MEDEF makes proposals for modernisation of Labour Code

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In March 2004, France's MEDEF employers' confederation published 44 proposals for modernising the Labour Code, covering matters such as employment contracts, wages, working time and employee representative bodies. These proposals have been fiercely criticised by the trade unions.

On 17 March 2004, the Movement of French Enterprises (Mouvement des entreprises de France, MEDEF), the country’s main employers’ confederation, published a report on what it views as the necessary reform of the Labour Code, entitled 'Modernising the Labour Code. MEDEF’s 44 proposals' (Moderniser le Code du Travail. Les 44 propositions du MEDEF).

This document is a response to a January 2004 report, entitled 'For a more effective Labour Code' (Pour un code du travail plus efficace), by Michel de Virville, commissioned by the Minister for Social Affairs, Labour and Solidarity (FR0402108F and FR0403104F), and indicates that the MEDEF broadly backs the latter’s proposals. Moreover, in an appendix, the MEDEF document provides a summary table of the various proposals contained in the Virville report, stating in each case whether or not MEDEF endorses it, and providing observations and comments. Its new document aims to give MEDEF an opportunity to stake its claims aimed at making sure 'the Labour Code no longer constitutes an obstacle to business competitiveness and job creation', at a moment when the government is carrying out a round of consultation with a view to drafting a law on 'mobilisation on employment' (mobilisation sur l'emploi) for presentation in spring 2004, and just before major regional elections.

The employers’ proposals relate to four areas:

• employment contracts. MEDEF appears to want to treat the new 'assignment contract' (contrat de mission) - which would enable employees to be recruited for the duration of a particular project (FR0402108F) - as floated in the Virville report, more or less as an indefinite contract. MEDEF also wants to open up the option of using fixed-term contracts even for jobs linked to the permanent activity of the firm. It is also suggesting the withdrawal of the recent provisions introduced into the Labour Code on 'moral harassment', or bullying (FR0105152N and FR0201102F), and the amendment of the current provisions protecting pregnant employees, other protected workers and workers on fixed-term contracts against dismissal on the grounds of physical unfitness for work;

• pay. MEDEF is calling for the 'annualisation' of the national minimum wage (salaire minimum interprofessionnel de croissance, SMIC) (FR0208102F), and for increases in the minimum wage to be decided upon by an independent commission, based on the productivity gains achieved by the least qualified workers;

• working time. MEDEF is proposing that French law should incorporate only the thresholds set out in the 1993 EU working time Directive (93/104/EC) (EU0402203F) and that, apart from that, issues relating to working time - such as when overtime starts, how much of it there should be and the rate at which it is paid - should be referred to collective bargaining; and

• employee representative institutions. MEDEF is promoting the idea of merging the various current workplace representative structures (FR0309102T) into a single 'social dialogue committee' (comité de dialogue social), elected for a four-year mandate and chaired by the company's chief executive. MEDEF also suggests allowing employers to withhold particular information from staff representatives if there is a risk of hampering the operation of the company, and reducing the quota of time off for representatives in proportion to the reduction of statutory working time.

The trade unions have unanimously criticised MEDEF’s latest proposals for reform of the Labour Code. The French Democratic Confederation of Labour (Confédération française démocratique du travail, CFDT) sees the document as unnecessarily raising the stakes, while the French Christian Workers’ Confederation (Confédération française des travailleurs chrétiens, CFTC) regards it as a scathing criticism. The General Confederation of Labour (Confédération générale du travail, CGT), feels that the report is tantamount to MEDEF 'declaring war on the workforce'. The General Confederation of Labour-Force Ouvrière (Confédération générale du travail-Force Ouvrière, CGT-FO), considers that one word sums up the MEDEF report -'provocation'. 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), however, feels that the report is a non-event, as it is principally comprised of proposals regularly floated by MEDEF. The National Federation of Independent Unions (Union nationale des syndicats autonomes, UNSA) calls the document 'loudmouth posturing', and sees it as a move by MEDEF to block all genuine discussion with the unions.