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Retirement at 60

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30 January, 2001

It is not very often that we see the major French trade unions united in a common struggle. So when it does happen, it has an enormous impact, not just on the mass media, but especially on the result.
Like the Italian and, more recently, German trade unions, the French have picked up the fight against employers and "friendly" governments for the official pension age to be retained at 60. Last week, more than 300,000 people representing both the public and private sectors walked hand-in-hand through the major cities of France to demonstrate their disagreement with the French Employers' Association (Medef) and its attempt to raise the retirement age from 60 to 65.
The huge demonstration was brought about when the Medef walked out of negotiations and launched a campaign to persuade companies to stop paying any further contributions into their pension funds. By doing so, they would put these pension funds in a very difficult situation.
In an attempt to excuse their behaviour, the employers, through the Medef, claimed they had actually ceased paying contributions into these funds because the previous pension agreement expired on December 31, 2000, and there was no longer an agreement in force.
This is, of course, utter nonsense.
The issue of pensions is on the top of the agenda of the trade union movement in Europe, and we can expect many more and important fights over pension rights in the future. Economists, liberal and conservative politicians and others as well have tried to make pension systems the scapegoat for their economic and financial problems, claiming they are too expensive, too generous, that they are the major cause for state budget deficits, etc. etc.
These are some of the arguments which have been used to try to convince people to accept fundamental changes in the system.
Pension funds are constituted of money that workers have given up receiving as part of their salary, that is "deferred pay." They are huge collective savings which are supposed to be used for productive investments and to guarantee retired workers a decent standard of living after a long working life.
What we should discuss is the freedom for each one of us to be able to choose a flexible pension age within certain limits. In the Nordic countries, this type of option has existed for many years, and in Sweden it was the metalworkers' union which was instrumental in introducing such a system. This type of arrangement must also be possible in Germany, Italy, France and elsewhere.
The other question which I believe has to be discussed is how to use the huge sums of money which are invested and which rightfully belong to the workers for productive and ethical investments. Here we can learn from the experiences of American trade unions. These funds cannot be left in the hands of a few gamblers. They have to be used for good, long-term, productive investments which do not undermine jobs and the livelihoods of the workers who contribute to them.
Those who insist on trying to use the issue of pensions and retirement for their political purposes should take heed from the experiences of the populist conservative leader of Forza Italia, Mr. Berlusconi. When he was in power, he tried to get his hands on the pension funds, but the Italian trade unions responded by bringing one million people onto the streets of Rome. A few days later, Berlusconi's government had to leave office.
So please, Employers and Governments, hands off the pension funds!