a full pension. Critics fear that citizens will have to work longer while ultimately earning lower pensions.

(With input from agencies)