Yonatan Reshef
School
of Business
University of Alberta
Edmonton, Alberta
T6G 2R6 CANADA
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World War I found the workers united in the single cause of defending a nation at war. After
World War I, the Law of March 1919 provided a statutory framework for collective bargaining. The
Confederation Francaise des Travailleurs Chretiens (CFTC) was founded in 1919, with a
close philosophical connection to the Catholic Church. The employers federation, the
Confederation Generale de la Production Francaise (CGPF) was also founded in 1919. In
1921, a split occurred within the CGT, with the CGTU breaking away and carrying with it a
stronger communist tie.
The Socialists were elected in 1936 (the Popular Front; 1936-38; first socialist government in history; the Prime Minister is Léon Blum) and major reforms were soon underway. In the wake of organized labour demonstrations and strikes, the Matignon Agreement of 1936 established a human resource framework including the 40-hour work week, a social safety system (i.e. paid holidays and pensions), and an industrial relations framework granting the rights to organize and bargain collectively and enjoy internal and local employee representation. The agreement, that became a law later that year, also established the extension procedure under which the Minister of Labor may make a collective agreement binding on all employers in a given industry, regardless of their membership of employers' associations.
During World War II. France split into two states. Vichy became the provisional
capital and the Petain government worked with the Nazis after the invasion of May 1940.
The new Nazi state was authoritarian, corporatist and discriminatory; the CGT and the CFTC
were both prohibited while the CCPF was dissolved. General Charles de Gaulle continued to
lead a fight with the allied forces, in resistance to the Nazis. Paris was freed in 1944
and the Vichy government members were either imprisoned or fled France. The Confederation
Generale des Cadres (CGC) was formed in 1944, representing the elite class of
white-collared workers. This was a moderate union, one which avoided mixing politics with
the function of the union. The central employers association, the Conseil National du
Patronat Francais (CNPF) was formed in 1945.
The situation left after the war required radical change to France's political,
economic and social structures. The 1946 Constitution recognized the right of all
individuals to protect their rights and interests by engaging in trade union activity and
by joining the union of their choice. In 1948, the Confederation Generale du Travail-Force
Ouvriere (CGT-FO) officially broke away from the CGT with a strong socialist philosophy,
and the Federation d'Education Nationale (FEN) was formed, representing teachers. In the
same year, two of the federations, the CGT-FO and the CFTC collaborate in order to obtain
a better wage-price relationship for French workers.
The Basic Law of 1950 established industry level negotiations, signed by the most
representative union, as the framework for collective bargaining. In 1964, the CFTC ended
its ties with the Catholic Church and formed the Confederation Francaise Democratique du
Travail (CFDT). 1968 saw a surge of demonstrations and strikes which began with student
protests against admission policies. Labour joined in and, in fact, took over the
protests, which caught the trade unions by surprise. The government was asked to assist in
restoring order which brought about the Grenelle Agreement. The essence of this agreement
was multi-industry bargaining, requiring endorsement by the individual plant.
In May 1981, the first Socialist president in the post-1945 era, Frnacois
Mitterrand, was
elected for a period of seven years. One immediate consequence was the 1982 Auroux (the
Minister of Labor at the time) Laws. The aim of these laws was primarily industrial
relations reformation to enhance the power of the trade union at the company level,
through the collective bargaining mechanism. Employee representation, through the
restoration of works committees, was also a key element of the laws. The CFDT was a major
proponent of the workers right of expression.
The Auroux laws embodied the new government's efforts to reform workplace industrial
relations and to provide employees with real "citizenship rights within the
firm." One of the key provisions was the imposition on employers of the obligation to
bargain annually with company-level unions on pay and working time.
The French collective bargaining system is now structured around the three levels of
multi-industry, industry, and company bargaining. At multi-industry level, agreements are
concluded between central employer and trade union organizations. The agreements are not
directly binding but set the framework within which industry and company bargaining can
take place. At industry level, there is a statutory obligation (under the Auroux laws) to
negotiate annually on minimum rates of pay, although no obligation to reach an agreement.
The parties at industry level are also obliged by statute to review job classification
systems every five years. At company level, employers are required to negotiate (although
not to conclude agreements) annually with union representatives on pay and working time
issues.
French management has until now been able to enforce its philosophy that the factory is
an extension of the family, and thus must remain non-egalitarian. The revolutionary
history of France is central to any attempt to identify the relationship between
management and labour. The paternal nature of the French patronat, or manager,
coupled with an underlying sense of continuous class warfare sets the stage for a
dichotomous existence between the two parties. French employers have traditionally been
hostile towards unions and union activities within organizations, and an egalitarian
spirit has fueled the labour movement. This results in a struggle to keep labour out of
management and any consequential decision-making. This prevailing attitude has gradually
changed in a small number of organizations since the mid-1980's, as those employers have
come to realize the weakening of union power.
It is estimated that there are presently 2.2 million union members in France, representing about 10.0 percent of the workforce. Due to the pluralistic and voluntary nature of unions, this estimate is difficult to make. Collective bargaining is the main task of labour unions and this negotiation is typically done, as a result of the Auroux Laws in 1982, at a local level, by the most representative union (since more than one union can be represented in the same workplace). The actual representative function of the unions is quite low today due to French legislation which effectively address conditions of employment and grievance processes. This works to weaken potential loyalty which an individual worker may have towards a particular union organization.
Unions also have a voice by way of the legislated workers right of expression (also as a result of the Auroux Laws) through a mixed system of representation. Union members are considered first for elected roles on various works committees. While the responsibilities of these committees revolves around specifics such as health and safety issues, voicing grievances, management of a social/cultural activities fund and collective bargaining, two of the committees are chaired by the head of the firm and none of them are involved in the organization's strategic or economic decision-making process.
