"Turkey cannot delay this reform further. The social security system is not sustainable. Women retired at 38 and men at 43 in the past because of irresponsible and populist politicians," Erdogan told in his party's parliamentary group meeting.

He identified criticisms directed at the draft law as "speculations," accusing the critics "acting insincerely and lying”. “Turkey cannot carry this burden any longer and an immediate intervention is an economic and a logical must."

Turkey's social security deficit exceeded 25 billion lira ($20 billion) in 2007, and officials warned it would reach nearly 30 billion lira this year if the reform is not passed.

The bill creates a new fund where future severance payments will be transferred and the money accumulating here will be used in private pension funds. Workers will be paid severance payments only in the case of death or retirement but not lay-offs. The reform says workers will be paid severance payments only in the case of death or retirement but not lay-offs, creating potential conflict with the labour groups.                           

UNIONS CALL WARNING STRIKE

In a bid to please trade unions, the reform bill raises unemployment payments by taking gross salary as the basis for the payments rather take-home salaries. It also reduces the number of working days registered for workers to be entitled to benefit from unemployment payments. But labor unions on Friday called on workers across the country to go on a two-hour warning strike on March 14 to protest against the bill that will rise the retirement age. 

"The right not to work will be exercised at workplaces on Friday, March 14 between 1000 and 1200 am (GMT 0800-1000) to warn (the government)", the head of Turkey's biggest labor group Turk-Is Chairman Mustafa Kumlu told reporters after a meeting with other union leaders. The unions might opt for other action if the parliament general assembly starts discussions on the bill with no changes in contents, he said.        

The labor unions and the opposition parties criticize the reform saying that it raises the threshold for workers to reach retirement to a very high level of 9,000 days. The government says the current retirement ages of 44 for women and 48 for men are not sustainable and the existing system encourages early retirement.