French employers, unions split over labour reform bid

Reuters Middle East

PARIS, Jan 10 (Reuters) - French employers will consider

some concessions in labour reform talks on Thursday but remain

opposed to a key union demand to raise welfare charges on

short-term contracts, their chief said as negotiations entered a

final stretch.

President Francois Hollande has called on business leaders

and worker groups to strike a "historic deal" to overhaul

France's labour market, helping firms to adjust their wage

burden in a downturn and giving workers more job security.

His Socialist government is pressing the parties to conclude

a deal by Jan. 15 as talks restart. A previous round broke up

without an accord, with both sides accusing each other of making

unacceptable demands.

Hollande will introduce a draft law in the first quarter of

2013 regardless of whether a deal is struck. But without support

from unions and employers, any law may face street protests and

unions may push left-wing lawmakers to water it down.

"Tonight, we can reach a deal that puts France on par with

the highest international standards in terms of flexi-security,"

Laurence Parisot, head of the Medef employers union, said on

Europe 1 radio. "Anything less, there will be no deal."

Flexi-security refers to a cooperative approach to labour

relations widely used in northern Europe in which employees

accept a degree of flexibility in working arrangements in return

for employer commitments on job security.

France wants to emulate that to address high unemployment

and to eradicate the split in its jobs market between unflexible

permanent contracts and short-term contracts increasingly used

by employers but which offer workers little or no job security.

Parisot said the Medef and its negotiating partner, the

CGPME small- and medium-sized business group, would consider

giving unions a voice and votes on company boards, and favoured

making complementary health benefits automatic for workers.

Unions say they could accept in-house deals allowing firms

to temporarily cut work-hours during downturns, similar to

arrangements in Germany. They may also accept the creation of

new long-term job contracts with less iron-clad terms.

However, union demands to impose higher welfare charges on

short-term contracts remained a sticking point. Parisot said

Medef was not prepared to extend talks beyond this week.

Bernard Thibault, head of the hardline CGT union, said his

group would not sign any deal in favour of de-regulation.

"What I can tell you is there is no way the CGT will approve

the spirit of proposals from management's camp," he said.

(Reporting By Nicholas Vinocur and Jean-Baptiste Vey; editing

by Mark John)

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