Despite efforts to move towards a more quality-oriented relationship, the French managers continue to have a distinct supervisory role over the workers, based on a hierarchical organizational structure. Workers continue to operate with very little input into change. Scientific management techniques seem to be predominant, with a strong management class who "knows best". This continues to be reinforced even in the French educational process.
Recent Developments
End of 1990s - Early 2000s
The Ministry puts the number of agreements signed by mandated employees in 1997 at 620 (40 other agreements were signed by elected staff representatives - another mandating option). (Original article.)
In this context, employers and trade unions (with the exception of the CGT) signed a national agreement in October 1995, which covers all sectors of industry. It encouraged: the establishment of the system of calculating hours worked on an annual basis (instead of a weekly one); part-time work; and the use of time off in lieu if overtime is worked. The application of these measures was referred to negotiations at industry level, of which the first appraisal was to be carried out at the end of the second quarter of 1996. However, the results have been disappointing. Agreements were only reached in some sectors of industry, and their content has been generally judged as far from innovative.
Meanwhile, since November, 1995, at the initiative of some of its members, the National Assembly had been examining a bill to which the Government, after much hesitation, finally gave its approval. The law, called the Robien law (loi Robien) after its sponsor, the President of the National Assembly's Social Affairs Commission, came into effect on 11 June 1996.
The principle behind the Robien law is simple: the state gives financial concessions, in the shape of partial exemption from employers' social security contributions, if a large reduction in hours worked (combined with a reorganization of the working week), enables the same proportion of jobs to be created, or redundancies avoided. The law's application necessitates a dual form of negotiation: a collective agreement must be signed within the company, which then negotiates a convention with the State on this basis. The same option is available at sector level, but as yet, has seldom been put into practice.
In the case of a "hiring" agreement (under which jobs are created), a 10% reduction in the working week, combined with 10% more workers being recruited, gives the company the right to a 40% exemption from social security contributions in the first year, then a 30 % exemption for the next six years (or 50% and 40% respectively, if the reduction is 15%). The new levels of staffing must be maintained for at least two years. In the case of a "defensive" agreement (redundancies avoided) the exemptions are the same but are granted for only three years. They can be extended for up to seven years by a rider to the contract. (The original article)
The legislative timetable given for negotiations (2 years for business employing more than 20 people, 4 years for the rest) risks being used by employers to apply job flexibility and intensify the work routine, cutting out any positive effects of a reduction in the working week.
The legislation, popularly known as the first "Aubry law" (after the Minister of Labor Martine Aubry), has given a new emphasis to the "mandating" procedure in collective bargaining. This mechanism, which allows a trade union to appoint an employee to negotiate and sign agreements in companies with no union delegates, aims to meet the concerns of both unions and employers, by compensating for the weak and dispersed union representation within companies. While the extent of company bargaining with these mandated employees is still limited, the new working time law may well provide a boost, all the more so as most unions have made mandating part of their campaign to cut working hours. (Original article.)
The social modernization bill now introduces a series of more restrictive measures for companies planning redundancies, as follows.
In summary, 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, 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.
Henceforth, the Common Position's signatories want extra conditions to be
met so that a collective agreement may come into force. At sector level, the
agreement, regardless of the number of signatories, should only take effect
'to the extent that the majority of unions with representative status have
not availed of their right of opposition.' In relation to company-level
agreements, the document proposes that sector-level agreements lay down one
or other of the following two sets of rules on the validity of company
agreements:
2005
Reform of the 35-hour Week Law.
For some months, criticisms of the legislation establishing the 35-hour
working week (FR9806113F
and
FR0001137F), not only from the governing coalition in parliament but
also from employers’ associations, have become increasingly strident (FR0408108F).
In late 2004, deputies tabled a bill in parliament amending the basic law on
the issue. This bill, seen as a challenge to the 35-hour week, was initiated
in response to pressures from pro-free market actors, but does not alter
statutory working time. It addresses, among other points, a reform of
working time savings accounts, and creates a new form of 'optional working
time, accessible above and beyond the overtime quota' .
The Bill includes measures announced by Prime Minister Jean-Pierre Raffarin in December 2004 (FR0501101N). It provides for new options for using working time savings accounts (comptes épargne temps, CETs) for employees, the establishment of agreements on 'optional hours' that would allow an increase in overtime, and the application of an exemption scheme for small businesses. The annual overtime quota had already been raised by decree from 180 to 220 hours a year in late December 2004.
The bill provides that:
Solidarity Working Day. Through a law adopted on 30 June 2004, the government abolished one public holiday per year, replacing it with an extra working day called a 'national solidarity day' . The aim is to fund policies to assist the elderly and people with disabilities to attain independence (FR0412104F), and the move came in the wake of the shocked response to the 15,000 premature deaths caused by the summer 2003 heatwave, including many elderly people.
Officially established in May 2005 by the Prime Minister, the National Independent-Living Support Fund (Caisse nationale de solidarité pour l’autonomie, CNSA) will distribute extra funds, broken down as follows:
Apart from the fact that the establishment of the solidarity day has again extended working time just after the law overhauling the 35-hour week legislation was passed (FR0502109F), it has also raised the issue of the justice of this policy. Only employees are actually affected by this effort made in the name of national solidarity. Moreover, the issue of the necessary resources for the funding people’s independence is still a live one.
2007
May 6 - Nicola Sarkozy is elected president of France replacing President
Jacques Chirac.
Both belong to the Union for a Popular Movement. Sarkozy has said he is determined to force through a wave of
sweeping free-market reforms he believes are vital to boost
growth, increase wealth and cut unemployment.
His first moves are expected to be scrapping the 35-hour working week, cutting taxes and social charges on businesses, and axing large numbers of France's bloated civil service.
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