``x

for more detailed description, go to (us not reader)

http://www.travail.gouv.fr/etranges/english_v.html#5

link to Travail et Emploi

http://www.travail.gouv.fr/publications/liste_collections.asp#collection15

``xfrance``x``xTravail et Emploi``x1009830694,80768,``xQuarterly review dedicated to studies and research in the employment field``x ``x

http://www.travail.gouv.fr/etranges/english_v.html#4

``xfrance``x``xThe Battle Against Exclusion``x1009830758,62801,``x``x ``x``xfrance``x``xCraftsmen``x1009831524,18401,``x``x ``xhttp://www.minefi.gouv.fr/minefi/minefi_ang/entreprise/index.htm``xfrance``x``xIndirect Taxes``x1009831780,27433,``x``x ``x

http://www.minefi.gouv.fr/minefi/minefi_ang/actualites/index.htm

``xfrance``x``xPublic Sector Salaries 2000``x1009831907,84869,``x``x ``x

The "Aubry" laws of June 1998 and January 2000 reduced the statutory working week from 39 to 35 hours as of 1 January 2000 for companies with more than 20 employees and from 1 January 2002 for smaller firms. The laws have been implemented mainly through collective bargaining.

In June 2001, the National Economic Planning Agency published a report entitled Reduction of Working Time: Lessons from its Analysis. The purpose of the report was to assess the effects of the working time legislation at the half-way stage.A committee of representatives of the state, trade unions, employers' organisations and other experts prepared the report.

Impact of Reduced Working Time

The report found that the law has had a measurable impact on actual working time: 62 per cent of full-time employees in companies with more than 20 employees now work a 35-hour week, compared to 1.6 per cent in 1996.

New Job Creation: it is estimated that the collective agreements on reduction of working time signed up to December 2000 have generated a new total of 265,000 new jobs.

The total new job creation, including companies with fewer than 20 employees, is expected to be around half a million new jobs.

The reduction of working time has been implemented without any reduction in monthly pay or negative impacts on companies' competitiveness through a combination of productivity gains, agreements on pay restraint and state funding.

Survey results show that employees are experiencing an improved quality of life as a result of working shorter hours; this is balanced by reports of requirements to perform better in the workplace.

As the legislation is implemented mainly through collective agreements, the volume of agreements has surged with more than 30,000 company-level agreements concluded in 1999 and 2000.

Recommendations
The report makes three recommendations:

Apply the law to smaller companies (fewer than 20 employees) on the date planned to help combat unemployment.

Focus on job quality and the balance between work and family life.

Reduce red-tape by overhauling the extremely complex legislation and its implementation so that it is confined to essentials. There should be greater freedom to conclude collective agreements, provided these represent the majority of employees.

Three Immediate Problems
The report identified three urgent problems:

The minimum wage: the national minimum wage (SMIC) is set on the basis of an hourly wage. To avoid a pay cut, the law provides for a monthly wage guarantee calculated on the basis of the rate of SMIC applicable at the time of changeover to the 35-hour week. As the SMIC is adjusted annually, wage disparities increase, depending on the date the reduction in working time takes place in a company.

Calculation of Working Time: the application of the working time law has resulted in many disputes about the definition of working time e.g. does time spent in training, travelling, making personal telephone calls and teleworking count as working time? This needs to be clarified by the courts and collective agreements.

Financing state aid: the reduction of working time and the resultant positive impact on unemployment levels has had positive effects on state finances, i.e. lower unemployment benefit payments, increased receipts of social insurance contributions and income taxes. The state has withdrawn funds from the unemployment and social insurance funds to finance the reduction in working time, although it is largely self-financing for the reasons outline above. This has lead to conflict with the social partners who share in the management of these funds.

``xfrance``xba``x35 Hour Working Week at the Half-Way Stage, May 2001``x1010148385,7661,Employment_Law``xAlthough fiercely opposed by some, including France's largest employers' organisation, the 'Aubry' laws on the 35-hour week have created a measurable reduction in working time and new jobs without damaging competitiveness.``x35hourweek ``x

The 5 main provisions of the law

1. The law confirms a new, legal workweek limit of 35 hours

Effective 1 January 2000 for companies with more than 20 employees and 1 January 2002 for all others, the new legal workweek is set at 35 hours. In addition, the law specifies an annual work hour total that is equivalent to an average of 35 hours, based on the number of weeks worked. Theoretically, the total should not exceed 1,600 hours. This annual figure applies when work hours are calculated on a yearly basis.

2. The law spells out the rules governing overtime

Weekly overtime begins accruing with the 36th hour of work. For annualised employment contracts entered into after 1 February 2000 overtime begins with the 1,600th hour. The law specifies the impact of overtime on both companies and employees.

3. The law sets forth new arrangements for organizing work hours

The above arrangements, which can be worked out through collective bargaining and which meet the needs of companies while strengthening guarantees for employees, include the following: annualization of work hours ; the reduction of the number of days worked per week; various types of part-time options ; intermittent work; work-hour savings accounts ; specific arrangements for managers, based on how independently they function ; and provisions for skills-enhancement training, to be dispensed in part during the hours freed up by the 35-hour workweek.

4. The law introduces new tax breaks on employer contributions

The new tax breaks on employer contributions not only attempt to balance the burden of financing the transition to a 35-hour workweek ; they also aim to lower the cost of employing low- and medium-paid personnel, in order to stimulate job growth. Companies can also negotiate these tax breaks.

5. The law creates a wage guarantee system for minimum-wage employees

The guarantee aims to prevent any decline in the compensation of minimum-wage employees whose work hours are reduced and to raise their purchasing power in the long run.

Link to details of the negotiated agreements on the reduction of working time as at May 2001

``xfrance``xb``x35 Hour Week - Main Provisions of the Law``x1010149501,33787,Employment_Law``xSummary from the French Ministry of Labour on the key provisions of the law on 35 hour week``x35hourweeklaw ``x

A string of redundancies in 2001, mostly notably at Danone and Marks and Spencers led to nationwide demonstrations and ultimately a more restrictive definition of redundancy in France. At least that's the proposal, though neither employers nor unions support the plan.

In June 2001, France's national assembly gave a second reading to the government's "social modernisation" bill, a wide-ranging bill which includes provisions on redundancy. Employers' groups feel the bill goes too far, unions want even more far-reaching measures.

The social modernisation bill includes a series of more restrictive measures for companies planning redundancies:

A more restrictive definition of redundancy (licenciement economique): now the only acceptable grounds will be "serious economic difficulties which the company has been unable to resolve by any other means", technical advances "threatening the company's survival" or "reorganisation requirements which are vital to keep the company in business". Redundancy on any other grounds will not be recognised. The Labour Code currently states that acceptable grounds for redundancy "include" these grounds; the word "include" will not be removed from the Code.

The right of works councils to oppose redundancies. Works councils will be able to represent counter proposals when a company announces redundancies. They will also have the right to oppose restructuring and staff-reduction plans, together with the terms and conditions of their implementation. The latter "right to oppose" will apply only to the management proposals and not to the redundancies themselves. This will be dealt with by a mediator. Finally, works councils may ask a judge in chambers (juge des referes) for a ruling on whether appropriate procedures have been followed in the tabling of counter-proposals.

Creation of the position of Mediator. A mediator can be brought in by either party where it is proposed to make redundant at least 100 people as part of a down-sizing operation. Mediators will be appointed by district courts and will have a maximum of one month to bridge the gap between the parties and make a recommendation. The redundancy process is frozen during this time. If the recommendation is rejected by the parties, the judge will make the final ruling.

