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Tuesday, November 2, 2010

Chirac Backs Down on Employment Law


© Guardian News & Media 2008
The French government today bowed to weeks of intense pressure from students and unions and announced plans to replace a controversial employment law that has triggered widespread protests and strikes across the country.

The office of the president, Jacques Chirac, said a new plan focusing on youths from troubled backgrounds will replace the "first job contract", which would have made it easier for employers to fire any worker aged under 26.

The announcement was made following a meeting with the prime minister, Dominique de Villepin, and other senior members of the ruling UMP party. Mr de Villepin is expected to announce details of the new measures at a news conference shortly.

Last week, French unions and student leaders gave the government 10 days to scrap its youth employment law, or face renewed strikes and protests.

Roused by 3 million demonstrators on the streets, the leaders of 12 unions said in a joint statement that if the law was not revoked by April 17, the French parliament's Easter break, they would step up protests which have seen hundreds of universities and high schools blockaded for weeks. Asked what they would do if the deadline was not met, unions said that nothing was ruled out.

The government claimed its new "easy-hire, easy fire" contract would curb crippling youth unemployment, which rises to 50% in deprived suburbs. The law, pushed through parliament by Mr de Villepin without a debate last month, would spare businesses France's rigid employment laws by allowing them to take on workers under 26 in the knowledge they could let them go after two years.

Today's concessions are likely to be seen as a substantial blow to Mr de Villepin, whose presidential hopes have been dented by the crisis.



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