French workers strike over retirement age hike

Planes, trains and automobiles stood still and schools were shuttered Thursday as French workers went on strike for a day over the country's plans to raise its retirement age to 62.

Raucous crowds protested as teachers, utility workers, dock workers and hospital staff, took part in nearly 200 marches in the protest against President Nicolas Sarkozy's planned reform of the cash-strapped pension system. The plan is part of an effort across Europe to shave burgeoning public debts.

Commuters were stranded in France and neighbouring countries as walkouts disrupted train service from Italy and Switzerland, and some flights were cancelled or delayed. Meanwhile motorists crammed into subways and buses as the protests clogged Paris streets.

France has one of Europe's lowest retirement ages, allowing workers to retire at age 60 in most sectors. The government says the reform to the money-losing pension system is an "obligation," given France's burgeoning deficit and its aging population.

But unions say money for the pension system should come from higher taxes or charges on those who are still working.

The French pension reform pales in comparison with changes elsewhere in Europe. Germany plans to gradually raise its retirement age to 67 from 65, starting in 2012.

French Labour Minister Eric Woerth says the proposed reform will save nearly $30.6 billion in 2018 and should bring the pension system back into the black that year.

The reform is set to be introduced gradually and will also stretch out the total number of years people have to work to gain full pension payments. The cabinet is scheduled to debate the plan in July, and the proposal is expected to go before parliament next autumn.