Plan to safeguard employment. Companies with more than a total of 100 employees which are planning redundancies will be required to present a new "plan to safeguard employment" (plan de sauvegarde d'emploi), covering redeployment possibilities and the local and social impact of the redundancies. Companies with more than 50 employees will be required to make either a financial or in-kind contribution to the number of workers made redundant.

Employer Reaction
Employers' groups have condemned the proposed legislation out of hand, saying it would hamper company development and drive companies abroad. All of the employers' group are critical of the lack of consultation about the proposed legislation.

Union Reaction
Unions have not reacted positively to the proposed legislation, saying it adds nothing new to the rights of employees in a redundancy situation and does not include substantive measures to provide genuine job security.

``xfrance``xca``x"Social Modernisation" - Redundancy Legislation to be toughened``x1010154736,37736,Employment_Law``xA string of redundancies in 2001, mostly notably at Danone and Marks and Spencers led to nationwide demonstrations and ultimately a more restrictive definition of redundancy in France.``xsocialmodernisation ``x

From 1 July 2001, the French government increased the hourly rate of the SMIC national minimum wage by 4.05 per cent. The new hourly rate is €6.67, which equates to a 1.8 per cent increase in purchasing power. An increase of 3.75 per cent was legislated for; the optional extra given by the government is known as a 'coup de ponce', i.e. a boost.

The range of rates payable to employees paid the SMIC has been complicated by the introduction of the 35-hour week. The rise does not yet apply to almost three quarters of all current SMIC earners as their employers have yet to sign agreements on the switch over to the 35-hour week.

Workers whose employers have already switched to the 35-hour week are part of a different system intended to protect their pay falling proportionally with the 4-hour reduction in the working week. The earnings of this employee group have been maintained through a system of "guaranteed monthly wage"; this means that instead of their pay dropping from 39 x SMIC to 35 x SMIC, they continue to earn the same amount as they did when they worked 39 hours. Overtime worked is paid in addition.

Changes in the pay of the latter group is no longer linked to increases in the basic rate of SMIC. Instead, it is linked to the "guaranteed monthly wage" which actually increases at a slower rate than the index used to calculate the hourly rate of SMIC. This has created a two-tier system for workers on the minimum wage. Those covered by a "guaranteed monthly wage" are further disadvantaged as the 35-hour week law makes no provision for the occasional 'boost"; the hourly rate of SMIC can receive such a boost, as seen in 2001.

The "two-tier SMIC system" has in fact more than two layers. Because the pay of minimum wage workers is maintained at the rate of SMIC if force at the time the agreement to switch to the 35-hour week was signed, early adopters are at a disadvantage as subsequent increase in their "guaranteed monthly wage" are lower than the corresponding increase in the hourly SMIC rate.

So from July 20001, SMIC earners who switched before 1 July 1999 earned €1,081.21 per month; those who moved to the 35-hour week between 1 July 2000 and 30 June 2001 earned €1,134.50. Employees still working a 39-hour week can earn €1,126.50 per monthly.

The government plans to close the gap in what is clearly an unfair system by 2005, however details of the transition have not yet been announced.

``xfrance``x``xNational Minimum Wage - SMIC``x1010258948,49454,Money_Matters``xMove to 35 hour week has resulted in inequities in the rate of SMIC payable.``xSMIC ``x

The French parliament comprises two houses - the National Assembly (490 deputes, elected for a five-year term, directly elected) and the Senate (306 senators, elected for a nine year term).

Laws may be proposed by the Government (the draft is known as a projet de loi) or the Opposition (draft called proposition de loi). The proposed legislation is presented first to either the National Assembly or the Senate, although the annual draft Budget is always presented first to the National Assembly).

If required by the Government or either of the two houses, draft legislation is send to review to a specially convened committee. Draft legislation on employment and social affairs may be sent to the Social and Economic Council (conseil �conomique et social), which has 220 members; one third of these are appointed by the Government, the social partners nominate the remainder.

If a draft law fails to be passed by both houses after two readings, the Prime Minister may set up a joint conciliation committee (commission mixte paritaire) of seven d�put�s and seven senators with the aim of devising a compromise text.

If this fails, the Government may call on the National Assembly for a final vote on the existing text. Once approved, the final text is published in the Official Journal (journal officiel).

``xfrance``x``xLegislative Process``x1011186258,29762,Employment_Law``xOutline summary of how the legisalative process works in France``xlegprofrance ``x

Salary Savings
Loi 2001 - 152 du 19 f�vrier 2001 sur l'�pargne salariale

In force from January 2002. Introduces two new models for company-based savings funds: the PPESV 'voluntary salary savings partnership scheme' and the PEI 'inter company savings scheme'.

Gender Equality
Loi 2001397 du 9 mai 2001 relative � l'�galit� professionelle entre les femmes and les hommes

In force from May 2001, this law lifts the ban on women's nightworking. It also specifies that gender equality measures must be included as an item for compulsory negotiations at both branch and company level.

New Economic Regulations
Loi 2001-420 du 15 mai 2001 relative aux nouvelles r�gulations �conomiques

Came into force in May 2001. Covers various aspects of labour market regulations, including increased information and consultation rights for employees in company takeovers, requirement for companies to publish board level directors' remuneration and benefit. It also covers changes in the tax treatment of share options.

Discrimination
Loi 2001-1066 du novembre 1002 relative � la luttte contre les discriminations

Came into force in November 2001. Amends Labour Code Art.L 122-45. It extends the scope of existing anti-discrimination measures; broadens the areas of potential discrimination by including physical appearance, family name, sexual orientation and age; shifts the burden of proof in discrimination cases to the employer and increases power of enquiry for the Labour Inspectorate.

``xfrance``xlpa``xNew Employment Legislation - 2001``x1011186824,7372,Essentials``xSummary of key pieces of employment legislation that came into law in 2001``xnewlaw2001 ``x

Social Modernisation
Project de loi de modernisation sociale

This proposed Bill has been extensively amended. It deals with collective redundancy and workplace consultation procedures, including a more restrictive form of 'economic redundancy'; increased retraining and redeployment requirements for employers; the establishment of an arbitration council in workforce redundancy consultation in companies with more than one hundred employees and the right to reinstatement where a court finds that a social plan is null and void. Introduces clauses on workplace bullying (harc�lement - literally moral harassment) to the Labour Code.

Paternity Leave
Part of the Project de loi du financement de la s�curit� sociale 2002.
Should come into force from January 2002. Paternity leave is to be extended from three days to two working weeks, paid at 80 per cent of gross pay up to a monthly ceiling of €2,279.

``xfrance``x``xEmployment Law Pending 2002``x1011187010,45760,Employment_Law``xEmployment legislation expected to be enacted in 2002``xpending2002 ``x

In Soci�t� Nikon France SA v M. Frederic O., dated 2nd October 2001 and which has only recently been published, the French Supreme Court (Cour de Cassation) decided that the right to privacy of correspondence was absolute and that an employer was not allowed to access the personal email folders of its employees.

In this case, specific provisions of the internal workplace rules of Nikon France, which formed part of the contracts of employment of their employees, prohibited the latter from using for personal purposes the electronic systems put at their disposal for professional use.

The employer examined the content of the personal mailbox of an employee in order to ascertain whether this prohibition was being respected. The employer considered that it was entitled to access the mailbox, notwithstanding the fact that such action was not provided for in the company’s internal rules, on the basis that under French labour law an employer has a general right to monitor the activities of its employees during working hours. As a result of its investigation it dismissed the employee on the ground that the latter had failed to respect the internal rules of the company by using the electronic resources of the company for personal ends and that this behaviour amounted to a fault (“faute grave”) which was sufficiently serious to deprive the employee of any right to compensation for his dismissal.

