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STRIKES

Talks fail to end French pensions strikes as both sides refuse to budge

Talks between the French government and unions aimed at ending a 34-day transport strike failed on Tuesday to break the deadlock over a planned pensions overhaul, one of the most hotly contested reforms launched by President Emmanuel Macron.

Talks fail to end French pensions strikes as both sides refuse to budge

Macron's push for sweeping changes to the pension system has unleashed the longest transport strike in France in decades, causing weeks of travel chaos in Paris particularly.

As the standoff expanded to oil refineries, raising fears of petrol shortages, Prime Minister Edouard Philippe (pictured below)  said that both sides needed to “budge a little.”

While insisting the reforms would not be withdrawn, he made conciliatory noises about the government's proposals to extend the minimum age for receiving a full pension to 64 from 62.

The proposal, which aims to get the French to work longer, has prompted an outcry, including from the more moderate unions with which the government is hoping to do a deal.

“The pivot age (64) must be removed from the bill,” said Laurent Berger, the leader of the moderate CFDT union, France's largest, giving the government an ultimatum to rescind the proposal by Friday.

Philippe said that if unions could come up with a better way of ensuring that the pension system remains solvent, “I will take it.”

But the hardline CGT union, the biggest at state rail operator SNCF, continued to demand that the government scrap the reforms outright.

“The only overture we want to hear is, 'We're stopping everything',” CGT leader Philippe Martinez told France Inter radio.

On Tuesday, the strike hit oil refineries following calls by the CGT for a blockade of petrol shipments.

The government said five of the country's eight refineries were experiencing “temporary delivery difficulties” but the CGT insisted all eight were affected.

Retailers hurting

As the standoff continues, public support for the strike, which remained high throughout the first month, has begun to fall.

A Harris Interactive poll released Monday showed 60 percent backing the industrial action, down nine points since it started.

An Ifop poll gave it just 44 percent backing, down seven points from the previous survey on December 19-20.

The reform would eliminate 42 separate pension schemes that offer early retirement and other advantages, mainly to public-sector workers, in favour of a single system.

The CGT and FO unions have called for a new day of mass walkouts on Thursday, which could see schools shut and public transport even more impacted than usual.

Train operator SNCF says it has lost more than 600 million euros ($670 million) in ticket sales since the strike began on December 5.

The head of the Paris chamber of trades and crafts said retail sales in the capital were down by 30 to 40 percent.

'Gritting our teeth'

As the weeks pass, the number of striking rail and metro workers has tapered off, partly due to lost pay.

“For now, we are gritting our teeth,” Eric Challal, a striking customer service agent at Gare du Nord station in Paris, told AFP.

The strike is the longest continuous stoppage on French railways since the national rail service was created in the 1930s.

Macron made the pensions overhaul a key plank of his 2017 election campaign, saying a single, points-based system would be fairer, in particular for women and low earners.

The government has already made a series of concessions to the police, military, rail workers and Paris Opera employees, allowing them to continue to retire early or to keep their separate benefits for several years to come.

But most salaried workers born in 1975 or later would be impacted by the new system, in which people would earn points based on lifetime earnings.

Currently, most pensions are calculated on a worker's 25 best years of earnings — public workers, however, get payouts based on their last six months.

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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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