Re-Blogged From Worldview.Stratfor.com
The French government has the backing to potentially pass a broad labor reform package. During a press conference Aug. 31, French officials presented details on labor reform, including five “ordinances” (legislative acts similar to presidential decrees). French President Emmanuel Macron promised during his campaign to restore France’s reputation as a European power at the same level as Germany. These pro-business measures aim to increase France’s competitiveness and to help the second-largest EU economy.
The labor reform initiative proposes to give more flexibility to enterprises and aims to reduce unemployment from 9.4 percent to 7 percent by the end of the current legislature and presidency in 2022. The proposed reform includes changes to workers’ representation and contracts. Negotiation of salaries will take place at the enterprise level, instead of the sector level. French businesses would also be able to fire workers based on their economic impact domestically rather than internationally.