Tuesday, November 20, 2007

Mardi Noir: France faces 'Black Tuesday'


By John Lichfield in Paris
Published: 20 November 2007

Strikes. Sabotage. Student unrest. Transport, schools and hospitals disrupted. National newspapers halted. Factories running out of raw materials.

France faces a Black Tuesday today. Is this President Nicolas Sarkozy's " Thatcher moment"? Is this another May 1968? Is the New France promised last spring by a combative new president, struggling to emerge from the muddled, but often charming, Old France of street protests, government climbdowns and generous social benefits?

Something is happening across the Channel but how significant the moment will prove to be is unclear. Both President Sarkozy and the more moderate trade union leaders have been trying to avoid a political train-wreck. Some militant unions and transport workers seem to have been determined to provoke one. (According to the state railway company, the SNCF, a fringe of rail workers risked real train crashes yesterday by moving freight locomotives and wagons to obstruct lines and by blocking points with ballast.) A solution to a six-day-old railway and Paris transport strike, over early retirement rights, now seems possible tomorrow. Both government and unions have compromised on the pre-conditions for talks.

At the same time, tens of thousands of other public sector workers – teachers, nurses, air-traffic controllers, postal workers – will go on strike for 24 hours today over pay claims and job cuts. Print workers in Paris walked out last night – in an entirely separate dispute – threatening to block the publication of all national newspapers this morning. A growing protest movement by students, who are opposed to private, extra funding of state universities, spread yesterday to schools for the first time.

There were warnings yesterday of serious damage to the French economy if the transport dispute continues. Fifteen factories are already running short of raw materials, especially steel. In Paris, some restaurants said that they had lost up to €50,000 in turnover since the strike began. One economist estimated the strike had knocked 0.1 per cent off the French GDP this year – the equivalent of €2bn.

All the disputes have been provoked, to one degree or another, by President Sarkozy's plans to make France more competitive, to make France work harder, to roll back some social benefits. Some of the reforms are mild in the extreme. The proposed changes in campus funding hardly address the morass of mediocrity in the French university system. The proposed abolition of early-retirement privileges for 500,000 transport, power and other public sector workers is important symbolically, to M. Sarkozy and the unions, but will hardly transform the stuttering French economy or generate the " ultra-capitalist", Anglo-Saxon nightmare described by the far left.

Efforts to resolve the dispute have been muddled by the fact that eight trade union federations are involved. Their political allegiance ranges from the social-democratic CFDT, which called for an end to the strike last Friday, to the Trotskyist-aligned SUD, which wants to turn the dispute into a general uprising against M. Sarkozy.

Most transport workers – three in four on the railways; four in five in the Paris transport system – have voted with their feet and returned to work. A militant rump of workers is holding out, some politically motivated, others sincerely anguished by the thought of losing long-held early retirement privileges.

President Sarkozy wants to abolish their right to retire after 37.5 years, rather than 40 years like other French workers. The point may seem a small one. To President Sarkozy it is a first step towards establishing the principle that France must work harder. Early retirement and the 35-hour week mean that France works less than other nations: an average of 617 hours a year per man, woman and child, according to OECD figures, compared to 800 hours in Britain.

The government has authorised a compensation package – worth €90m a year for rail workers alone – including pension bonuses and higher pay rates for older workers. Most moderate, and even some less moderate, union leaders now seem ready to do a deal. By prolonging the dispute, the more militant unions and transport workers have handed M. Sarkozy his "Thatcher moment" . He will be able to claim that he stood firm and won a point of principle which had eluded previous governments.

In truth, President Sarkozy, for all his undoubted energy and bravado, has adopted a very low profile in this dispute. He has not wanted directly to take on a Thatcher or a Reagan mantle and ask the question: who runs France, the unions or the government? A speech, or public appearance by him, to raise the political stakes and claim the ideological high ground, was rumoured to be imminent at the weekend. It has now been put off until tomorrow and may not happen at all.

Whether M. Sarkozy is the fearless, social and economic reformer that he sometimes claims remains to be seen. But the dispute has suggested France has already changed in two important ways. The national leadership of even radical union federations, like the CGT (Confédération Gé*érale du Travail) has accepted the old street-fighting, all-or-nothing approach is no longer possible. They have to negotiate intelligently on France's – and their members' – future.

When the same rail unions defied a previous centre-right government on the same issue for two months in 1995, they had wide public backing. Most French people saw the union struggle as a symbolic defence of the French social system. On this occasion, 70 per cent or more of French people have supported the government.

If the transport dispute ends in compromise this week, President Sarkozy has a chance to push forward with his reform programme. His cautious approach to this dispute suggests reform is likely to be gradual, rather than a Big Bang. So be it. M. Sarkozy is no Mrs Thatcher but then France is not Britain.






Sarkozy: strikers are taking France hostage


By John Lichfield in Paris
Published: 21 November 2007

Hundreds of thousands of public employees, joined by students and striking railway workers, took part in raucous demonstrations across France yesterday to protest against President Nicolas Sarkozy's plans for state sector job cuts and other economic reforms.

President Sarkozy, facing the most concerted protests since his election six months ago, made a defiant speech last night, insisting that he would not back down and accusing a minority of railway and Paris transport workers of "taking France hostage". However, he also attempted to appease more moderate protesters by promising "initiatives" in the next few days to "boost purchasing power".

