French Protests Dwindle as President Sarkozy Is Set to Sign Pension Bill
Protests and strikes over the last two months in France against the government’s plan to raise the retirement age are winding down as train services return to normal and refinery staff go back to work.
Employees at the Channel port of Le Havre voted to resume working today, and the 33-day-long strike at the main port of Marseille on the Mediterranean ended. Strikes were called off at all French refineries, ending two weeks of fuel shortages.
The climbdowns come after five national strikes failed to push the government of President Nicolas Sarkozy into withdrawing its bill that will raise the minimum retirement age to 62 from 60. The bill was approved by parliament last week and is now being vetted by the country’s constitutional court.
“As soon as the constitutional court has given its approval, I will promulgate the law,” Sarkozy said at a press conference in Brussels today. “There is only one winner in this affair, and that’s the French social security system.”
The protests and strikes led to transport disruptions, flight cancelations and shortages of fuel. Some refineries and train workers never went back to work after an Oct. 12 national strike and, at one point, nine out of France’s 11 refineries were idle and almost half of all service stations were dry. Demonstrations brought about a million people to the streets.
Exxon Mobil Corp. started pumping crude from Le Havre port to its Gravenchon refinery, which will take several days to return to normal production, said Catherine Brun, a company spokeswoman. Only about 15 percent of gas stations are still dry, the government said.
No Retreat
“We are in the process of seeing the strike movement wind down,” said Bernard Vivier, director of the Paris-based Superior Institute of Work, which trains labor negotiators. “It was predictable from the start that they wouldn’t make the government bend. There are some Trotskyite unions that want to keep going, but the major unions are now seeking an exit.”
Unlike previous presidents who retreated in the face of labor action, Sarkozy held firm because the reform is financially necessary, Vivier said.
One out of 10 pensions is funded by government borrowing. The state pension fund will lose 10.7 billion euros ($14.9 billion) this year, with the shortfall reaching 50 billion euros in 2020 without a change in policy, according to the Budget Ministry. The bill also raises the age for retiring with a full pension to 67 from 65.
“What is important is that the French can count on retirement, and know that their social security system works,” Sarkozy said.
Unpopular Sarkozy
Unions have called for one more day of national protests, on Nov. 6, although not for any further strikes.
The state railroad said intercity high-speed service is back to normal, after running at about two thirds schedule for the past two weeks. Paris public transport and airports are also back to normal.
Sarkozy’s two-month battle with unions and workers has hurt his popularity, which fell to a record low this month, with less than a third of those questioned approving his performance, an Ifop survey for the Journal du Dimanche showed Oct. 24. His approval rating fell to 29 percent, against 32 percent in September, the lowest since his May 2007 election.
“Some will say Sarkozy won because he has passed a tough reform,” said Jerome Fourquet, deputy director at Ifop. “But for many French people this reform created pain and resentment, and the protests could be sparked again with any future reform.”
To contact the reporters on this story: Gregory Viscusi in Paris at gviscusi@bloomberg.net.
To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net.
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