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Explainer: Why the French are striking

By Thair Shaikh, CNN
A protester clashes with police in Ajaccio on the Mediterranean island of Corsica, on October 22, 2010.
A protester clashes with police in Ajaccio on the Mediterranean island of Corsica, on October 22, 2010.
STORY HIGHLIGHTS
  • French Senate passes its version of the controversial bill, including amendments
  • Strikers are objecting to French government plan to raise retirement age from 60 to 62
  • Unions and political opponents say it penalizes workers
  • According to the French government the measure will save $23.3 billion by 2018
RELATED TOPICS
  • France
  • Paris
  • Nicolas Sarkozy

(CNN) -- Millions of public and private sector workers, students and other French citizens have taken to the streets in cities across France.

The demonstrations and wider civil unrest, including the blockade of fuel terminals, has crippled transport links and severely affected public services and businesses across varying sectors, including banking and the media.

So, why are they striking?
They are objecting to the French government's plan to raise the retirement age from 60 to 62 and full pension payments from 65 to 67. The changes will be made in 2018 and will affect both public and private-sector workers.

Why are the extra two years such a big deal?
Unions and political opponents say it penalizes workers, arguing the move is unnecessary and punitive. Some students have told CNN in Paris they are worried they won't be able to get jobs if the current generation hangs onto their jobs for an extra two years. Some also complain that it will disproportionately affect the poor.

Who is striking?
Workers from the public and private sectors are on strike, including those in transportation, education, justice, hospitals, media and banking. Students are also demonstrating. More than a million people have turned out nationwide to protest. The unions have said they will keep calling for strikes until French President Nicolas Sarkozy withdraws the pension law or open negotiations.

What effect have the strikers had?
Blockades of refineries and fuel depots have led to widespread fuel shortages. Workers had been on strike at all 12 of the nation's refineries, although on Monday workers at three refineries voted to end their strike, Agence-France Presse reported.

About 25 percent of the country's gas stations are suffering from a shortage of fuel.

How much are the strikes costing France?
Between 200 to 400 million euros ($280 to $560 million) per day, according to the French Finance Minister Christine Lagarde.

The costs include fuel shortages, lost foreign investment, and damage to the country's reputation, she says

Why is the French government so determined to make the change?
French President Nicolas Sarkozy says the change is needed because rising life expectancy increases the financial burden on the pension system. The move is also part of a wider range of austerity measures designed to wipe out the country's growing fiscal deficit.

Sarkozy is accusing trade union leaders of undermining France's fragile economic recovery, says AFP.

According to the French government, the measure will allow the country to save 19 billion euros ($23.3 billion) by 2018.

The government's announced goal is to cut the deficit from 8 percent to 6 percent of gross domestic product by next year.

How did the government vote for the reforms?
The lower house of parliament has already passed the pension reforms by a vote of 329 to 233.

Late Friday, the French Senate passed its version of the bill, including a number of amendments.

Seven senators and seven members of the National Assembly are meeting early this week to reconcile the differences between the two bills. Each house will then vote for or against the bill proposed by the conference committee.

A final vote on the reform is expected early Tuesday or Wednesday in both the Senate and National Assembly, according to a spokesman in the Senate.

How do businesses view the strikes?
Maurice Levy, head of Publicis, one of the top four advertising groups in the world, says the marches do not surprise him as France has a long tradition of strikes and "revolution."

"We can't reform our system that easily... the dialogue of the unions are very tough, very difficult and as you can see in recent times they have been joined by other people," Levy told CNN.

He also believes the strikes will end within the next two weeks. "We will see this fury extinguishing itself within the next 10 days or two weeks when we have vacations."