The future of the broad but internally divided protest movement will be shaped by talks today between the Government, employers and transport unions. The disruptive rail and Paris transport strike over early retirement rights entered its eighth day last night. The government believes the disparate grievances of students and public sector employees can be contained if the transport strike ends.

The great majority of railwaymen and Paris transport workers have already abandoned the strike. A hard core – including many Métro train drivers – has refused to return to work unless President Sarkozy withdraws or substantially weakens his plans to remove their rights to early retirement. There are hints that some union leaders are prepared to shift their ground and discuss a compensation package offered by the government today. But many strikers, and the most radical union leaders, insist that they will continue the strike until their early retirements rights are guaranteed.

Public sector employees – including teachers, air-traffic controllers, nurses postmen, street cleaners, refuse collectors and junior civil servants – were among those who staged a one-day stoppage yesterday in protest against plans for cuts in public sector jobs and the erosion of their standard of living by seven years of low pay rises. The eight trades union federations claimed that about half the 2.5 million state sector workers had joined the strike; the government said that it was more like one in three.

An estimated 700,000 people joined noisy, exuberant marches in Paris and many other large cities. The Paris march, through the Left Bank from Place d'Italie to Invalides, was festooned with banners and placards mocking M. Sarkozy and his recent marital problems. "Sarko everywhere, love nowhere," said one banner. Another read: "Sarkozy and France: we too want a divorce."

The rallies were supposed to demonstrate worker solidarity, but the transport dispute in particular is as much a multi-layered battle between union factions as a straight fight between unions and government.

François Chérèque, the leader of the moderate CFDT – the largest of the eight, competing trades union federations – was booed and threatened when he joined the Paris march.

M. Chérèque has called for compromise on the transport strike and has attacked attempts by union federations aligned to the far-left to merge specific grievances into a political uprising. He argues that the government is not vulnerable on the transport dispute since most French people agree with M. Sarkozy. He suggests, however, that the centre-right President is extremely vulnerable on cost of living and pay.

Purchasing power has fallen in the past six months and M. Sarkozy recognises that he is politically weak on this point. He is expected to make a television address this week, possibly tomorrow, to restate his determination to press ahead with his state sector employee reforms. But he is also likely to promise tax cuts for those on modest pay, including a tax break on the "13th" month of salary paid to some employees before Christmas.

Have your say: What readers think ofthe strike action

Yesterday's front page on the French strikes prompted a passionate debate on The Independent's website, with readers more or less equally divided for and against the protests. NorrisLockley, who lives "parallel lives" in France and Yorkshire, says there is "no comparison in the quality of life and services, with life in France winning hands down". Nicolas Sarkozy's attack on the French social care model sticks in French throats, he says.

Patty, from the US, says: "The world, and alas France, is changing. To be competitive in this global economy the workers must be realistic and realise that their lives will change."

Briar says: "Bravo to the French. They are a truly democratic country with people prepared to take effective, non-violent action. So much less cringing and indolent than the English, desperate to appear moderate and middle class."

Ronp123r asks: "Were the rail employees who blocked the train lines (and risked a catastrophic train crash) immediately arrested for attempted murder? No? Well, that's problem number one."

John Mullen says: "As usual, John Lichfield is witty... and pro-Sarkozy. But take a wider picture – look at the statistics for pensioner poverty in Britain and in France, and you will see that the strikers are absolutely right. It is because of the different strikes over pensions (victory in 1995, compromise in 2003) that pensioner poverty is much lower in France."

Mathieu Chabert, a French Erasmus (EU exchange) student in Manchester, is depressed by the strikes – even though he voted against President Sarkozy. "Not only are unions not representatives of the majority of French population, but this reform is definitely necessary for us. First of all, early retirement privileges were established at the beginning of the century for workers with a difficult and hard job. Nowadays, this situation is unacceptable... We have to reform this unfair situation to help people who are in need."







German strike 'could be over by Christmas'


By Tony Paterson in Berlin
Published: 20 November 2007

The worst rail dispute in German post-war history could finally be over by Christmas, a union leader behind the series of crippling strikes said yesterday. Manfred Schell, the head of the 34,000-member train drivers' union, the GDL, offered commuters meagre hope of a breakthrough as he prepared to meet managers of the state rail operator, Deutsche Bahn, today. "A compromise is on the way and the strike will be over by Christmas," he predicted.

The GDL, which paralysed the network last week with strikes lasting up to 62 hours, has been demanding a pay rise of up to 31 per cent. But Mr Schell said yesterday it was unlikely his union would turn down an offer of 10 per cent or more.

The walkouts, which crippled commuter and freight services and cost an estimated £53m in lost revenue, have prompted warnings that German unions could face Thatcher-style reforms if the drivers' action continues for much longer. Opinion polls suggest 64 that per cent of Germans oppose the strikes, but 33 per cent would be willing to pay higher fares to fund a pay rise.

Mr Schell's offer of peace by Christmas came after Deutsche Bahn said it would make a new offer to the union during their first face-to-face meeting in weeks today. Mr Schell said the rising pressure on Deutsche Bahn as well as the union to reach a deal would unavoidably mean a compromise had to be reached soon.

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