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France: Macron to hold crisis talks on pension reforms

French President Emmanuel Macron will on Sunday meet ministers involved in his radical pension reform which has prompted a nationwide strike and brought key transport services to a standstill.

France: Macron to hold crisis talks on pension reforms
picture alliance/Benoit Tessier/Reuters Pool/AP/

Transport in Paris remained paralysed Sunday, with only the two driverless lines of the Metro in operation while national rail operator SNCF warned just one in six high-speed trains would be running.

The strikes, which began on Thursday over the plans for a single points-based pension scheme, recall the winter of 1995, when three weeks of huge stoppages forced a social policy U-turn by the then-government.

Prime Minister Edouard Philippe insisted his government would not abandon the plan.

“If we do not make a far-reaching, serious and progressive reform today, someone else will make a really brutal one tomorrow,” Philippe was quoted as saying by Le Journal du Dimanche.

But the leader of the hardline CGT union, Philippe Martinez, told the paper “We will keep up until the withdrawal” of the reform plan. The prime minister is due to unveil full details of the reform to merge the 42 existing pension plans, which could spark more union anger.

“We can provide extremely positive answers for many people who suffer injustices in the current system: women, farmers, and career-changers in particular,” he said.

Unions have vowed a second series of mass demonstrations nationwide on Tuesday and there is expected to be little easing of the transport freeze over the coming days.

In a joint statement, the three main rail unions called for the strike to be stepped up on Monday.

Biggest challenge

The strikes could prove to be the biggest domestic challenge yet for Macron, who came to power in 2017 on the back of promises to radically reform France and has sought a prominent place on the international stage as Europe's number one statesman.

Macron was widely believed to have ridden out the challenge posed by the “yellow vests” whose weekly Saturday protests against inequality in France had shaken the government over the last year.

But the yellow vests have also sought to use the momentum of the strike movement and held a fresh protest in Paris on Saturday and others in several cities across France.

Unions say Macron's proposal for a single-pension system would force millions of people in both the public and private sectors to work well beyond the official retirement age of 62.

At least 800,000 took part in rallies around the country on Thursday, according to the interior ministry — one of the biggest demonstrations of union strength in nearly a decade.

A crucial week now lies ahead: commuters will struggle to get to work on Monday and more giant nationwide protests are planned for Tuesday.

Transilien, the operator of the Paris region rail network, warned of severe shortages Monday and recommended using other means of transport such as car-sharing.

The international Eurostar and Thalys rail services have been hit by cancellations.

Tourists in Paris also faced some disappointments: the world-famous Louvre Museum said some rooms would be closed due to the strikes, while the landmark exhibition of painter El Greco at the Grand Palais was closed.

The Paris Opera and several theatres in the capital have cancelled performances over the last few days due to the strike.

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TRAVEL NEWS

German train strike wave to end following new labour agreement

Germany's Deutsche Bahn rail operator and the GDL train drivers' union have reached a deal in a wage dispute that has caused months of crippling strikes in the country, the union said.

German train strike wave to end following new labour agreement

“The German Train Drivers’ Union (GDL) and Deutsche Bahn have reached a wage agreement,” GDL said in a statement.

Further details will be announced in a press conference on Tuesday, the union said. A spokesman for Deutsche Bahn also confirmed that an agreement had been reached.

Train drivers have walked out six times since November, causing disruption for huge numbers of passengers.

The strikes have often lasted for several days and have also caused disruption to freight traffic, with the most recent walkout in mid-March.

In late January, rail traffic was paralysed for five days on the national network in one of the longest strikes in Deutsche Bahn’s history.

READ ALSO: Why are German train drivers launching more strike action?

Europe’s largest economy has faced industrial action for months as workers and management across multiple sectors wrestle over terms amid high inflation and weak business activity.

The strikes have exacerbated an already gloomy economic picture, with the German economy shrinking 0.3 percent across the whole of last year.

What we know about the new offer so far

Through the new agreement, there will be optional reduction of a work week to 36 hours at the start of 2027, 35.5 hours from 2028 and then 35 hours from 2029. For the last three stages, employees must notify their employer themselves if they wish to take advantage of the reduction steps.

However, they can also opt to work the same or more hours – up to 40 hours per week are possible in under the new “optional model”.

“One thing is clear: if you work more, you get more money,” said Deutsche Bahn spokesperson Martin Seiler. Accordingly, employees will receive 2.7 percent more pay for each additional or unchanged working hour.

According to Deutsche Bahn, other parts of the agreement included a pay increase of 420 per month in two stages, a tax and duty-free inflation adjustment bonus of 2,850 and a term of 26 months.

Growing pressure

Last year’s walkouts cost Deutsche Bahn some 200 million, according to estimates by the operator, which overall recorded a net loss for 2023 of 2.35 billion.

Germany has historically been among the countries in Europe where workers went on strike the least.

But since the end of 2022, the country has seen growing labour unrest, while real wages have fallen by four percent since the start of the war in Ukraine.

German airline Lufthansa is also locked in wage disputes with ground staff and cabin crew.

Several strikes have severely disrupted the group’s business in recent weeks and will weigh on first-quarter results, according to the group’s management.

Airport security staff have also staged several walkouts since January.

Some politicians have called for Germany to put in place rules to restrict critical infrastructure like rail transport from industrial action.

But Chancellor Olaf Scholz has rejected the calls, arguing that “the right to strike is written in the constitution… and that is a democratic right for which unions and workers have fought”.

The strikes have piled growing pressure on the coalition government between Scholz’s Social Democrats, the Greens and the pro-business FDP, which has scored dismally in recent opinion polls.

The far-right AfD has been enjoying a boost in popularity amid the unrest with elections in three key former East German states due to take place later this year.

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