The Cour de Cassation held that the dismissal was contrary to the law since the means used to establish the grounds for dismissal violated a basic principle - the right to respect for private life - which extends to the private life of employees when they are at their workplace.

The Court relied on both article 8 of the European Convention on Human Rights and also on specific French legal provisions (article 9 of the Code civil, article 9 of the Code de Proc�dure Civile, article L.120-2 of the Code du Travail). The court did not consider whether the provisions of Articles 10 or 11 of the EC Directive 95/46 EC might be applicable.

The immediate consequence of this decision is that from now on, notwithstanding any provisions to the contrary contained in internal rules applicable to the workplace which prohibit the use of emails for personal purposes, a French employer is no longer entitled to verify the content of the personal mailbox of an employee, in particular with a view to disciplining or dismissing the latter.

The UK position

Employers in the UK are also subject to article 8 of the European Convention on Human Rights due to the Human Rights Act 1998 coming into force in the UK on 2 October 2000. If similar facts to the above case arose in the UK it is likely that the English courts would adopt a more robust approach and reach a different result. Inspection of emails by an employer after reasonable notice to the employee is likely to be permitted in the UK.

It is critical however for employers to ensure that they have clear guidelines in place for employee usage of email. Adequate steps must be taken by the employer to ensure employees are made aware that firstly the guidelines are in place and secondly that monitoring will take place to enforce the guidelines. Employers should also restrict monitoring to legitimate business purposes.

The content of this article does not constitute legal advice and should not be relied on in that way. Specific advice should be sought about your specific circumstances.

� Herbert Smith

� Herbert Smith``xfrance``x``x Recent French Supreme Court Decision on Employer Monitoring of Employee�s Email ``x1011651787,60824,Employment_Law``xAuthors: Herbert Smith law firm. ``x ``x``xfrance``x``x``x1011878593,61586,Essentials``xNational, religious and regional holidays and festivals in France``x ``x``xfrance``x``x``x1011878682,57620,Essentials``xLocal Weather in France``x ``x

Jones Day

American pension funds, the modifications of French Company Law resulting from the provisions of Law No. 2001-420 regarding the new economic regulations, from May 15, 2001 and their objectives in the field of corporate management.

The globalization of financial markets, the saturation of the investment opportunities in their domestic market as regards the sums collected through the alternative retirement systems have led the American pension funds (the "Funds") to seek geographical diversification of their investments by favoring access to the markets of the major economies outside the United States.

The Funds, both public and private, are subject to a "distribution" logic that does not have an equivalent in France. The Funds are required to adopt a carefully targeted investment policy by reason of the obligation to pay out to their members at the end of a long period of contributions a sum which is at least equal to the sums paid in, adjusted for inflation. This policy, based on a multifaceted approach, cannot ignore the economic fundamentals of each company or industrial sector. Beyond those criteria, the moral obligation of the Funds to obtain a certain result has led them to consider the totality of the parameters of long-term investment management.

Among these parameters are the principles of corporate governance. In fact, according to an Anglo-Saxon concept, which developed during the period following the stock market crash of 1929, the methodology employed prior to any decision to invest in a company should not constitute the only basis for the long-term nature of such investment. Beyond the economic analysis, the Funds consider that becoming a shareholder is only a first step, but that it is just as important to ensure that throughout the period of investment their obligations towards their members lead them to make use of all the prerogatives of a shareholder.

The "hold period" for an investment by the Funds is quite different from that of other institutional investors. The turnover rate of the investment portfolios of the Funds is approximately ten years, whereas the average is two to three years for mutual funds. This longer term approach, unlike approaches based on a higher turnover rate which permit recovery of the gains resulting from the volatility of shares, results in a close correlation between the performance of the Funds and the creation of wealth or of shareholder value which a company would normally achieve only over a longer period.

The actual exercise of the voting rights which attach to the shareholdings is compulsory for the Funds within the United States. In order to enable them to express their votes fully, the Funds have developed a permanent dialogue with the governing bodies of American companies. This dialogue is intended to facilitate: (a) the distribution of information to the entire market; (b) taking account of the sensitivity of the Funds; and (c) an understanding of the shareholder value created by the management of the particular company. As a result of this dialogue, the draft resolutions presented in the shareholders' meetings have been refined or amended. The Funds, which willingly define themselves as "shareowners" and reject the generic label "shareholders" have, through their policy of permanent dialogue, often sought to encourage the development of proposals allowing American companies:

to separate the functions of Chairman and Chief Executive Officer;
to provide greater transparency as to the conditions for granting stock options;
to prevent conflicts of interest which may arise in the course of company activity;
to reaffirm the principle of equality among shareholders by means of removing all by-laws provisions contemplating differentiated voting rights or limitations on voting rights; and
to remove all provisions allowing a company to render a takeover more difficult (poison pills).

In the recent past, the harmonization of the policy regarding the conforming of the rules relating to corporate governance with the wishes expressed by the Funds has often had a direct effect on the valuation of companies. The California Public Employees Retirement System ("CalPERS"), the largest public pension fund in the United States, willingly places itself in the category of "activist shareholders," to cite a term whose ambiguity leaves room for multiple interpretations. For the year 1995, CalPERS estimated at $150 million the return on investment generated by the adoption by certain companies of rules of corporate governance which were in compliance with the Funds' standards.

While France is considered as an opportunity for diversification, the Funds would not seize those investment opportunities if it meant diverging from the criteria and the requirements which they apply across the Atlantic.

Globalization also applies to the principles of corporate governance. The work done in France as from 1995, and in particular the two Vienot Reports and the successful completion of the work of the OECD could only be welcomed by the Funds which considered these as the first steps in a reconciliation between French market practices and the current norms in the United States or in other countries, and which were formalized in 1999 through the work of the International Corporate Governance Network.

The French Law No. 2001-420 on the new economic regulations which was enacted May 15, 2001, and which appears likely to go down in history under the name "NRE Law", is substantially based on the recommendations of the Vienot Report of July 1999.

Beyond certain modifications which could only be made by law, this text was intended to lay down the principles of an expanded regulatory regime even though "institutionalized" regulatory bodies already exist (in particular the Commission des Op�rations de Bourse and the Conseil des March�s Financiers) as do non-"institutionalized" elements (such as the "financial market" and the players on that market, in particular).

It would appear that, from the standpoint of the Funds, such intervention in a field normally left to administrative regulation could be interpreted as a new demonstration of the concept of the "French exception".

The NRE Law should be welcomed by the Funds, inasmuch as it:

authorizes the existence of a chief executive officer dedicated to managing the company's business and freed up from the functions of the Chairman of the Board of Directors. This new distribution of roles within a monistic structure (which has proved to be more flexible than the dualistic structure, i.e. Supervisory Board and Management Board) should allow the Chief Executive Officer to devote himself exclusively to the management of the company's affairs, by releasing him from certain tasks.
allows an easier reading of the compensation packages of the top executives, including the granting of stock options. The information on individual compensation introduced as a result of the wording of the text is consistent with the framework of the corporate governance charter adopted by the International Corporate Governance Network in 1999. The Commission des Op�rations de Bourse, acting in its capacity as a regulatory body, has decided to require such a breakdown in each of the documents which it must review and approve, as from September 1, 2001;
submits, in the framework of the prevention of conflicts of interest, all agreements between a company and any of its shareholders holding a percentage of voting rights in excess of 5%, to prior authorization by the Board of Directors.
sets a limit on the number of directorships an individual may hold, and at the same time reduces the number of directors. In the logic of the Funds, this measure should allow directors who will be less "diluted" in the exercise of their functions to act more effectively in Boards of Directors which are more focused;
provides that, under conditions which remain to be defined by decree, information regarding the company's approach to dealing with the social and environmental consequences of its activities must be provided to the shareholders; and
moves to 5% the threshold of shareholding as regards the possibility for one shareholder, or several shareholders acting as a group, to submit written questions to the Board of Directors or to request the dismissal of a statutory auditor.

