French trade unions welcome PM's decision to delay pension reform talks

Trade unions said they are satisfied with level of dialogue with French Prime minister Jean Castex. © Thomas COEX / AFP.

The trade unions representatives who met Castex and his ministers on Friday said talks with the newly appointed prime minister had been very productive and covered a number of pressing issues: kick-starting the economy, youth employment, retirement and unemployment benefits.

Castex said negotiations over the overhaul of the country's retirement system would be delayed until 2021 because of the economic crisis brought by the Covid-19 pandemic.

He announced that the pension reform “will be maintained” but his government will not push to finalise it before September.

⚠ Réforme des retraites : le premier ministre Jean Castex a proposé aux partenaires sociaux de repousser les concertations "au moins jusqu'à la fin de l’année" 👉 #retraite #JeanCastex #reforme https://t.co/iYjuLPYQCf pic.twitter.com/ktLmqEmqUq

— ToutSurMesFinances (@Toutsur) July 17, 2020

• French left unites to call for major system overhaul after Covid-19

The reform was a key promise in President Emmanuel Macron’s 2017 presidential campaign, and the government had hoped to pass the pension law in the coming months. But with the economy now expected to shrink by at least 11 percent this year, increasing unemployment is threatening many of Macron’s plans.

The government is now focusing on a 100 billion euro economic recovery package instead.

The pension overhaul, a centrepiece of Macron's sweeping plan to reform the French economy and institutions, would replace the current system of 42 separate schemes with a single point-based system which the government says would be fairer and more sustainable.

But unions are resisting a new "pivot age" when workers would qualify for a full pension, beyond the official retirement age of 62.

Macron maintains that the pension reform will be fairer to women and some low-income workers who are not on the public pay-roll, such as agricultural workers.

The plan prompted weeks of crippling strikes and protests by unions, who fear the changes will force millions of people to work longer for less money.

The unions said that Friday’s dialogue with Castex was marked by openness and clarity on the part of the Prime minister.