Macron government labour reform plans for France

Series Title
Series Details 31.08.17
Publication Date 31/08/2017
Content Type

Background and further information:

France's Prime Minister Edouard Philippe and Minister of Labour Muriel Pénicaud launched a social model reform on the 6 June 2017. The reform programme linked together labour law reform with an investment plan for skills and vocational training, apprenticeship reform, vocational training reform, the overhaul of unemployment insurance, the increase in purchasing power and pension reform.

This reform proposals comprised a set of key elements:

+ Rules in small companies;
+ Mutually agreed work contract termination;
+ Dismissal red-tape;
+ Scope of assessment of economic grounds for dismissals;
+ Workplace rules;
+ Dismissal awards;
+ Shrink number of consultative bodies;
+ Increase of severance pay.

The aim of the reform proposals were to make the labour market in France more flexible. For example, collective layoffs would be easier when both employers and workers' representatives agreed on terms. Also, the length and conditions of short-term contracts would be determined at professional sector level rather than by law. It was generally seen as a shift in the power balance from workers to employers.

The government was set to adopt the decrees without a vote by the Parliament after they have passed scrutiny by the Council of State. While the documents were widely discussed with trade unions and business federations in the previous months, the Parliament was overall bypassed. The hope was to get the reforms adopted by the end of September 2017.

The first set of reactions was mixed, with different polls showing support and anger towards these plans.

The proposals followed on from the so-called labour market reforms adopted under the Hollande Presidency in 2016 known as the El Khomri Law.French President Emmanuel Macron unveiled on 31 August 2017 a labour reform plan, seen as a political test to his leadership and project for the country.

On that day the French Prime Minister, Édouard Philippe, and the Minster of Labour, Muriel Pénicaud, presented the contents of the 5 separate decrees (comprising thirty six measures) that would reform the French Labour Code.

Trade union and left wing protests at the proposals were held in a series of demonstrations during September 2017.

Neverthess, President Macron signed the labour code reform proposals into law on the 22 September 2017 after just four months in power. He said that the 'The reform ... constitutes an unprecedented transformation of our social model (and) the economic functioning of our country'... .

Source Link Link to Main Source https://uk.reuters.com/article/idUKKCN1BB1N8
Related Links
The Local.fr, 13.09.17: 'We won't back down' vows French government after tens of thousands protest labour reforms https://www.thelocal.fr/20170913/we-wont-back-down-vows-french-government-after-tens-of-thousands-protest-against-labour-reforms
ESO: Background information: Can France liberalise pensions and labour under Macron? / Third-way à la française: What do Macron’s reforms involve and how likely are they to succeed? http://www.europeansources.info/record/can-france-liberalise-pensions-and-labour-under-macron-third-way-a-la-francaise-what-do-macrons-reforms-involve-and-how-likely-are-they-to-succeed/
Reuters, 31.08.17: Main French union disappointed with Macron reforms, but not joining protest https://www.reuters.com/article/us-france-reform-cfdt/main-french-union-disappointed-with-macron-reforms-but-not-joining-protest-idUSKCN1BB1A0
EurActiv, 01.09.17: Brussels welcomes French labour reforms as unions and left camp complain http://www.euractiv.com/section/economy-jobs/news/brussels-welcomes-french-labor-reforms-as-unions-and-left-camp-complain/
EUObserver, 01.09.17: Macron unveils high stakes labour reform https://euobserver.com/beyond-brussels/138855
RFI, 01.09.17: Macron faces fight over with labour reform http://en.rfi.fr/france/20170831-macron-faces-fight-over-labour-reform
The New York Times, 31.08.17: France Unveils Contentious Labor Overhaul in Big Test for Macron https://www.nytimes.com/2017/08/31/world/europe/macron-france-labor-law.html
Deutsche Welle, 31.08.17: Emmanuel Macron's labor market reform – uncontroversial and insufficient http://p.dw.com/p/2jAn5
The Guardian, 31.08.17: Macron government launches overhaul of France's labour laws https://www.theguardian.com/world/2017/aug/31/france-reveals-measures-to-overhaul-working-life
France24, 31.08.17: Macron’s government unveils controversial labour reforms http://www.france24.com/en/20170831-france-emmanuel-macron-government-unveil-controversial-labour-reforms-trade-unions
Politico, 31.08.17: 5 key points from Macron’s big labor reform http://www.politico.eu/article/macron-labor-reform-5-key-points/
The Local.fr, 31.08.17: French PM says labour reforms are 'ambitious, balanced, fair' https://www.thelocal.fr/20170831/french-pm-says-labour-reforms-are-ambitious-balanced-fair
EurActiv, 31.08.17: Europe watches closely as France unveils ‘mother of all reforms’ https://www.euractiv.com/section/economy-jobs/news/europe-watches-closely-as-france-unveils-mother-of-all-reforms/
Politico, 31.08.17: Emmanuel Macron faces down French sacred cow http://www.politico.eu/article/emmanuel-macron-faces-down-french-sacred-cow/
BBC News, 31.08.17: Macron government launches overhaul of France's labour laws http://www.bbc.co.uk/news/world-europe-41094790
France24, 01.09.17: A round-up of France's controversial labour law reforms http://www.france24.com/en/20170901-round-controversial-labour-law-reform-france
The Conversation, 08.09.17: Macron’s woes: French unions are gearing up for major strikes https://theconversation.com/macrons-woes-french-unions-are-gearing-up-for-major-strikes-81719
Deutsche Welle, 12.09.17: France: Workers protest Emmanuel Macron's labor reforms http://p.dw.com/p/2jkzW
BBC News, 12.09.17: French protests target Macron labour reforms http://www.bbc.co.uk/news/world-europe-41238162
France24, 12.09.17: France: Strikes and protests against Macron's labour reforms kick off https://www.thelocal.fr/20170912/strikes-and-street-protests-against-macrons-labour-reforms-hit-france
Euro|Topics: Debates, September 2017: Macron's reform: a step forwards or backwards / Will mass protests stop Macron's reforms? https://www.eurotopics.net/en/185307/will-mass-protests-stop-macron-s-reforms
Blog: LSE EuroppBlog, 06.09.17: Macron gambles on reducing unemployment through greater flexibility for employers http://blogs.lse.ac.uk/europpblog/2017/09/06/macron-labour-law-el-khomri/
The Conversation, 07.09.17: What Macron has in store for France’s generous unemployment support system https://theconversation.com/what-macron-has-in-store-for-frances-generous-unemployment-support-system-82009
CAPX, 27.09.17: Why Macron won’t get France working https://capx.co/why-macron-wont-get-france-working/
France: Ministry of Labour: The French Social Model Overhaul, September 2017 https://uk.ambafrance.org/The-French-social-model-overhaul
The Local.fr, 22.09.17: Defiant Macron signs his contested labour reforms into law https://www.thelocal.fr/20170922/macron-to-sign-his-signature-labour-reforms
France24, 22.09.17: Macron signs sweeping labour reforms into law http://www.france24.com/en/20170922-macron-signs-sweeping-labour-reforms-law
Deutsche Welle, 23.09.17: French leftists and unions protest Macron's reforms http://p.dw.com/p/2kZQR
Politico, 09.10.17: Hard-line French union chief calls mass rally against Macron reforms http://www.politico.eu/article/philippe-martinez-french-cgt-union-chief-calls-mass-rally-against-emmanuel-macron-reforms/

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