The NRE Law may, from the standpoint of the Funds, be considered as a reaffirmation of a concept of corporate governance, the globalization of which would naturally relate to the interrelationship among the different financial markets. Nevertheless, a certain number of provisions which continue to be sought by the Funds are today outside the purview of French laws or regulations. The frustration of the Funds is primarily focused on the following points:

the limitation to 2 (or 3, in certain circumstances) directorships to be held by any one director (source: CalPERS);
the limitation on length of the term of a director;
the limitation on the term of the statutory auditors;
the affirmation of the "one share, one vote" principle and the removal of any clause establishing a double voting right, a limitation on voting rights, or a differentiated rule regulating the allotment of dividends;
the elimination of all clauses rendering a possible takeover by a third party more difficult;
implementation of means of participation in the meetings for the benefit of the shareholders, such means being identical to those now granted to the members of the Board of Directors by the NRE Law;
the public access to the proceedings of the boards, audit committees and general meetings of shareholders; and
the adoption of "international" accounting standards.

A comparative analysis of the various charters of corporate governance adopted by the Funds and the current state of French law and practice reveals a certain number of points of divergence. A reconciliation, in the event it should be sought could be envisaged by means of the evolution of market practices at the initiative of the various players, i.e. the regulatory bodies, the issuers, the shareholders, or (when necessary for their implementation) by legislative action

The content of this article does not constitute legal advice and should not be relied on in that way. Specific advice should be sought about your specific circumstances.

� Jones Day

``xfrance``x``xAmerican Pension Funds In France - Corporate Governance ``x1012231965,76752,Employment_Law``xBy Mr Jean-Marc Marc Franceschi, Jones Day, 18 January 2002``x ``x``xfrance``x``x``x1012664655,98095,Money_Matters``xCheck Local Salary Levels``x ``x

``xfrance``x``x``x1013276681,47787,People_and_Culture``xMinistry of Culture and Communication ``x ``x

Population: 59.4m (2000)

Population Growth: 0.4% (average, 1996-2000)

Land Area: 549,000 sq km

Fiscal Year: Starts January 1st

Unemployment:

Currency: (French franc (Ffr)): FFr7.10:US$1 (2000, average); FFr7.48:US$1 (August 7th 2001); Euro 0.88:US$1 (August 7th 2001)

GDP: FFr9.23trn (2000); US$1.3trn (2000, at market exchange rate)

GDP Growth: 2.6% (1996-2000); 3.4% (2000)

GDP Per Head: US$21,863 (2000, at market exchange rate); US$23,700 (2000, at PPP)

Inflation: 1.3% (average, 1996-2000); 1.7% (2000, average)

``xfrance``x``xKey Facts``x1014211863,17036,Essentials``xCurrency, population, unemployment and inflation rates``xFrancefacts ``x

In France, children aged between two and six to attend �cole Maternelles or nursery schools.

Pre-school education is provided free by the state and every child aged three and over is entitled to a place in nursery school.

There are also a small number of private schools, which may require some tuition fees.

``xfrance``xa``xPre-School Education``x1014586299,72291,``x``x ``x

It is compulsory that children attend school from age six to sixteen.

In France, the Minist�re de l'Education is responsible for all education matters but the regional education bodies, the Acad�mie oversee the general running of schools.

All compulsory education is free.

Most children start primary school - �cole Elementaire - at five years old.

The primary cycle is divided into two stages with the first two-year stage concentrating on basic reading, writing and arithmetic skills and the children are also introduced to new subjects.

The second stage lasts three years and pupils study the same subjects, but in greater depth.

``xfrance``xb``xPrimary School Education ``x1014586400,52588,``x``x ``x

Lower Secondary Education
Lower Secondary Education (niveau secondaire inf�rieur) takes place in coll�ges in three cycles involved: the Observation cycle (one year), Consolidation cycle (two years) and the Orientation cycle (one year).

During the consolidation cycle new subjects are introduced including a second new language or a science subject. Students must then decide between the second language and science in the final year/ Orientation cycle. At the end of the four years students receive the dipl�me national du Brevet.

Upper Secondary Education
In the Lyc�e there are three different types of secondary education on offer. Following completion of their first year, students have to decide which option to take.

They have a choice of studying Literature, Economics and Social Science, and Science under the General education course. When this course is completed, students are awarded the Baccalaur�at, which entitles them to apply to higher-level education. Generally, the Baccalaureate satisfies the requirements of most high-level institutions in European Countries.

Students may also choose to pursue Technical education and they also receive the Baccalaureate upon course completion. There are four choices within this cycle including Tertiary Sciences, Industrial sciences, Laboratory Sciences and, Medical and Social Science. There are also specialised courses on offer in Hotel and Catering, Applied Arts, Music and Dance.

Pupils entering vocational education can study for CAP, Certificat d'Aptitude Professionelle (two years) or a BEP, Brevet d'Eludes Professionnelles.

``xfrance``xc``xSecond Level Education``x1014586587,46059,``x``x ``x

Students considering travelling to France to pursue their studies should spend at least one year researching and examining all the various courses on offer and their requirements.

There are two types of higher education on offer, vocational and academic. Vocational study lasts for two years and is always an option for those who wish to pursue more practical/hands-on careers.

The Dipl�me Universitaire de Technologie, DUT, has 24 specialisations and the Brevet de Technicien Sup�rieur, BTS, has 90 specialisations. There are also specialised schools where students interested in paramedical or social areas can train for specific professions.

For those students interested in pursuing academic study, there is a general studies programme in the first and second year of higher education. This programme aims to prepare the student for the DEUG, Dipl�me d'Eludes Univeritaires G�n�rales or to enter the CPGE, Classes Pr�paratoires aux Grandes �coles.

The second and third cycles are either vocational or academic orientated and Universities and Grandes �coles offer them. The Grandes �coles offer a range of degrees; the Dipl�me d'Ing�nieur and the Dipl�me de Haut Enseignement Commercial are both three years long.

After the first cycle, University degrees include Licence, Maitrise and Doctorat. These qualifications are valuable for those who wish to get into the teaching profession.

There are about eighty-eight state universities and twelve private universities in France with almost 350 Grandes �coles spread through out the country.

The academic year runs from October to June and September to June for Lyc�es.

``xfrance``xd``xHigher Education ``x1014586689,81288,``x``x ``x

November 2001 saw the adoption in France of a new law to prevent discrimination at the workplace. The legislation adds new prohibited grounds of discrimination (including age and sexual orientation), adjusts the burden of proof in discrimination cases and makes it easier to bring court cases.

On 6 November 2001, after 13 months of discussion, the National Assembly passed a bill on combating discrimination at the workplace, which forms part of the current Socialist-led government's programme of anti-discrimination measures. The new law supplements the existing provisions of the Labour Code, on the basis of both EU Directives and French case law, in order to provide better protection for job applicants and employees throughout their careers. Article L.122-45 of the Labour Code, which defines the various forms of discrimination, is expanded and reworked to broaden its field of application and amend the provisions on the burden of proof so that they are more favourable to the employee.

