Bayrou persists, the CGT towards the exit: the pension "conclave" falters

After an initial statement on Sunday that sparked controversy, the Prime Minister was called upon to clarify his position before the National Assembly. Repealing the flagship measure of the 2023 reform, which raised the legal retirement age to 64, "I say as a citizen, as an observer, that it is not possible," he reaffirmed before meeting with the CFDT in the evening.

He cited the recent report from the Court of Auditors, according to which the pension system deficit will reach 6,6 billion euros in 2025 and 30 billion by 2045. The impossibility of a return to 62 years of age, "I am convinced that the social partners (...) will come to a conclusion of this order," he affirmed.

The pension talks, which began at the end of February between social partners and were scheduled to last three months, are more faltering than ever. Following the departure of the Workers' Force on February 27, which had denounced a "masquerade," the CGT (General Confederation of Trade Unions) decided on Tuesday to propose to its governing bodies that they "withdraw from the talks."

Building "mobilization"

In an internal letter, the Confederal Executive Committee "considers that the nature of pension consultations has changed" since the Prime Minister's statements and proposes to its "parliament" bodies to "withdraw from them and build the mobilisation offensively." The decision is expected Wednesday evening.

The CGT believes that François Bayrou's "hardening of positions," "at the behest of the Medef (Medef), is unacceptable and blocks the framework for consultations."

The next consultation meeting between social partners will be held on Thursday at 14:00 p.m. The CFDT, CFTC, and CFE-CGC will be at the negotiating table.

"The CFDT will not abandon the discussions because the reform would be fully implemented, without any changes. However, we want answers on the hardship and the women's issue," the union's second-in-command, Yvan Ricordeau, told AFP after the meeting at Matignon.

Pointing to a "disagreement on age" which, for the CFDT, "remains in the discussions," he noted that "the rules of the game have changed since the Prime Minister's intervention, which interfered." The CFDT expects the next meeting, on Thursday, to "reformat the roadmap" of the social partners: "Depending on that, we'll see how we move forward," according to the union representative.

The heads of the power stations are due to meet on Wednesday at 17:30 p.m.

"Fool's Game"

On the employers' side, the U2P (craftsmen, traders and liberal professions) also decided to walk out on Tuesday, seeing these negotiations as a "fool's game."

"This conclave is not balanced," the unions and the political opposition "will not negotiate anything without a return of the retirement age to 62," which is financially "impossible," Michel Picon, its president, explained to the press.

On Sunday, Mr. Bayrou took a "courageous" position by rejecting this "step backward," he added. But the "chorus of fear" that followed, and the media "statements" from both unions and opposition parties, "made us say 'we are in a trap,'" he said.

Because any potential agreement between unions and employers must be submitted to Parliament. And the U2P has now "become certain that the political balance" will result in a return to the 62-year age limit and "an increase in corporate costs."

Asked by AFP, the Medef, the main employers' organization, said it "shared the diagnosis" of the U2P on the current context, which "forces us to re-examine the merits of this conclave," without announcing its departure.

The CPME, for its part, "remains," saying it is "still as willing to reach an agreement."

The Medef confirms that it wants to "give the discussion a chance"

Medef (French employers' association) President Patrick Martin confirmed on Wednesday that he wanted to "give the pension discussion a chance" and continue to participate, provided everyone stops "playing hide-and-seek" and "shows their cards."

Mr. Martin was interviewed on Radio Classique the day after the smallest employers' organization, the U2P, announced that it was leaving the negotiations, while, on the union side, the CGT appears to be preparing to do the same.

The employers' side would thus remain around the table, the Medef and the CPME, and the unions' side would remain the CFDT, the CFE-CGC and the CFTC, with the FO having already slammed the door.

"We felt it was necessary to 'give the product a chance' even if the prospects of success are slim," said the president of the leading employers' organization, which is demanding a return to financial balance for pensions.

"At this stage, the unions are not revealing themselves and want to put other issues first," but "we cannot exempt ourselves from this debate: all social partners, and especially politicians, must take into account this situation of public finances, which is becoming critical," he stressed.

Mr. Martin "does not despair that at some point everyone will show their hand." "But we won't hold eleven sessions like this playing hide-and-seek," he noted.

He again expressed interest in broadening the discussion to include the financing of social protection as a whole. "I think that would relax the discussion," he said.

Asked about the customs duties that the United States wants to massively increase, Mr. Martin indicated that the Medef "does not despair that the (negative, editor's note) impact on the American economy will calm the ardor of the Trump administration."

He notes that already "investments that were directed towards the United States are being held back, because investors are thinking that America is perhaps taking the wrong path, in terms of inflation, growth, and stock prices." "Europe itself must be very determined to stand up to these threats," he added.

Mr. Martin hoped that the State would "give visibility" to businesses, particularly small and medium-sized ones, which will be affected by the rearmament effort.

Although he was against borrowing to finance this effort, he considered it "desirable to voluntarily channel a portion of savings" into this direction.