Yahoo News Emmanuel Macron takes crucial labour reforms to union leaders as French businesses regain optimism
French president Emmanuel Macron has presented to unions his plans for landmark labour reforms, a flash point issue that sparked violent protests last year, amid signs the economy is finally gaining traction.
During his electoral campaign, Mr Macron, 39, made loosening labour market regulations a top priority, saying he would seek parliament's approval over the summer for powers to push through legislation by means of executive decree.
The Europhile centrist wants to make hiring and firing easier and to move France's collective bargaining on wages and working time from the industry to the company level, as well as placing a cap on severance packages awarded by industrial tribunals.
Unions and the Left have expressed concerns the changes could weaken workers protections.
The previous Socialist president Francois Hollande's timid attempts at labour reform led to blockages and mass street protests last year, many of which turned violent, resulting in several measures being watered down.
Despite this, they caused deep rifts within the Socialist Party, prompting the government to bypass parliament to ram through the law. In this case, Mr Macron wants to use a less extreme form of decree that will require parliamentary approval at the start and end of the process.
Analysts say the success of his five-year presidential term could stem from his ability to keep on track with labour reforms, which could largely hinge on whether he wins a parliamentary majority next month.
Bosses unions are keen to press on with the reforms as soon as possible.
"The labour market reform must be tackled quickly. It's essential to be quick on this major French problem," Pierre Gattaz, the head of the Medef group of employers, said, adding that speed was essential to give confidence to investors.
Optimism among French companies has shown signs of growing since Mr Macron's election on May 7.
The French private sector was shown to have grown at the fastest pace in six years in May, a key survey suggested yesterday (Tues), with companies mentioning Mr Macron's election as a reason for optimism. That coincided with a separate survey from the official Insee statistics office which showed morale in the industrial sector at its highest level since June 2011.
But the head of France's biggest moderate trade union warned Mr Macron against trying to rush through the reforms.
"I asked him not to do it hurriedly, to do it without rushing, that the idea should not be to wrap everything up by the end of summer, end of August," said CFDT leader Laurent Berger.
The more militant CGT union appeared relieved that Mr Macron had promised more time.
"It seems to me that the short time frame that was planned is not as short as I had understood," said CGT leader Philippe Martinez.
But the Elysée denied the time frame had been discussed, saying this was a matter for his prime minister, Right-winger Edouard Philippe and labour minister Muriel Penicaud.
Christophe Castaner, the government spokesman, warned unions against seeking to block reforms that Mr Macron had clearly outlined during his electoral campaign, unlike his predecessor.
He said: "You don't have the right to impede France when you don't agree with such and such a measure, especially when it was at the heart of Emmanuel Macron's presidential agenda."
Mr Macron's aides have made it clear they want the law passed as early as July so it can come into force this autumn.