Grounds for discrimination and discriminatory practices
The list of prohibited grounds for discrimination previously provided for - including origin, sex, family situation and membership of an ethnic group, nation or race - is now expanded to include physical appearance (height, weight, attractiveness etc), surname, sexual orientation and age. Martine Aubry (the Minister for Employment and Solidarity until 17 October 2000) stated that `all victims of discrimination, women, people with disabilities, foreigners and immigrants, gay men and lesbians� must be given the message `that our Republic is there to ensure that their rights are respected� . She labelled all forms of discrimination `unacceptable violence� .

The introduction of the principle of no discrimination based on age aims to bring French law into line with EU Council Directive 2000/78/EC of 27 November 2000, establishing a general framework for equal treatment in employment and occupation ( EU0102295F). However, the criteria for applying this principle are detailed in order to avoid a challenge being mounted to employment policies targeted on certain age groups.

The relevant section of the Labour Code now reads: `No person can be eliminated from a recruitment process (...) due to their age, sex, lifestyle, sexual orientation, age, family situation, non-membership, whether genuine or assumed, of an ethnic group, nation or race, political beliefs, trade union activities, religious beliefs, physical appearance, surname, state of health or disability.� Moreover, the definition of discriminatory practices provided by Article L. 122-45 of the Labour Code has been broadened to cover an employee's entire career.

From now on, the ban on discrimination extends throughout a person's working life, covering: recruitment; access to a placement or in-company training programme; pay; training; redeployment within a company; posting; qualifications; job classification; promotion; transfer from one workplace to another; and renewal of contract.

Amendment to burden of proof
A key point of the new law deals with the amendment of the provisions on the burden of proof in discrimination cases. The burden of proof has been amended so that if a legal case is brought, it is no longer only the employee's responsibility. Hitherto it had been the responsibility of the employee to prove that he or she had been the victim of discrimination, hence the very low number of successful convictions. The burden of proof will now fall equally upon the employer.

Employees or job applicants who feel that they have been discriminated against must present the court with evidence `that leads one to believe that direct or indirect discrimination has taken place� . In the light of this evidence, it is up to the defendant to `prove that the decision taken was justifiable according to objective facts that had no connection with any form of discrimination� . It is the judge's task to arrive at a conclusion, if needs be after having ordered `any preliminary investigations deemed useful� .

This measure complies with the case law of the French Supreme Court of Appeal (Cour de cassation) and the European Court of Justice (ECJ), and transposes into French law EU Council Directive (97/80/EC) of 15 December 1997 on the burden of proof in cases of discrimination based on sex.

Easier reporting of discrimination and legal procedures
The new law aims to facilitate the bringing of claims of discriminatory actions and the referral of such cases to the courts. Labour Inspectors have received extended powers for their investigations so that discriminatory actions can be brought to light. Among other powers, they can have access to any document or information which might be useful in identifying facts liable to enable discrimination to be proven.

The right to bring a court case over a discrimination claim has been extended to trade unions, provided that they have representative status either nationally or in the relevant workplace. They can act for an employee claiming to be the victim of discrimination without having to have a mandate to do so from the interested party, as long as he or she has been given written notification and has not opposed the union action by the end of a 15-day period. Non-governmental organisations working in the anti-discrimination field can also act for a plaintiff, if they have been legally constituted for at least five years and have the written consent of the interested party.

The right of workforce delegates to bring a matter to the notice of company management when they believe that there is an infringement of people's rights or individual freedoms, is extended to cases where a workforce delegate identifies a discriminatory measure. Moreover, sector-level collective agreements must now include a clause on dealing with racial discrimination before they can be extended (ie applied compulsorily to non-signatory employers). Finally, for civil servants, the principle of banning discrimination has been established, although they are not covered by the new burden of proof system that has been implemented in the private sector.

Union reactions
The General Confederation of Labour (Conf�d�ration g�n�rale du travail, CGT) deems the new anti-discrimination law to be `an extra tool to be wielded immediately (...) The extension of sanctions to cover new grounds for discrimination will enable action to be taken in new areas.� However, it regrets that `concessions have been made to the employers (...) allowing certain type of age discrimination to continue.�

As far as the French Democratic Confederation of Labour (Conf�d�ration fran�aise d�mocratique du travail, CFDT) is concerned, the new law `is a useful addition to existing legislative measures and effectively affords greater leverage for action on this issue� , but the opportunity should be `taken to do more and do better� , and the high levels of unemployment among non-EU nationals and young people from immigrant backgrounds `shows the necessity of implementing tougher measures for integrating people into the workforce and providing access to employment� .

The General Confederation of Labour-Force ouvri�re (Conf�d�ration g�n�rale du travail-Force ouvri�re, CGT-FO) welcomed the new provisions, especially the opportunity for unions present in the workplace or with representative status nationally to go to court on behalf of an employee claiming discrimination.

For the National Federation of Independent Unions (Union nationale des syndicats autonomes, UNSA), the adoption of the law marks a serious step forward. It underlined in particular the noticeable increase in the powers of the Labour Inspectors and the option for unions and organisations with recognised authority in the field to go to court for employees claiming discrimination.

Commentary
The new law, sponsored by the (Socialist) chair of the National Assembly's Social Affairs Committee, Jean Le Garrec, slots directly into the government's proactive policy on discrimination, launched in March 2000 by the `General Conference on Citizenship� ( `assises de la citoyennet� ) and other measures to fight racial discrimination.

According to the deputy in charge of presenting the bill to the National Assembly, Philippe Viulque, the new law `aims to act as a warning against odious practices� , given that two out of 10 employees feel that they have been discriminated against during their working lives. It will not, he stated, resolve all the difficulties involved in bringing `often surreptitious� forms of discrimination to light, but its main virtue is its dual `deterrent-supressive� nature. Mr Viulque indicated that `some companies, particularly in the temporary agency work sector, have already reviewed their recruitment procedures and brought in `good practice charters� , in anticipation of a potential rise in claims that the new law might trigger off.�

Author: Mouna VIPREY, Institution: Institut de Recherches Economiques et Sociales
First published: 4 January 2002

� European Foundation for Improvement of Living and Working Conditions

``xfrance``x``xNew anti-discrimination law adopted ``x1015419310,96566,Employment_Law``xNovember 2001 saw the adoption in France of a new law to prevent discrimination at the workplace. The legislation adds new prohibited grounds of discrimination (including age and sexual orientation), adjusts the burden of proof in discrimination cases and makes it easier to bring court cases.``x ``x

In December 2001, the government-appointed Pensions Stewardship Council (COR) issued its first report on the future of French pensions, providing a detailed analysis of current schemes and possible future reforms. Without recommending a particular option, which it sees as the responsibility of politicians, the COR identifies a number of principles on which to base future decisions.

The Pensions Stewardship Council (Conseil d'orientation des retraites, COR) was set up in May 2000. It reports directly to the Prime Minister and is made up of 32 members: 16 social partner representatives - though the Movement of French Enterprises (Mouvement des entreprises de France, MEDEF) has refused to sit on the Council until the government commits itself to overhauling the pensions system; three members of the National Assembly; three Senators; four representatives of the state; the chair of the National Union of Family Associations (Union nationale des associations familiales, UNAF); the vice-chair of the National Committee of Retirees and Older People (Comit� national des retrait�s et des personnes �g�es); and four people chosen for their particular qualifications and experience in this area. The COR is chaired by Yannick Moreau.

On 6 December 2001, six months before the presidential election, the COR published its first report. After the `Charpin Report� and the `Teulade Report� (published in March 1999 and December 1999 respectively), this was the third report in preparation for a reform of retirement pensions.

