Intersectoral negotiations between the French social partners on social measures to accompany company restructuring and redundancies failed in September 2004, when the MEDEF employers' confederation walked out. The government is now planning legislation in this area.
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Intersectoral negotiations between the French social partners on social measures to accompany company restructuring and redundancies failed in September 2004, when the MEDEF employers' confederation walked out. The government is now planning legislation in this area.
Intersectoral negotiations with the social partners on the social measures to be put in place by companies undergoing restructuring, launched by the government in March 2003 (FR0311106F), broke down on 8 September 2004. After 11 meetings, trade unions and employers’ associations had failed to find common ground for a deal. The government had recently given the social partners until 15 October 2004 to reach agreement. The immediate reaction to this ultimatum by the Movement of French Enterprises (Mouvement des entreprises de France, MEDEF), the main employers' confederation, was to walk out of the talks. It is now up to the government to decide on the issue since there is little chance of the negotiation process being revived.
The consultation process was designed as a precursor to formal amendments to the 'social modernisation' law introduced by the previous Socialist-led government in 2002 (FR0201102F). This legislation contained an important section covering the rules for collective redundancies and the social measures to be put in place by companies undergoing restructuring. The current conservative government has suspended until January 2005 (FR0407101N) the application of these provisions, which have been severely criticised by both employers' representatives advocating a relaxation of redundancy regulations, and trade unions calling for enhanced protection for employees, especially those working in small and medium-sized companies.
As a result of the breakdown of talks, the government has set itself the target of tabling legislation within three months. On this basis, the Junior Minister for Labour Relations, Gérard Larché, is exploring several approaches. The essential aim is to give companies more freedom, while encouraging foresight and forward planning in the fields of restructuring and personnel requirements. This should result in the generalised use of company-level 'method agreements' (accords de méthode) - a mechanism introduced in January 2003 (by the 'Fillon law') that lays down collectively agreed terms and conditions governing redundancies, including specific requirements on the information and consultation of employee representatives over redundancy plans (FR0311110T). It is proposed that the legislative rules in this area would apply only in the absence of a method agreement between an employer and trade unions that together obtained a majority of votes in the latest workplace elections at the company. The government is also striving to reduce the disparity in redundancy payments between the employees of large companies and those working in smaller firms.
Method agreements, which were introduced on an experimental basis by the January 2003 law, have already been introduced in over 100 companies (eg FR0307101N) . Making them universal would, in effect, strengthen the negotiation process over restructuring at company level.
Eurofound recommends citing this publication in the following way.
Eurofound (2004), Legislation planned after restructuring talks fail, article.
