French unions representing public sector workers are threatening strikes over pay and working conditions as they face dealing with millions of visitors during the Paris Olympics this summer.
The prospect of potentially embarrassing protest action disrupting the showpiece event when the eyes of the world will be on the city has prompted the government of President Emmanuel Macron to begin offering bonuses to police and other workers.
According to some estimates, 15.9 million people could visit Paris and the surrounding region from July to September, the period of the Olympics and Paralympics.
The games are likely to increase strain in Paris, which has already been stretched by heightened security threats and chronic staffing shortages at hospitals and on the transport network.
Leading the way in threatening strikes is the CGT union, whose general secretary Sophie Binet has said it will provide notice for the public-sector workers they represent to walk out during July and August, coinciding with the scheduled dates of the games.
Among the groups of workers it represents who could strike are hospital staff, customs officers and those in the cultural sector.
One expert The National spoke to said the government has been slow to clarify whether workers will be paid more for the longer hours needed to keep Paris running during the games.
Paul Smith, from Nottingham University, said President Macron will be hoping to appeal to workers not to “ruin the party” and that the fractured nature of France’s unions will blunt any action.
“But the people who are there to make the magic happen are not feeling very magical at the moment,” he said.
Ms Binet called on the government to inject more funding into hospitals, which she claimed are in a “catastrophic” state if France wants to be able to deal with the influx of visitors.
“We are very, very, very worried about how it will be this summer,” she said.
“It won’t be possible to blackmail staff once again by asking them to work more overtime and call into question their paid leave. They are exhausted and can’t take it any more. We need a recruitment plan.”
The union leader said the government has yet to explain “how are we going to accommodate all the workers who will have to come for the Olympics?”.
“How are we going to take care of their children when they’re the ones who have to work? What kind of bonuses will they get?”
Ms Binet said “it’s getting very tiresome” calling on the government to ensure pay and conditions are sorted in time.
“We want the government to take immediate action to ensure the success of the Games,” she said.
The union is currently involved in a pay dispute with the Paris transport operator RATP, which is scheduled to continue until September.
François-Xavier Arouls, one of the leaders of the Solidaires union at RATP, said if “workers are no longer willing to make sacrifices for what the government says is the greater good”, but added that if properly paid “we will be there and help make the country proud during the games”.
Meanwhile the Force Ouvrière union, France’s third largest, said it was also looking at potential strike action during the period covering the games.
But general secretary of the CFDT union, Marylise Léon, said is “no desire to spoil this festive moment of the Olympic Games”.
In response, the government has agreed police officers posted during the Olympics will receive bonuses of up to €1,900 ($2,050). Other workers have also been offered up to €350 in subsidies for childcare as well as 1,000 reserved places for their children to go to camp.
Dr Smith said that “outwardly it would be an embarrassment” to President Macron’s government if there were to be strikes during the Olympics.
“The joke is of course that the French will excel at their national sport which is going on strike, and they will get a gold medal for it,” he said.
“But the trade unions need to be careful because the government can always flip it around and say ‘we’ve invited the world to our games and you’re the ones screwing up the party’.”
Dr Smith explained “there is a feeling in Paris and not just in people in unions that the whole Olympics business has been poorly organised”.
“People working in the private sector are unsure what the situation is about holidays is and what the compensation will be. There has been a lack of clarity from the government and these things could have been sorted at out before. It’s not as if they didn’t know the games were coming.”
“You listen to French ministers on the radio talking on a marco level about their plans but for many individuals, it’s not clear to them what’s happening.”
Paris prepares for Olympic Games - in pictures
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
RESULTS
Welterweight
Tohir Zhuraev (TJK) beat Mostafa Radi (PAL)
(Unanimous points decision)
Catchweight 75kg
Anas Siraj Mounir (MAR) beat Leandro Martins (BRA)
(Second round knockout)
Flyweight (female)
Manon Fiorot (FRA) beat Corinne Laframboise (CAN)
(RSC in third round)
Featherweight
Bogdan Kirilenko (UZB) beat Ahmed Al Darmaki
(Disqualification)
Lightweight
Izzedine Al Derabani (JOR) beat Rey Nacionales (PHI)
(Unanimous points)
Featherweight
Yousef Al Housani (UAE) beat Mohamed Fargan (IND)
(TKO first round)
Catchweight 69kg
Jung Han-gook (KOR) beat Max Lima (BRA)
(First round submission by foot-lock)
Catchweight 71kg
Usman Nurmogamedov (RUS) beat Jerry Kvarnstrom (FIN)
(TKO round 1).
Featherweight title (5 rounds)
Lee Do-gyeom (KOR) v Alexandru Chitoran (ROU)
(TKO round 1).
Lightweight title (5 rounds)
Bruno Machado (BRA) beat Mike Santiago (USA)
(RSC round 2).
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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