More thorough analysis
In its evaluation of the current situation, the COR stresses the importance of the effects of the pension reforms begun in the 1990s, which, if current legislation is not amended, will lead to a steep fall in the `substitution rate� (the relationship between pension and previous income from work) in the private sector, of around 20% on average. It laments the fact that the effects of the past reforms are little known and misunderstood, which has led to confused perspectives and exaggerated concerns about retirement pensions. Contrary to previous official reports, the COR's expresses its avowed willingness to reject any form of `sensationalism� on this topic.

The report comprises a detailed analysis of the economic and demographic factors influencing the future of retirement pension schemes over the next 40 years. Unlike the previous two reports, the scenarios described include two new variables: labour productivity and the division of added value between work-derived and capital-derived income. The financial projections for 2040 point to the need for additional pension funding of about 4% of GDP, if there are no changes to legislation. The impact of a possible review of the pension reform measures taken by the Balladur administration in 1993 is also assessed.

Alongside this financial data, the COR examines the impact on retirement pensions of changes in the organisation of society, particularly the sequence of periods of work, leisure and lifelong learning. In its future work, the COR is planning to continue this rethink of how such periods in an individual's life can be linked more effectively.

Guidelines and proposals
The COR report's main guidelines and proposals are set out below.

Renewal and adapting the `social contract between generations�
In terms of renewing and adapting the `social contract between generations� , three basic principles must be reaffirmed:

`pay-as-you-go� pensions (whereby the pensions of people currently in retirement are met from the contributions of those currently in employment) must remain the basis of a system based on inter-generational solidarity;

the system must remain based on the link between work and pensions, even if this means incorporating some form of redistribution by granting non-contributory benefits; and

the right to work is as important as the right to a retirement pension.

Complementary principles put forward by the COR are:

ensuring the financial soundness of the retirement pension system;

ensuring equal treatment and effort among contributors;

granting greater leeway for individual choices; and

affirming the right to information.

Immediate changes in the field of work
The COR advocates a proactive policy for employing older workers, to be enacted under the tripartite leadership of the state, the trade unions and the employers' associations. This policy should:

alter the perceptions and practices of companies, central and local government departments and employees;
limit the use of early retirement and encourage gradual progressive retirement;

adapt jobs to fit an ageing workforce, by fostering lifelong learning and intervening in working conditions and work organisation, placing more value on the skills acquired by experienced workers; and

create a favourable regulatory environment, though the option of earning a salary alongside a pension, and the elimination of age discrimination. This perspective, important both in relation to the needs of the labour market and retirement pension systems, involves a great deal of mobilisation and radical change in the representation and practices of public and private-sector actors.

In the COR's view, such a commitment is not only necessary but is a prerequisite for lengthening the period during which pension contributions are paid.

Targets for pension levels and balancing instruments
The report highlights the possible combinations of, and relationships between, three important variables in attaining a given substitution rate for pensions: the level of contributions; the age at which the worker is due to stop work; and the level of pension. The COR advocates that amendments intended to guarantee the financial balance of the pensions system be very clearly publicised, unlike the strategy deployed in connection with the 1993 reform. It thus favours clearly stating the future level of retirement pensions (ie the substitution rate) in order to assuage people's anxieties.

Responding to citizens' expectations
In terms of equality and solidarity among pension contributors, the COR proposes that more weight be given to a job's degree of hardship, the ups and downs of career paths and inequalities between occupational categories, all the more so for employees who have paid contributions for a long time. It also favours offering more choice to individuals, for example by modifying reductions in pension entitlement for early retirement and increases in pension for postponed retirement, and by promoting gradual progressive retirement. Lastly, the report stresses that the right of access to information must be greatly improved.

With respect to the burning issue of the differences in contribution periods between schemes covering private and public sector employees, the COR examines the implications of a range of options without choosing any of them. It identifies a serious bone of contention between the members of the COR: the way in which equality between private sector employees and civil servants can be achieved in terms of the period of contributions required to grant entitlement to a full pension. The options are either to require everybody to pay contributions for 40 years or return to a 37.5-year period.

The COR strongly expresses its desire not to close the debate and its wish to defer the making of the most difficult decisions to collective bargaining and politicians. It thus leaves it up to the state and the social partners to solve issues such as level of pensions, the choice of measures to fund pensions and the establishment of a timetable for implementing them.

Reactions
MEDEF, which refused to take part in the COR's work, is still highly critical. Denis Kessler, the MEDEF vice-president, stated that `this third report has nothing new to say. But the COR has done exactly what it was supposed to do, earn two years' breathing space so that any decision is postponed until after the elections.�

The trade unions that participated in the COR have welcomed the `serious and thorough� study conducted. The diagnosis and the need for reform are now endorsed by all the participants. Nicole Notat, the general secretary of the French Democratic Confederation of Labour (Conf�d�ration fran�aise d�mocratique du travail, CFDT), feels that `the COR has done serious work, but the question is, what are the various stakeholders, including the government, going to do with the findings?�

Jean-Christophe Le Duigou of the General Confederation of Labour (Conf�d�ration g�n�rale du travail, CGT) commented that the COR had provided `a clear overview of the issues being discussed� , which had `not previously been identified� . He added that the COR had `taken explicit positions on basic issues� . Mr Le Duigou feels that policy on age and work is `the principal means of funding retirement pensions� .

The COR's union members, particularly CGT and CFDT, have pointed out that `the COR is in no way a forum for negotiation� . The Unitary Union Federation (F�d�ration Syndicale Unitaire, FSU), concluded that the report is a `toolkit for an ongoing debate� .

Commentary
The modus operandi adopted by the COR enabled a certain degree of consensus to be obtained, especially on the need to instigate a policy on age and work, and allowed the usual `apocalyptic� discourse on the future of pensions to be avoided. Examining the various avenues of action while leaving the choices open enabled criticism from some trade unions to be sidestepped.

However, the forthcoming phase of bargaining on the pensions issue is still extremely sensitive. The possible bringing into line of the contribution period for civil servants with that of private-sector employees, and the reform of the special schemes - in state-owned companies such as EDF-GDF (electricity and gas) and SNCF (railways) - are two particularly explosive issues in the context of an election campaign. The debate is set to continue beyond the 2002 parliamentary and presidential elections.

Author: Annie Jolivet, Antoine Math, Institution: Institut de Recherches Economiques et Sociales, first published date: 29-01-2002

``xfrance``x``xPensions review group presents first report``x1015419461,75836,Employment_Law``xIn December 2001, the government-appointed Pensions Stewardship Council (COR) issued its first report on the future of French pensions, providing a detailed analysis of current schemes and possible future reforms.``x ``x

Late 2001 saw the publication by the Ministry of Employment of two studies of employee representation in French firms, based on widely-differing statistical sources. The Ministry published both the results of the 1999 works council elections and the findings of a survey of the existence of various employee representative structures in companies and workplaces. The two studies confirm that works councils are now a significant presence in the industrial relations landscape, and indicate a recovery in support for trade unions, particularly CFDT and CGT.

For several years, the methods of collecting statistical data on the collective representation of French employees, published by the Ministry of Employment, have been changing. New information derived from various sample-based surveys - such as `R�ponse� and the Survey on Labour Activity and Employment Status (Enqu�te sur l'Activit� et les Conditions d'Emploi de la Main d'Oeuvre, ACEMO) - has supplemented the old sources such as election results for works councils, and industrial tribunals..

In late 2001, the Ministry of Employment's Office for Research and Statistics (Direction de l'animation de la recherche, des �tudes et des statistiques du minist�re de l'Emploi, DARES) published an analysis of the 1999 works council election results (Premi�res synth�ses, No. 49.1, December 2001) as well as findings from an ACEMO survey on employee representative institutions in 1999 (Premi�res informations, No. 48.1, November 2001). The almost simultaneous publication of these two studies has highlighted the differences between the available data sets in terms of their nature, production methods and findings.

