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New government compromise offer may end France strikes

France's government on Saturday offered a possible compromise to unions waging a crippling, weeks-long transport strike against pension reform.

New government compromise offer may end France strikes
LIONEL BONAVENTURE / AFP

The overture from Prime Minister Edouard Philippe came as protesters smashed storefronts in clashes with police in Paris, with the transport shutdown against the pension overhaul dragging into its sixth week.

“I am willing to withdraw from the bill the short-term measure I had proposed,” said Philippe, offering to scrap the most contested initiative that would in effect have raised the retirement age by two years to 64.

French President Emmanuel Macron hailed the plan as “a constructive and responsible compromise.”

READ: French police face probe after video emerges of Paris protest clashes

The hardline CGT union, which has taken a leading role in the strike action, swiftly poured cold water on the government's offer, calling the compromise proposal “a smokescreen to get some unions to sign on” to the overall reform.

The more moderate CFDT and UNSA unions welcomed Philippe's offer, meaning the government may succeed in splitting the unions on the reforms.

An inter-union body which includes the CGT and fellow hardline union the FO among others called for a new days of protests next week.

'We are still here!' 

The government's move came a day after they met with unions in a bid to end the labour action that has frustrated Paris commuters, ruined December holiday travel plans, and carved away at business bottom lines.

Demonstrators in the capital, some masked and hooded, broke shop windows along their protest route Saturday, set fires and threw projectiles at police in riot gear, who responded with tear gas.

Several stores were ransacked as marchers brandished union flags and chanted defiantly: “We are still here!” and “Macron resign”.

Protests were also held in Marseille, Toulouse, Lyon, Nantes and elsewhere. The interior ministry said 149,000 people had turned out throughout France.

The CGT put the overall figure at half a million, saying the 150,000 marched in Paris alone.

In one of Macron's signature reforms, the government seeks to fuse 42 existing pension schemes into a single, points-based system it says will be fairer and more transparent but which unions fear will see millions work longer for a smaller retirement payout.

Particularly vexing was the proposal to impose the 64 “pivot age” that people would have to work until to qualify for a full pension — two years beyond the official retirement age.

Contribute more, or work longer

On Friday, Macron said that for the pension system to remain viable as a growing number of retirees live ever longer, “either one has to contribute more, or one has to agree to work a little longer”, while insisting he does not want to see pensions lowered.

The government says the “pivot age” would save five billion euros ($5.6 billion) by 2023 and some 11 billion euros by 2026.

Philippe said the concept of an “age of equilibrium” would remain part of the reform, though he did not spell out what this means.

The premier also announced there would be a conference, as demanded by union leaders, to study ways of financing the pension system, which must come up with proposals by the end of April.

If it succeeds, MPs will be able to work the resulting proposals into the draft pension reform bill the government hopes to introduce to parliament by February 17.

If it fails, the government will take the “measures necessary to achieve equilibrium” in the system by 2027, the prime minister warned. On Day 38 of the strike, some were fed up.

“We have had enough,” estate agent Christophe Delvallee, 65, told AFP at the Aulnay-sous-Bois train station outside Paris.

“It has been a month and a half. These are people with many advantages and employment guaranteed for life, and who are making life difficult for the rest of us.”

His daily 75-minute commute to work now takes up to 2.5 hours.

Opera closed

Commuting has become a daily headache for many, with train services and Paris metro lines again curtailed Saturday, and regional and inter-city train numbers slashed.

The Paris rail operator RATP said after Philippe's announcement Saturday that all metro and suburban trains will run on Sunday, though still offering only partial service.

Most rail workers are aligned to the CGT. The Paris Opera, which was to launch its official new season on Saturday, cancelled its performance of The Barber of Seville due to opera workers' continuing participation in the strike.

Like railway workers at the forefront of the strike action, opera staff enjoy early retirement benefits under their sectoral pension scheme, and are reluctant to give these up.

The Paris Opera says it has lost 12.3 million euros ($13.7 million).

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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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