A DAM B EESE
Why are the French always on strike?
Francois Hollande, the president of the French Republic, is facing the most difficult time of his political career with strikes taking place within the transport sector, at refineries and oil depots. The supposed cause is the attempt of the French government to make the country’s labour laws more flexible. This is further complicated by the fact that the Socialist Hollande and his government have had to go up against the Unions who voted them into power. This French culture of striking has a historic and cultural background dating back to the reign of King Louis XVI and has given the French a reputation for aggressive protesting. Louis XVI spent excessively and that, combined with helping finance America’s fight in the War of Independence, left France in a substantial amount of debt. This resulted in taxes being imposed on France’s commoners, leading to a revolt against the monarchy and the establishment of the country’s first constitution. Therefore, politicians appeased the French people. Over many years the working classes continued to fight for worker’s rights and the communist party grew strong. Successive governments agreed to workers’ demands as massive strikes brought the country to a stand-still. The Matignon agreements were signed in 1936 and resulted in salaries being raised and workers being allowed to unionise. A student uprising in May 1968 lead to a general strike that bought the country to a halt. This resulted in an increase in the minimum wage and a shorter working week. Further strikes in 1984, 1995, and 2006 resulted in the government abandoning their initiatives. Thus, in the modern day, the popular view is that France has a rogue economy that differs greatly from other economies because their workers are constantly on strike and the business world is at the mercy of the large trade unions. This makes free enterprise very difficult. The reality is somewhat different because, although Standard & Poor’s downgraded France’s rating from AAA to AA+ in January 2012, it is still above average. However, it is widely acknowledged that the French economy is in the doldrums, and many organisations have urged France to loosen the rules laid down in the “Code du Travail” in order to decrease unemployment. This approach was very effective in Germany during the mid-2000s and unemployment there is now at just 4.5 %. In 2013 the French news-magazine Le Point found that the French work shorter hours than other major European economies, retire earlier, and take more holidays. The magazine concluded that the number of hours work per year per inhabitant in France is amongst the lowest of any developed economy; 11% lower than Germany, 22% lower than Scandinavia, and almost 40% less than South Korea. Previously, centre-right governments felt that the labour laws were too rigid but all have failed historically to take-on the Unions. As a consequence of this, there is a system where employees in France enjoy a high level of job protection and guaranteed salary levels. In large corporations this isn’t too much of a problem but small business employers may be reluctant to create jobs for fear of being unable to lay off the new employees without being penalised. Instead, they could offer temporary contracts or outsource abroad, effectively reducing job creation. When President Hollande was elected in 2014 he pledged to reduce unemployment. However, it is still rising and reached 10.8% at the end of 2015. Hollande appointed Emmanuel Macron as the economics minister and Manuel Valls as Prime Minister to solve the problem. They have attempted to inject flexibility into the labour market with Macron Law which is designed to free the French labour market from the rigour of laws then discourage employers from hiring workers thus bringing France more in line with those of other European countries. But, after protests from unions, the bill was made more modest. However, socialist rebels and unions rejected the softer version so Mr Valls had to push the bill through parliament without a vote which lead to the current round of strikes. So, although France is no stranger to union strikes, the last industrial action is unusual as it pits the left against the left.
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