1999 works council election results
The DARES study of works council election results covers all companies or workplaces with at least 50 employees, which have a statutory obligation to hold works council (comit� d'entreprise) elections every two years. These election results are sent by the concerned companies to the Ministry of Employment's decentralised offices. The results are often used to assess the strength of support for trade unions, which present slates of candidates for election.

The field of study for the DARES research is not directly comparable from one year to the next for various reasons. First, changes in company structure (closures, mergers, change of location etc) have an impact on representative institutions that is hard to deal with statistically. Second, since 1991, elections at the SNCF national railway have taken place in even years only.

At SNCF, whose electorate accounts for almost 10% of all works council votes nationally, the turnout is higher than elsewhere, and most importantly, only unions are represented. This schedule for works council elections therefore justify a method of analysing the aggregate voting scores over a period of two consecutive years, ie on an `election cycle� basis. This allows union support and its development to be charted more precisely. However, the results from an even or odd year are still comparable with those from two years previously - thus the 1999 results are comparable with those for 1997.

The 1999 election results corroborated prior developments. The election turnout was slightly down on 1997, by 0.5 percentage points to 65.3 %. This trend is mostly due to large companies, where the drop was in the order of two points.

The most significant fact to arise from the 1999 results is the continuing decline of non-union slates, which can run in the second round of voting for works council members if there is a lack of union candidates in the first round. In the 1980s, union support was steadily eroded by non-union slates.

Since 1992, this trend has been reversed. Between 1997 and 1999, non-union slates recorded their largest fall in support, by 3.5 points, thus falling below 26% of the vote. The larger the workplace or company, the higher the support for unions. The non-union slates, more often present in smaller workplaces or companies, experienced a considerable reduction in their vote (by six to seven points), in firms with fewer than 100 employees, which benefited the union slates, especially those of the General Confederation of Labour (Conf�d�ration g�n�rale du travail, CGT).

The relative support for the various unions has changed little. Since 1991, the French Democratic Confederation of Labour (Conf�d�ration fran�aise d�mocratique du travail, CFDT) has overtaken the CGT in odd years (ie those where no elections took place in the SNCF), with CGT leading both in even years and overall in each two-year cycle. This was also the case for 1999. Between 1997 and 1999, CFDT increased its vote by 2.5 points, to reach 22.9%, while CGT gained 1.1 points to 21.5% of votes cast.

The French Christian Workers' Confederation (Conf�d�ration fran�aise des travailleurs chr�tiens, CFTC) increased its vote by 0.7 points to 5.8%. The General Confederation of Labour-Force ouvri�re (Conf�d�ration g�n�rale du travail-Force ouvri�re, CGT-FO) and the French Confederation of Professional and Managerial Staff-General Confederation of Professional and Managerial Staff (Conf�d�ration fran�aise de l'encadrement-Conf�d�ration g�n�rale des cadres, CFE-CGC) retained their share of the vote at 12.2% and 6.3% respectively. The other unions unaffiliated to any of the five confederations with national representative status together lost 0.3 points of the overall vote, leaving their total support at 5.6%.

Representative bodies in 1999
The DARES survey of employee representative bodies and structures, carried out in 1999, used a representative sample of 11,000 workplaces and 900 businesses with at least 10 employees covered by the ACEMO field of study. Central and local government and much of the health and social service sectors are excluded . A questionnaire, sent to companies, dealt with the presence of various representative structures in the workplace or company being surveyed. These were:

workforce delegates (d�l�gu�s du personnel),

works councils;

workplace health and safety committees (comit�s d'hygi�ne, de s�curit� et des conditions de travail, CHSCTs); and

trade union delegates (d�l�gu�s syndicaux).

The findings of the survey show the extent to which the workplaces and companies concerned are covered by one or other of these institutions. A strong hypothesis in the study is that if one workplace or company is covered by a works council, all the workplaces within that company are also covered. The same assumption holds for trade union delegates and CHSCTs. The survey covers the period March 1997 to March 1999, in order to fit in all the works councils and workforce delegates elected on a two-year mandate.

In 1999, more than half of workplaces with at least 10 employees, which account for one in five employees, were not covered by any representative structure. However, collective employee representation is becoming a general rule in companies and establishments above the statutory threshold for setting up works councils. Fewer than 7% of workplaces with 50 employees or more now have no representative body, while 98% of those with over 250 employees have at least one form of representation. Moreover, the presence of union delegates leads to that of other representative structures. Lastly, the survey bears out the respective positions of the various unions: CFDT and CGT have the equal highest support.

Commentary
The production of French industrial relations statistics is paradoxical, in that there are few sources compared with other fields (such as employment), while at the same time the new sources used to increase the amount of data make them more confusing. Serious gaps between sets of findings have been identified, depending on the various sources. Thus, the hypothesis formulated in the ACEMO survey of employee representation in terms of the rate of coverage by such bodies, apart from being legally and sociologically questionable, might be interpreted differently by the companies surveyed.

In order to overcome these problems, a series of seminars involving researchers and trade unionists, arranged on the initiative of DARES and the Economic and Social Research Institute (Institut de recherches �conomiques et sociales, IRES), is currently assessing the available data and their possible development.

Author: Catherine Vincent, IRES

� European Foundation for Improvement of Living and Working Conditions

``xfrance``x``xResearch examines employee representation ``x1015419990,49185,Employment_Law``xLate 2001 saw the publication by the Ministry of Employment of two studies of employee representation in French firms, based on widely-differing statistical sources. The two studies confirm that works councils are now a significant presence in the industrial relations landscape.``x ``x

In October 2001, France's consultative Economic and Social Council (CES) adopted an opinion on measures to address the issues raised by the ageing workforce. The opinion deems increased employment among older workers as a priority in the light of demographic change, and sets out specific proposals to amend current practices.

On 24 October 2001, the Economic and Social Council (Conseil �conomique et social, CES) adopted an opinion entitled `The dynamics of the active population and employment: the forward planning of the age profile towards 2010� (Dynamique de la population active et emploi : la gestion pr�visionnelle des �ges � l'horizon 2010), based on a report tabled by Bernard Quintreau of the French Democratic Confederation of Labour (Conf�d�ration fran�aise d�mocratique du travail, CFDT).

The context is that, as the large `baby-boomer� generation starts to reach retirement age between 2007 and 2011, the proportion of people aged over 60 in the population will rise rapidly. Increasing employment rates among the over 55s is a priority, given their significant numbers and current low employment rates (48% for the 55-59s, compared with 75% for the 50-54s).

The CES opinion sets out a series of proposals designed to retain existing older workers in employment or to allow them to re-enter the workforce. These measures include:

enhanced information and awareness about age and employment among the various parties involved (businesses, employee representative bodies, sectors and regional and local authorities);
improved human resource management in the areas of work organisation, working environment, training, recruitment and career management. Preventive policies are required to promote mobility and vocational retraining;
promotion of the transition to retirement through voluntary and phased-in retirement and early retirement schemes;
structured and phased-in elimination of all state assistance for early withdrawal from the labour force;
elimination of age-related barriers. This should mainly be achieved by the implementation of the recent European Union Directive (2000/78/EC) on equal treatment in employment and occupation ( EU0102295F), which prohibits age-based discrimination, as well as a concerted review of age-related clauses in civil service competitive entry exams and the introduction of age-neutral employment policy provisions; and
organisation of a national conference on `the second part of careers� , geared to defining overall guidelines for a national action plan on the forward planning of the age profile of the workforce.

These guidelines should to be used as a basis for national intersectoral negotiations and then for sectoral and company-level talks. A parallel communication and awareness drive designed to alter current mindsets is also proposed.

