France’s New Labor Laws: ‘Flexibility, and No Security’
“This is a means for companies to get rid of low-cost employees with seniority,
and therefore considered too highly paid, while at the same time recruiting precarious and disposable workers,” Philippe Martinez, the secretary general of the General Confederation of Labor, said in a statement while the negotiations at PSA were being carried out.
The new measures may also have the effect of pitting labor groups against one another — a development that could work in Mr. Macron’s favor.
The changes to the country’s voluminous labor code are part of a broad push by President Emmanuel Macron to revive growth and steer France toward a Scandinavian-style economic model known as “flexible security.”
But the initial imbalance between employers’ rights and workers’ protections means the economic picture could get worse before it gets better.
His union hailed last week’s agreement at PSA, saying it was “not a danger for employees,” but “an opportunity for those who want it.”
Under that deal, the older workers are being offered generous terms to take the buyouts.
Pierre-Olivier Salmon, the head of corporate information at PSA Group, said the carmaker is looking to bring in a new generation of workers with the digital
and programming skills needed to develop projects like electric cars and future technology for the automotive industry.