Change in the employers' camp - CNPF becomes MEDEF

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The National Council of French Employers (CNPF) decided on a new policy direction at its national general assembly in October 1998. It did this firstly by changing its name to the Movement of French Enterprises (MEDEF) and secondly by setting out new demands for a change in society, based on greater flexibility in employment legislation and a reform of the state.

Following the failure of the tripartite conference on employment held on 10 October 1997 (FR9710169F) and the subsequent resignation of the president of the National Council of French Employers (Conseil national du patronat français, CNPF), Jean Gandois, the new president elected on 16 December 1997, Ernest-Antoine Sellière, committed himself to rebuilding a "new CNPF" with the help of "business leaders and industry on the ground" (FR9712188N). Less than a year later, on 27 October 1998, the restructuring process was launched at the organisation's general assembly in Strasbourg, which had been preceded by months of debate and seven regional forums.

The revision of CNPF's statutes and internal rules was passed by a huge majority (403 of the 418 who voted) of delegates at the October meeting. CNPF has been renamed as the Movement of French Enterprises (Mouvement des entreprises de France, MEDEF). The change in name was seen as necessary to indicate the the employers' organisation's desire to update itself. As MEDEF's president put it, the term "patron" ("boss/employer") was a throwback to the past, whereas the new title is more in line with the new role that the organisation envisages.

The new organisation and its new statutes

CNPF has always played the role of an umbrella group for all companies, large and small alike. Companies became members of the intersectoral employers' association through joining sector-level federations, only subsequently being grouped in territorial employers' bodies ("unions") at local, departmental and regional levels. The employers' confederation, which has often been accused of representing only the "Paris establishment," has therefore now modified its structures to give more relative influence to the territorial network.

The number of members of the executive board will increase from 36 to 45. The number of representatives from the sectoral federations remains unchanged at 22, while the territorial unions will have four extra seats, giving them 12 votes on the board. The number of "qualified individuals" nominated by the president and elected by the general assembly will increase from five to 10. In an attempt to stress the strengthening of ties with companies, the new statutes stipulate that at least three-quarters of the executive board must be serving company heads.

The new internal rules introduce an innovation to the old CNPF system: companies will now be able to become members of MEDEF directly without first having to join sectoral federations. Mr Seillière stated that "our territorial network, bolstered by direct company membership, will now play a major role in our decision-making bodies."

MEDEF wants to play a different role from the one assumed by CNPF, by reducing its influence in negotiations. Article 1 of its statutes states that the role of the organisation is to "pursue all studies and actions to promote the common good of companies, whatever their legal status or size." The role of the organisation in the industrial relations field has been significantly reduced. The new statutes state that, outside the area of pay, MEDEF can be mandated exceptionally to negotiate and sign agreements. Such mandates will have to be given by the executive board. If any of the sectors represented on the board opposes, a two-thirds majority is required to adopt the mandate. Therefore national intersectoral negotiations, which were judged "too general and too close to political decision-making", should in future be the exception to the rule. MEDEF believes that social dialogue should for the most part take place at company level, or! at sector level if companies so desire. At company level. such negotiations should involve elected worker representatives in cases where union presence is weak and the process of mandating employees to bargain on behalf of unions (FR9807123F) is "inappropriate".

Promoting the entrepreneurial spirit

MEDEF's stated role is "to promote an entrepreneurial spirit by reiterating the messages, aspirations and ambitions of business people on the ground." The employers' organisation advocates the implementation of profit-sharing agreements across the board, the extension of employee share-ownership and stock option programmes and the setting up of pension funds. The organisation believes that employees should be involved more in corporate development and performance so that the general objective of increasing profits can be better shared.

Rethinking the joint management principle

The social partners are to be consulted by MEDEF on the redefinition of: those areas of social protection that should come under government jurisdiction; those that must remain in the hands of trade unions and employers; and those that should be turned over to the private sector. New areas of action will be explored, in particular, training and education - characterised as "the real joint management of the future" - to make them more business-oriented. Mr Seillière has further proposed increasing the number of places on programmes combining work and training from 400,000 to 500,000 per year.

Reforming the state

A reform of the state is presented as "an absolute priority," whereby it would refocus on its essential responsibilities, cease any interference in the private sector and eliminate the budget deficit by reducing public spending. The French state, "which is competing with other countries in terms of prices and quality", should undergo a systematic evaluation of costs. Furthermore, one out of the seven levels of government should be eliminated.

Cuts in contributions

Mr Seillières wants to see a new scheme for long-term unemployed people, whereby companies would employ them and receive - over a three-year period - all or part of their unemployment benefits, while paying a top-up amount to bring their pay to the equivalent of the minimum wage. The MEDEF president also wishes to see the the first FRF 5,000 of all monthly pay exempted from social security contributions, in order to promote employment among the least qualified workers. As a measure aimed at assisting young people, aged 25 and under, to secure their first jobs, Mr Seillière wishes to see the setting up of a programme with an FRF 100 billion endowment from money saved from health insurance schemes. This initiative would also be financed by axing - from January 1999 - certain employment assistance benefits.

Commentary

For the first time since the Liberation, France's main employers' organisation has undertaken major reform. The break with the intersectoral level - if it is actually implemented - will severely shake up the industrial relations system, since MEDEF is the main employers' organisation, without which national negotiations could not take place.

This move is the confirmation of the adoption of more openly liberal policies by French employers, which could encourage lobbying practices at a national level and could also see very different practices being adopted from company to company, fuelling competition and economic and social "dumping".

The forthcoming period, which will see a more important role for sectors in the negotiations on introducing the the 35-hour week (FR9806113F), will indicate whether the new policies chosen on 27 October can be applied in their present "pure" form or whether they will be amended by the sectoral federations, who are still predominant in the new employers' organisation. (Alexandre Bilous, IRES)