Grievances over France’s proposed pension overhaul have brought thousands of citizens to the streets in protest. Public transportation in the country’s major cities has been thrown into chaos and many other industries are affected as well. French president Emmanuel Macron is under mounting pressure to step back from the change, as the demonstrations continue and union officials warn of additional public resistance to come. Here’s a closer look at the protests, why they’re happening, and what could happen next.
How This Pension Overhaul Could Impact France
The current pension system in France is a “pay-as-you-go” system, with taxes currently collected from active workers going to fund the retirement benefits of retired citizens. Macron and his supporters believe that the current system is unsustainable, with fewer and fewer workers paying taxes into an ever-growing pool of retirees. The proposed pension overhaul is an attempt to reform the pension system and make it more viable in the long-term.
Under the new system, the retirement ages for both men and women would be increased, and the complicated system of special pension schemes would be eliminated in favor of a “universal points” system. This points system would be applied to all career paths, ensuring that those with longer careers would receive larger pensions than those who retired earlier.
The unions, however, suggest that the reform proposals will significantly reduce the pensions that their members receive and could even have the unintended consequence of creating short-term contract work positions, where once there were longer-term employment opportunities.
What the French People Are Protesting
As a result, the unions have organized large-scale protests since early December, and they have been joined by many members of the public. Over 800,000 workers and citizens took to the streets of France in December to protest the changes. Hundreds of transport strikes have caused chaos in cities across the country, and unrest is reverberating through the economy.
The demonstrations have continued into January and it’s estimated that nearly two million people were present in cities across the country on January 31st. Paris saw some of the largest and most intense demonstrations, with pictures of burning barricades and clashes between the police and protesters leading the global news coverage.
The unions have pledged to continue protests until their demands for a full repeal of the reforms are met. There is growing concern that the impact of the demonstrations will be prolonged and will potentially have a large effect on the French economy.
Why Are So Many People Protesting?
The French Pension overhaul is a complex issue and the millions in the streets are not just protesting pension reform. Many are also rallying against wider economic inequality and the way Macron’s policies have been viewed as primarily benefiting the wealthy. Recent surveys suggest that many French citizens perceive that the pension reforms will mostly benefit the wealthy, while disproportionately affecting workers in “unprotected” positions such as those in the health and service sectors.
The French Are Not Alone in Their Protest
Bonnie Castillo, Executive Director of the National Nurses United, a union in the United States, has declared support for the French strikers: “We join with the workers of France in their ongoing demonstrations today as they strive to protect the pensions of their society and the senior members of their community.”
The workers of France are counter-arguing President Macron’s argument for pension reform, which is that a pension crisis is looming and current system is not sustainable. In contrast, many workers in the demonstrations suggest that Macron’s proposed changes will lead to more privatization and profit-seeking corporations enacting cost-cutting measures. Meanwhile, the individuals who will be most affected by the reforms, the retired and soon-to-retire, are being cast aside.
The Overall Impact of the Protests
The protests are having a tremendous impact on France, as the demonstrations have brought economic activity to a near-standstill in cities across the country. As of January 31st, over 50% of all trains were cancelled, over 400 schools were closed, and $330 million in lost wages has been reported. As long as the demonstrations continue, this impact will only grow.
President Macron’s approval ratings have dropped to 25%, and he is facing increasing pressure to adjust the proposed reforms to appease the protestors. He has maintained his position of proposing a more “universal” points system for pensions as the best solution. It remains to be seen whether or not he will hold his position in the face of continued demonstrations.
What Could Happen Next?
It’s difficult to predict how this pension dispute will play out. The unions continue to demand a full repeal of the proposed reforms and presumably will not back down until the demands are met. Macron and the coalition behind the proposed system appear equally unwilling to abandon the proposed reforms.
If President Macron and the unions remain deadlocked, the demonstrations will likely continue, and the French economy will remain in an uncertain state while the standoff continues. From an international perspective, the protests are also making Macron’s already-challenging task of pursuing a unified European economic strategy even more difficult to achieve.
Despite the divisions, both sides have expressed a willingness to work together to resolve the issues surrounding the pension system. On 2nd January, union military leader Philippe Martinez called for a “dialogue between the government, trade unions and citizens” and Macron responded with a call for “calm and responsibility”. An emergency meeting, involving high-level government leaders and union representatives, has been called to assess the situation and provide a stabilizing force.
The proposed pension reforms have caused a great deal of discord in France and have drawn millions into the streets in protest. President Macron is under increasing pressure to assess the proposed policies, address the grievances of those affected and find a resolution that will appease both sides. The impact of the protests will continue to be felt for some time to come, both in France and on the global level, and the result of the disagreement will shape the shape of the pension system for many years to come.
