PARIS: The French parliament passed a landmark reform of the country’s labour code yesterday, part of President Francois Hollande’s efforts to convince European partners he is determined to revamp the euro zone’s second largest economy.
Negotiated with employers and three trade unions in January, the law makes it easier for firms to make layoffs or reduce pay and working hours in economic downturns but raises the cost of employing staff on widely-used very short-term contracts.
Few expect an instant improvement in the competitiveness of French exporters who have seen sales undercut by cheaper foreign rivals over the past two decades, but many companies say the measures will help them better manage costs.
The reform passed through the Upper House with 168 votes for and 3 against. Left-wing lawmakers had sought to stall the legislation and backed street protests by trade unions opposed to the accord, including the hardline CGT.
“This is one of those moments in which a great step forward has been made,” said Labour Minister Michel Sapin.
Hollande is struggling to fulfill his promise to reverse the rise in unemployment, now at 10.6 percent, by the end of the year. March jobless claims hit an all-time record 3.225 million.
REUTERS
