Pension Reform Impact on SNCF Workforce Costs
The cost associated with the recent pension reform and delayed retirement age to 64 for SNCF employees has been revealed in the company’s half-year financial report. The total estimated cost is €758 million.
According to the report, SNCF has already received €277 million under a previous agreement, reducing the total cost to €481 million. The company’s CEO estimated an annual cost of €35 million on this issue.
Early Retirement Options
The agreement allows SNCF workers to retire eighteen months earlier with 75% of their salary (50% after tax) if they qualify. Drivers, transformers, and workers in maintenance workshops can retire twelve to fifteen months earlier under the same conditions. Workers with fifteen years of seniority can retire nine months earlier. They can also choose part-time work, receiving 10% more than their full-time salary with the company covering all contributions.
Limited Employee Uptake
Despite the options available, only 5% of employees have opted for part-time work, while 10-40% have chosen to work on more difficult tasks. Notably, 91,000 employees work in emergency services, with 70% of those working on train maintenance during the night.