France hit by nationwide strikes as unions fight Macron's pension reform

5/5 © Reuters. SNCF Express Regional (TER) trains are seen at the Saint-Lazare train station in Paris on the eve of a nationwide day of strike and protests in key sectors like energy, public transport, air travel and schools against the pension reform, France, January 1 2/5

By Antony Paone and Yiming Woo

PARIS (Reuters) -French train drivers, teachers and refinery workers were among those who walked off their jobs on Thursday in a nationwide day of strikes against government plans to raise the retirement age by two years to 64.

The strikes, and protests expected across the country, are a major test for President Emmanuel Macron, who says his pension reform plan, which opinion polls show is hugely unpopular, is vital to ensure the system does not go bust.

The challenge for unions is to transform opposition to the reform - and anger over a cost-of-living crisis - into a mass social protest which would eventually force the government to change tack.

"We need a lot of people to join the protests," Laurent Berger, head of France's largest union, CFDT, told BFM TV. "People are against this reform ... we need to show it (in the streets)."

He and other union leaders, expected to announce more strikes and protests in the evening, said Thursday was just the beginning.

"There's nothing good in this reform," said Rozenn Cros, in the southern French city of Cannes, as she and other teachers prepared to strike, with banners including "No to 64".

For Macron, at stake are his reformist credentials, both at home and with his European Union peers, as well as keeping public spending in check.

Pushing back the retirement age by two years and extending the pay-in period would bring an additional 17.7 billion euros ($19.1 billion) in annual pension contributions, allowing the system to break even by 2027, according to Labour Ministry estimates.

"This reform is necessary and fair," Labour Minister Olivier Dussopt told LCI TV.

PUBLIC TRANSPORT WOES

Public transport was severely disrupted. Only between one-in-three and one-in-five high-speed TGV lines were operating, with barely any local or regional trains running, the SNCF rail operator said.

In Paris, some metro stations were closed and traffic was seriously disrupted, with few trains running.

In the busy Gare du Nord station, people rushed to catch the few trains still operating while employees in yellow vests were assisting frazzled commuters.

Zoheir Djema, 42, who arrived at the station from nearby Chantilly, said he would head back home after he found out there would be no return trains in the afternoon.

Restaurant worker Beverly Gahinet, who missed work because her train was cancelled, said she agreed with the strike even if she was not taking part.

But not all were so understanding.

"I don't understand, it's always the same (people) who are on strike ... and we have to endure it," said real estate worker Virginie Pinto, as she struggled to find a metro to go to work.

A 2007 ban on wildcat walkouts and restrictions on strikes to guarantee minimum public services have limited unions' ability to wear down governments' reform ambitions.

The fact that working from home is much more common now since the pandemic could also have an impact.

TAX THE RICH?

But with public sector workers often at the forefront of strikes, some seven out of 10 primary school teachers have said they will strike, their main union said. In Paris, students blockaded at least one high school in support of the strike action.

EDF (EPA:EDF) and grid operator RTE data showed electricity production was down by roughly 12% of total power supply, prompting France to raise its imports.

Shipments were blocked at TotalEnergies' refineries in France, union and company officials said. TotalEnergies chief executive Patrick Pouyanne said on Wednesday that one day of strikes would not disrupt refinery operations, but this could change if protests continued.

The impact on air traffic was largely limited to a reduction of about 20% of flights in Orly, Paris' second-biggest airport. Air France said it was operating all its long-haul flights and 90% of its short and medium-haul flights.

Macron and several of his ministers meanwhile will be in Barcelona on Thursday for a meeting with Spanish officials.

The pension reform still needs to go through parliament, where Macron has lost his absolute majority but is hoping to get it passed with the support of conservatives.

Unions argue there are other ways to ensure the viability of the pension system such as taxing the super-rich or increasing employers' contributions or those of well-off pensioners. ($1 = 0.9246 euros)