SHARE
COPY LINK

LABOUR MARKET

Macron’s government fires opening salvo in bid to reform labour market

French President Emmanuel Macron's cabinet on Wednesday approved his ambitious plans to relax the country's rigid labour laws, the main plank of his bid to bring down stubbornly high unemployment.

Macron's government fires opening salvo in bid to reform labour market
File photo for last year's labour law protests in Paris. Photo: AFP

Macron, a liberal who won the presidency on a promise to get France back to work, wants to move quickly to inject flexibility into the labour market while still enjoying a honeymoon with voters.

On Wednesday, Labour Minister Muriel Penicaud unveiled a bill allowing the government to change the labour code using executive orders, to avoid the reforms becoming bogged down in parliament.

France's labour laws “must help companies to conquer new markets and create new jobs as a result,” she told reporters, setting out the measures.

Parliament will get to vote on the use of the executive orders after the government concludes several rounds of talks with trade unions and employers' groups. The bill is currently expected to pass, given Macron's commanding parliamentary majority.

READ ALSO:

'France faces last chance to reform labour market, but must not become like UK and US'

The centrist leader launched the labour negotiations within days of taking office to try to head off the protests that dogged the previous Socialist government in which he served.

Then president Francois Hollande's attempt to reform the labour market sparked months of sometimes violent demonstrations and sporadic strikes in 2016, during which uncollected rubbish piled up on the streets of Paris.

The final bill was rammed through parliament without a vote, after being significantly watered down.

Macron's reforms — which he aims to finalise by the end of September — will go further.

Headed 'in right direction'

He wants to give bosses more power to negotiate conditions directly with workers, circumventing industry-wide deals.

He also wants to cap the severance pay awarded by labour courts in cases of unfair dismissal and fuse the myriad workers' committees within a company into one single body.

The hardline CGT union that led last year's labour protests has come out swinging against the proposals and called for countrywide strikes and protests on September 12.

But in a sign that Macron may face less resistance than his predecessors the Force Ouvriere union, which usually sides with the CGT, told Le Monde daily that the discussions were headed “in the right direction”.

The dossier will test Macron's ability to effect the kind of reforms demanded by his eurozone partners, particularly German Chancellor Angela Merkel.

From a projected 9.4 percent this year the government aims to cut the unemployment rate to 7 percent by 2022.

WAGES

This is how much Swedish salaries increased in 2018

New figures released by Sweden’s National Mediation Institute (Medlingsinstitutet) on Wednesday showed that salaries increased at a faster rate last year than they did the year before.

This is how much Swedish salaries increased in 2018
File photo: Fredrik Sandberg/TT
Across Sweden, salaries increased by an average 2.6 percent during the first eleven months of 2018, representing a modest increase over the 2.3 percent growth seen in 2017. 
 
Public sector wages grew by 3.0 percent in November 2018, while the private sector increase was a more modest 2.4 percent. 
 
“The boom in the Swedish economy and the strong demand for labour have not had significant impacts on the rate of wage increase in the economy as a whole,” Medlingsinstitutet economist Valter Hultén said in a press release
 
“At the same time, demand for labour is very high in the public sector and this can be a contributing factor to the wage increases being somewhat higher there than in the business sector,” he continued. 
 
Although Sweden’s unemployment rate recently reached its lowest figure in ten years, there are signs that the labour market is beginning to cool.
 
Earlier this week, two redundancy support organizations said that they expected to see a significant increase in people needing their services in 2019 and in what could be considered a bad omen, Sweden’s job agency warned on Wednesday that it will let eliminate upwards of a third of its workers nationwide in a move that is expected to significantly impact job-seekers. 
SHOW COMMENTS