MEDEF holds extraordinary congress

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France's MEDEF employers' confederation held an extraordinary congress in January 2002, at which nine resolutions were passed, calling for major change in areas such as working time, industrial relations, training, social security and taxation. MEDEF's proposals are aimed at launching a debate with both trade unions and political parties in the run-up to major national elections in the first half of 2002.

The Movement of French Enterprises (Mouvement des entreprises de France, MEDEF) employers' confederation gathered together 2,000 business representatives in Lyons for an extraordinary congress on 15 January 2002. The congress marked the culmination of a nationwide campaign, entitled En avant l'entreprise, en avant la France ('Forward with enterprise, forward with France') launched by MEDEF on 25 October 2001, which had already involved seven regional fora. Recent Constitutional Council (Conseil constitutionnel) rulings on the ways of funding the 35-hour working week and on the redundancy provisions of the new 'social modernisation' law (FR0201102F) gave greater impetus to the congress.

The MEDEF chair, Ernest-Antoine Seillière, invoked the right of business leaders to intervene in political debate, urging the congress to participate in the public and political debate. The adoption of nine 'resolutions' by a large majority (between 87% and 97% of delegates), provided a formal framework for MEDEF's proposals. These resolutions - targeted at politicians in the run up to the presidential and general elections slated for the second quarter of 2002 - are as follows:

1. restore the genuine value of work. This resolution demands the major reform or repeal of the 'Aubry law' on the 35-hour working week (FR0001137F). MEDEF considers that all French citizens should be free to work as much as they want under freely-negotiated employment contracts;

2. develop access to vocational training. MEDEF contends that all young people should have access to schemes combining work and training, regardless of their level of initial training, and that all employees should be able to set up a training savings account (FR0111123F);

3. implement a modern and euro-compatible tax system. MEDEF wants to see direct income and corporate taxes brought down to the levels of France's major European competitors. It is also advocating relief on wealth and property taxes and the elimination of some business and payroll taxes. Lastly, MEDEF is also calling for the scrapping of all value added tax as a way of 'maintaining innovation';

4. reposition business at the heart of society, by creating closer ties between schools, universities and companies.

5. create a new legal and constitutional framework to renew social dialogue. For over two years now, MEDEF has - through the promotion a new 'social constitution' (FR9912122F) – been advocating the redefinition of the respective roles of collective agreements and employment contracts on one side, and of legislation and regulations on the other. It contends that social dialogue is most effective at company level. MEDEF is suggesting that social dialogue should be encouraged in small and medium-sized companies, and also calling for 'stronger, more representative and more responsible trade union partners';

6. create a genuine partnership between companies and the government. In the opinion of MEDEF, this can be achieved only if business leaders are involved in decisions affecting them and if governments of all political stripe commit themselves to 'parliamentary term-specific contracts' with business;

7. significantly modernise the state. MEDEF is advocating a less 'spendthrift' state, with public spending being brought down to the European Union average. The state should also be less centralised, more efficient and more open to other stakeholders in society;

8. guarantee future individual and collective security. This resolution draws on previous MEDEF social security and pension-related proposals (FR0201103F); and

9. publicise MEDEF proposals in order to persuade elected officials to implement them.

Several demonstrations were held in Paris and in major provincial cities to protest against MEDEF's proposals and actions. The largest was staged in Lyons, where a major participant was the General Confederation of Labour (Confédération générale du travail, CGT), whose delegation was led by the confederation's national general secretary, Bernard Thibault. Members of other trade unions also took part, such as the Unitary Trade Union Federation (Fédération syndicale unitaire, FSU) teachers' organisation, SUD aérien (the aeronautics workers' union union affiliated to Solidaire, Unitaire, Démocratique, SUD) and the Rhône area transport workers' union affiliated to the French Democratic Confederation of Labour (Confédération française démocratique du travail, CFDT). The president of the French Communist Party (Parti Communiste Français) and presidential candidate, Robert Hue, supported the demonstration.

The French Confederation of Professional and Managerial Staff-General Confederation of Professional and Managerial Staff (Confédération française de l'encadrement-Confédération générale des cadres, CFE-CGC) and the General Confederation of Labour-Force ouvrière (Confédération générale du travail-Force ouvrière, CGT-FO) condemned these demonstrations, deeming them to be overly political in nature. In a press release, CGT-FO also spoke out against what it saw as MEDEF's attempt to transform itself into the 'employers' party'.

The leader of the French Democratic Confederation of Labour (Confédération française démocratique du travail, CFDT), Nicole Notat, stated that 'she was very pleased that all economic, trade union and association stakeholders could have an input', but overall, she did not share MEDEF's opinions, especially in terms of its social security-related proposals.

A meeting of an Anti-MEDEF Coalition (Etats généraux contre le MEDEF) in Paris on 15 January 2002, brought together elected officials and political leaders (Communists, Ecologists and Socialists), trade union leaders, and unemployed groups and associations, such as the Fondation Copernic and ATTAC.

In its response to MEDEF's proposals, although the Socialist Party (Parti socialiste) recognised the 'decisive' role played by businesses, it officially challenged MEDEF's right to 'supplant the government', and stated the belief that MEDEF 'has publicly stated what the right has been mulling over behind closed doors'. However, Jean-François Copé, the assistant secretary general of the Movement for the Republic (Rassemblement pour la République, RPR) - the Gaullist party founded by President Jacques Chirac - reasserted 'the complete separation of the RPR and MEDEF'. Nevertheless, he did acknowledge that some common ground between the two organisations did exist. Similarly, the centrist Union for French Democracy (Union pour la Démocratie Française, UDF) contends that MEDEF has borrowed some of its proposals, but stopped short of supporting all nine resolutions. Overall, the Liberal Democracy (Démocratie Libérale, LD) party supported MEDEF's proposals and was prompted to propose structural reforms of its own.