French pension crisis continues as unions warn of more strikes news
26 October 2010

Europe's second largest economy is still reeling under the strikes over French President Nicolas Sarkozy's plans to raise the state pension age. Unions from numerous industry sectors have joined the growing strikes against unpopular pension reforms.

Tomorrow, the National Assembly is expected to bring into law an increase in the minimum retirement age by two years to 62.

 The reform bill passed the upper house of parliament on Friday, as 177 voted for the bill against 153 protesting ballots (See: French pension reforms invite union wrath)

Sarkozy insists pension reform is required to keep the system from going broke.

A majority of French citizens, however, oppose the legislation.  An opinion poll released on Sunday found that fewer than 30 per cent of those surveyed were satisfied with President Sarkozy's performance - the lowest level since he took office in 2007.

According to latest reports, a quarter of the France's oil refineries have voted to end their strike. The government had warned on Monday that the disruption was threatening the country's fragile economic recovery.

Finance minister Christine Lagarde told local radio Europe 1 that the strikes were costing France between 200 million and 400 million euros ($561 million) per day.
''France's international image was seriously spotted by the worsening strikes and demonstrations, which also impacted the fragile recovery of France,'' Ms Lagarde said.
''Today, we shouldn't be weighing down this recovery with campaigns that are painful for the French economy and very painful for a certain number of small and medium-sized businesses,'' she added.

''We are getting out of the (economic) crisis in quite good conditions and should not drag down the recovery with the movements that are painful for French economy, very painful for a certain number of parliament's members,'' the minister said.

Analysts say the return to work at the oil refineries could be a sign that the protest movement against the president's pension reforms is beginning to run out of steam.

The rubbish collectors of the  country's biggest oil port, Marseille, have ended their strike and started work today. ''The movement is not over but we're taking into account a particular cleanliness situation,'' the union's Elie-Claude Argy told reporters.

Some 10,000 tonnes of rubbish are clogging the streets of Marseille in what the mayor has described as a 'dramatic situation'.

However, the unions have called further national strike days on 28 October and 6 November, if Sarkozy does not withdraw the pension law or open negotiations.

Public transport across France remains extremely affected, although there is a minimum service running on most lines. In Paris, the metro, tram and bus services are almost normal while some RER lines (covering the greater Paris area) are running a reduced service. The RER B line serving the main Paris airports of Charles de Gaulle and Orly has been particularly hit.

Public transport is also affected in Lyon and Toulouse. Across France, TGV and inter city trains are running a severely reduced service while international train services (Eurostar and Thalys) are unaffected.

Airports are affected as air traffic controllers strike, with mostly short-haul domestic and European services affected, although long-haul international are mostly continuing as usual. Strike action for airport staff will continue tomorrow.





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French pension crisis continues as unions warn of more strikes