In the light of the expected decrease in the working population by around 2010, it is necessary to raise employment rates in all age groups to ensure growth, cut unemployment and provide funding for pensions schemes. Beside matters related to older workers, the issue of lifetime management of working time - through measures such as elective part-time working or worker-initiated leave - must also be addressed, according to the CES opinion. These individual choices must be guaranteed by collective agreement.

The report was endorsed by a large majority of CES members (148 votes out of 158). Only the General Confederation of Labour-Force ouvri�re (Conf�d�ration g�n�rale du travail-Force ouvri�re, CGT-FO) failed to support it. This trade union confederation specifically rejected any plan `which challenged the right of workers to retire at 60� or questioned the opportunity for early withdrawal from the labour force based on length of service or particularly onerous working or living conditions. CGT-FO expressed particular misgivings over any review of state assistance for withdrawal from the labour force.

The French Confederation of Professional and Managerial Staff-General Confederation of Professional and Managerial Staff (Conf�d�ration fran�aise de l'encadrement-Conf�d�ration g�n�rale des cadres, CFE-CGC) called for `national intersectoral negotiations aimed at developing a code of conduct� to address employment discrimination experienced by older workers.

The day prior to the adoption of the CES report, the Minister of Employment and Solidarity, Elisabeth Guigou, informed the National Assembly of her intention to `ask Bernard Quintreau [the CES rapporteur] to set out tangible proposals in the areas of communication, advice, vocational training and work organisation with a view to changing the employment situation for older workers� .

Author: Annie Jolivet, Institut de Recherches Economiques et Sociales
First published 15 February 2002

� European Foundation for Improvement of Living and Working Conditions

``xfrance``x``xCES examines issues raised by ageing workforce``x1015420294,92010,Employment_Law``xAs France's large `baby-boomer� generation starts to reach retirement age between 2007 and 2011, the proportion of people aged over 60 in the population will rise rapidly.``x ``x

In December 2001, France's National Assembly passed the controversial `social modernisation� law, which includes measures making redundancies more onerous for employers. In January 2002, the Constitutional Council approved most of the new law, opening the way for its implementation soon. However, it rejected one key point: the proposed restrictive definition of the permissible grounds for redundancy.

Throughout 2001, a government bill on `social modernisation� proceeded through the legislative process in the French parliament. The bill contained a variety of social measures, but the core was made up of provisions relating to redundancies, precarious employment and vocational training. The bill gave rise to heated debate, which focused particularly on the issue of redundancies (licenciements �conomiques).

Amendments and controversy
In its bill, the government sought to make redundancy an employer's last resort. It thus proposed that, before being able to table a redundancy plan (plan social), employers must have convened negotiations or reached an agreement on introducing the 35-hour working week. In addition, employers contemplating redundancies would have to have reduced `structural overtime� . If the company failed to meet these requirements, the courts could be called upon provisionally to block the redundancy plan. The employer would also be required to propose redeployment to alternative jobs requiring equivalent skills within the company or group. The works council should be informed prior to any public announcement of redundancies.

The left wing of the ruling Socialist-led coalition advocated a more restrictive definition and stricter rules governing redundancies in order to tackle the perceived problem of `abusive� redundancies. The text was considerably strengthened by amendments tabled by the French Communist Party (Parti communiste fran�ais) against the backdrop of the industrial unrest which broke out after several major redundancy plans were unveiled in spring 2001. As a result, the amended bill provided for:

a restrictive definition of redundancy, narrowing the acceptable grounds for such job losses to cover only particularly serious economic difficulties, technological advances and reorganisational requirements;

new rights for works council to oppose redundancies; a new system of mediation in redundancy disputes; and a new obligation on companies planning redundancies to draw up a `plan to safeguard employment� (plan de sauvegarde d'emploi).

Conservative members of parliament criticised what they perceived the `anti-economic� nature of the legislation. Their criticisms were based on the objections raised by some employers' associations. Indeed, the Movement of French Enterprises (Mouvement des entreprises de France, MEDEF), with the support of the French Association of Private Business (Association Fran�aise des Entreprises Priv�es, AFEP), waged war on the proposed legislation.

In October 2001, AFEP, - a lobby group made up of 80 heads of major French companies - published a manifesto signed by 56 of its members in the Les Echos daily newspaper. This document highlights the `risks� inherent in the new redundancy measures `for companies, their employees, and in more general terms, the employment situation in France� . The organisation contended that the proposed definition of redundancy was `a hindrance for companies� , which `need to take prompt action to address changes in the marketplace� .

The manifesto was especially critical of the doubling of the period before a redundancy plan can be put into effect (to a maximum of 80 days) and the strengthening of court powers. For AFEP, the latter flies in the face of `the desire to develop genuine social dialogue� . Lastly, the document states that requiring companies to provide information on redundancy plans to employee representative bodies first is not consistent with stock exchange rules.

The social modernisation law was finally passed by the National Assembly in December 2001. Conservative members of parliament then – as a last resort – referred the legislation to the Constitutional Council (Conseil Constitutionnel) for review.

Legislation amended
In January 2002, the Constitutional Council approved the law's provisions on redundancies with one key exception: it rejected the definition of redundancy.

The Council contended that the wording used in the legislation was overly restrictive, given that it provided only for three possible grounds for economic redundancy: `major economic difficulties where all possible solutions have been exhausted� ; `technological changes endangering the very survival of the company� ; and `reorganisation required to ensure the survival of the company� .

This definition, which precludes any other grounds for redundancy, such as cessation of business, was deemed to contravene two principles: first, the freedom to do business; and second, the safeguarding of employment. The Council maintained that these provisions would have prevented companies from pre-empting future difficulties by taking action designed to avoid larger-scale redundancies at a later date. Moreover the courts would not only have controlled the grounds for redundancies but also the choice of solution. As a result of the Constitutional Council ruling, the Labour Code's provisions on this issue - in their unamended form - supplemented by case law, continues to apply.

In general, the Council approved the remaining points, including:

the doubling of the minimum redundancy compensation; the extension of deadlines;
the requirement to convene negotiations on the 35-hour week prior to any redundancy plan (the so-called `Michelin amendment� );

increased powers for works councils;

nine-month redeployment leave for redundant workers;

a contributions to the regeneration of closed sites by companies with a workforce of over 1,000.

The aspects of the social modernisation law concerning the accreditation of vocational skills and experience, precarious employment and combating `moral harassment� (bullying) were approved. However, the Council stressed that for cases of moral harassment heard before civil and industrial courts, plaintiffs will be required to present `detailed and concurring presumptive evidence� .

Controversy continues
If the various protests at the decision by the Constitutional Council do not lead to a review of the legislation by the National Assembly, the social modernisation law should come into force as soon as it has been promulgated or the enabling decrees have been published.

With the presidential election only some three months away, the controversy surrounding this legislation is framed by heightened political debate. The conservative opposition has labelled the Constitutional Council decision a repudiation of government policy. The Left on the other hand, criticised the `political� position taken by the Council's `learned members� , the vast majority of whom are claimed to be right-leaning. The Ecologist Party (Les Verts) and the Communists were the most scathing in their criticisms. In the opinion of Robert Hue, the Communist Party leader, `this decision sets a very serious precedent� and `incites industrial violence and disregard for workers� .

MEDEF expressed its `satisfaction� at the Constitutional Council decision. It pointed out that it was not surprised by the Council's decision, since the `government and the ruling coalition had indulged in developing provisions which were radically contrary to the interests of the country� . The employers' organisation let it be known that it would be `unstinting in its attempts to have all the other anti-employment provisions contained in the legislation (...) repealed� .