World Economy: Xavier Bertrand has presented the social partners its pension reform,

Apr 28, 2008

Xavier Bertrand has presented the social partners its pension reform,

The unions opposed the move to 41 years of contributions
Reuters
Xavier Bertrand has presented the social partners its pension reform, confirming the gradual shift of the contributory period of 40 years to 41 years in 2012 which unions are opposed.

Considering the Government's plan "serious", the secretary general of the CGT, Bernard Thibault, called for "mobilization of magnitude, starting on 1 May."

"It will in the future for employees work harder, work longer and earn less," he argued.

François Chérèque, leader of the CFDT, said for his part that the government was "not at stake."

"We'll see depending on final decisions, but for now it seems that the government is not ready to change many things in its proposals," he said.

Before receiving the unions, the Minister of Labour had sent Sunday evening a working document of trade unions and employers in which he defends a "balanced package" of areas for reflection and action "fair, generous and expected" to ensure financing of pensions and restore the balance of accounts.

For the government, extending the duration of contribution is the only valid response to increased costs associated with longer life.

All employees' unions oppose this measure, contained in the 2003 law, which stipulates that "unless new element" the duration of contribution will increase to 41 years in 2012, explaining that it would weigh on a small number of workers.

They are a priority of the rising employment rate of 55-64 years, much lower than in France to the European average, which is a precondition for extending the duration of contribution.

"You can lengthen the contribution to 41, 42 years, but if you can not work if you're not in a position to extend your right you will have a decrease your level of pension is therefore a market of dupes ", said the first secretary of the Socialist Party François Hollande on i-Tele.

In the document entitled "Rendez-vous 2008 on pensions," Xavier Bertrand stressed that it "does not claim to be exhaustive and does not include discussions on the future of our pensions".

The Government confirms that the duration of insurance required to qualify for a pension at full rate "will be increased by a quarter per annum to 41 years from 1 January 2012".

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It also provides for the adjustment of the rate of pension will be increased to three times (56% from 1 January 2009, 58% from 1 January 2010 and 60% from 1 January 2011) and 5% per annum of the minimum age by 2012.

To take account of accelerating inflation, the government will carry out a further revaluation of all pensions to 1 September 2008.

For "confirm and amplify the mobilization for employment of older workers," Xavier Bertrand propose to liberalize aggregate employment and raising retirement age gradually to be excused from seeking employment.

Companies will open negotiations on the employment of older workers in order to reach an agreement, including a quantified before the end of 2009.

Those who fail would impose sanctions "from 2010 in the form of additional retirement contributions."

The CGPME, the first organization to be received by the Ministry of Labour Monday morning, hailed a "project broadly balanced".

Jean-Claude Mailly, general secretary of FOR, who called for demonstrations on May 15, expressed concern for its part of a reform which would "gradually towards a system of individual retirement".

The document "maintains some points which are unacceptable for us" including 41 years of contribution, "he said before meeting Xavier Bertrand. Moreover, "in the scheme which has been distributed, which is doing well? Employers, it demands nothing to businesses," he said.

World Economy

Xavier Bertrand has presented the social partners its pension reform,

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