Employers' organization slams the door on pensions "conclave"

"Is it really serious, in a context of structural deficits and alarming projections, to continue down the path of returning the legal retirement age to 62 or reducing the required period of activity (...)?" the organization asked in a press release sent to AFP.

On the contrary, it advocates "drastic measures to restore the balance of our social systems."

The U2P is the first of the three representative employers' organizations - the others are the Medef and the CPME - to leave the table.

On the employee union side, FO had slammed the door on the first day, saying it did not want to "participate in a charade" whose aim would be to extend working hours.

"The international landscape continues to change (...), the Head of State called for an unprecedented financial effort to strengthen our military power," declared the U2P.

She also mentions the 51 billion euros spent in 2024 "without funds" to repay the interest on the debt, and the calculations of the Court of Auditors, according to which the 2023 reform - which provides for retirement at 64 - will itself generate a deficit of around thirty billion euros in 2045.

"The ship France is taking on water and the orchestra of social partners is continuing to play as if nothing is happening? The U2P refuses," its president Michel Picon asserts in the press release.

According to him, the small business owners that the U2P represents, "who work well beyond the average French person, (...) can no longer listen to the sirens calling for shorter working hours."

"Not dead"

This departure from the smallest employers' organization comes after Prime Minister François Bayrou voted "no" on Sunday to a question about returning the retirement age to 62, given the international context.

These statements have sparked outrage on the left and among unions, as negotiations between social partners are expected to last another two months.

Economy Minister Eric Lombard attempted to soften the blow by asserting that it was the "conclave" that "must decide."

On Monday, Public Accounts Minister Amélie de Montchalin deemed a return to 62 years "unrealistic" in the context of the upcoming military effort and the "imperative" of financially balancing pensions.

On Tuesday morning, Socialist First Secretary Olivier Faure warned the government on BFMTV/RMC, threatening censorship if it did not honor its commitment to see the conclave "through to the end."

Labor Minister Astrid Panosyan-Bouvet, for her part, lamented U2P's departure on RTL. But the conclave "is not dead," she said, deeming it "important that these consultations be completed."

"The unions can look at (the question of a return to 62 years, editor's note) as long as the financial equation is there and there is also a compromise with the employers," Ms. Panosyan-Bouvet said.

The U2P believes that balancing the pension system "will require pushing back the legal retirement age beyond 64," except for difficult jobs.

The organization believes that "we will not be able to escape" an indexation of pensions lower than inflation, except for the most modest retirees.

Mr. Picon and the four vice-presidents of the U2P will hold a press conference at 11:00 a.m. at the organization's headquarters.

On the union side, the CFDT, CFTC, and CFE-CGC remain at the negotiating table for the time being. The CGT will question its governing bodies, which will meet on Monday and Tuesday, on the appropriate approach. However, its number one, Sophie Binet, is not expected to make a statement until Wednesday evening or Thursday morning.

The CFDT, for its part, plans to ask the Prime Minister "if he confirms his comments" during a meeting already scheduled between the union and Mr. Bayrou for Tuesday at the end of the day.

Illustrative image of the article via Depositphotos.com.