Interministerial taskforce on restructuring starts work

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In late 2002 and early 2003, the French government set out the detailed remit for a new interministerial taskforce on company restructuring. The role of the new body is to coordinate public initiatives to offset the social impact of restructuring and its repercussions on employees. The taskforce is to implement a long-term policy of planning for economic change and alleviating its impact.

At a time of increasingly frequent announcements of job losses, redundancy plans (plans sociaux) and bankruptcies, the new conservative government which came to office in 2002 suspended parts of the previous Socialist-led government's 'social modernisation law' (FR0201102F) - mainly dealing with redundancy procedures, including consultation with employee representatives on the economic and social aspects of redundancy plans - for a period of 18 months. Then, on 17 October 2002, the new government set up an exploratory taskforce to monitor problems related to company restructuring (FR0211103N).

The role of this interministerial body is to coordinate official initiatives to offset the social impact of corporate restructuring and its repercussions on employees. The body, which is led by the former chief executive of the Post Office (La Poste), Claude Viet, its to take a long-term approach. According to the Minister for Social Affairs, Labour and Solidarity, François Fillon: 'Claude Viet’s role is to ensure that the various state bodies work together. This is neither very high profile nor spectacular but it is extremely necessary.' In answer to questions about the resources available to the new body, the Minister focused on human input and more particularly, on dialogue with trade unions. The body’s remit, rather vague at first, was spelled out in mid-December 2002 by the Interministerial Regional Development Committee (Comité Interministériel d’aménagement et de développement du territoire, CIADT),. Further detail was added in an initial report tabled by Mr Viet in January 2003.

Government guidelines for taskforce

As noted above, the remit of new interministerial taskforce on restructuring was officially defined at a meeting of the CIADT on 13 December 2002. The following areas of activity were identified.

Developing a coordination mechanism

A strategic intelligence network administered by the Ministries responsible for the economy, finance, industry and employment is to be set up at national level to monitor changes in various industries and regions. In addition to providing the government with information on major national and international trends, this initiative is to be the driving force behind a network of regional 'observatories'.

With a view to coordinating action, the various administrations of central government are to develop guidelines for intervention and advice, and for circulating information so as to spread best practice in cases of restructuring and make the most of local initiatives.

A training and awareness programme focusing on the challenges of economic change is to be offered to all the central and local administrations involved. The consultation process with the social partners is to be strengthened within existing fora.

Developing pre-emptive initiatives

In a move to ensure that employees are able to upgrade and acquire new skills and qualifications, the Ministries responsible for employment and industry are to provide support to those industries undergoing restructuring by encouraging the social partners, company networks and local stakeholders to play a role in developing employees' vocational skills. Financial assistance for forward-planning management of labour and employment may be made available to small and medium-sized businesses in priority sectors as a way of helping employees adapt to new technologies and new forms of work organisation, as well as promoting access to training and the acquisition of portable skills needed for greater employment mobility.

In an attempt to boost innovation and technological capacity among companies, the Ministry of Industry is to promote the development of planning for change. Support will be provided for developing and sharing high-technology facilities. Industry innovation networks are planned for sectors regarded as vulnerable. These include the textile and garment industries, together with mechanical engineering and plastics.

Boosting social accompanying measures

The goal is to change not only the redeployment process for redundant workers, but also the very way redundancy plans are negotiated. Greater emphasis is to be placed on consultation between the social partners. Another important area is the consolidation of the expertise of the entire public employment service as it relates to providing assistance during corporate restructuring. Particular emphasis is being placed on tapping into and sharing practices implemented at company, sector or regional level. A 'how-to' guide for public employment services is to be developed on this subject.

Long-term approach to pre-empt problem situations

Mr Viet’s report published in January 2003 fleshed out these major themes. It provides details on the nature of his proposed approach as well as on the spirit of initiatives to be developed by the taskforce. Faced with an increase in redundancy plans and total or partial plant closures, he is advocating 'a shared culture of change'.

First, the report takes stock of the restructuring process in France and of the most effective way of providing assistance to those affected. It argues that economic change is most often dealt with in the heat of the moment and while in the grip of an obvious crisis, and so is difficult to handle. In addition, regulations take precedence over negotiations between the social partners, thus tending to remove any potential for flexibility from the process. Those affected by restructuring are not treated equally and employee redeployment remains inadequate. As a result, 'individual traumas often come together in collective rejection'. Indeed, company restructuring is most often dealt with as a totally unforeseen event. To rectify this state of affairs, there has to be a shift away from crisis management to planning for change.

An approach of this kind means creating a positive rather than a defensive attitude among those involved, extending the spirit of solidarity and giving pride of place to negotiation. If ways of making jobs safe are to be found, vocational training has to be boosted and employees must be taught that employment is not static and that life-long training is essential.

Achieving this requires greater public intervention, with both concentration on ailing areas and sectors and decentralisation in terms of implementation. More effective anticipation of economic upheaval requires the development of targeted monitoring tools. In addition, all relevant bodies must coordinate assistance initiatives for areas where restructuring is deemed inevitable.

On the issue of action at company level, it is suggested that the practical ways in which companies with ongoing restructuring plans could contribute to local job creation merit in-depth examination. In terms of assistance for companies, the concept of shifting away from a subsidy-based approach to one based on initiatives underpinned by a system of loans has been put forward.

In order to put these proposals into practice, the interministerial taskforce led by Mr Viet will, in his view, have to be 'a lean organisation' operating as a 'group with a mission' and with communication as its main tool. A steering committee is set to be added to the existing three, multiskilled members.

Commentary

For the time being, it is difficult to see what the tangible impact of the restructuring 'taskforce' will be. It has an unusually wide remit, and claims to be focused on developing long-term policy and assisting coordination between various state bodies. This uncertainty undoubtedly explains the current lack of trade union reaction, even though, over the past few months, unions have all been increasingly vocal on the need for an active policy to address redundancies and company restructuring. (Marie Raveyre, IRES)