April 30th, 2008The French government wants businesses to absorb older people
The French government proposed radical measures for raising the number of older people in the country’s workforce, in an effort to tackle its fast ageing population. Firms could be slapped with stiff penalties if they fail to increase their number of staff in the age group of 55 to 64. The most controversial reform suggested is for employees to work till 41 - not 40 years - to qualify for a full state pension. Union leaders met Xavier Bertrand, the Labour Minister, but there are already calls being made for strikes on May 15.
France has one of the abysmally lowest rates of employment of workers in the age group of 55 to 64 in the European Union. However, the country also boasts one of the best rates of life expectancy, at 77.6 for men and 84.5 for women, which only compounds the problem. Although the government under President Nicolas Sarkozy has decided not to push for firms to have a quota of ageing workers, it does want businesses that have not signed an agreement by 2010 to face additional pension contributions. According to an estimate, around 400,000 people aged 57 or above are out of work. They are receiving unemployment benefit.
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