Tuesday, 21 June 2016

France, its companies and its trade unions

The unions are still putting the French government under pressure and when I say unions, I’m referring mainly to the Confédération Générale du Travail (CGT). The CGT wants to hold a full-blooded march in Paris this Thursday. The authorities say that given the current state of emergency they will only allow an assembly and not a march of protestors. The CGT rejects this idea, so there is stalemate. Given that all public demonstrations attract ultras, what the French call casseurs, they are high-risk events. A nationally known childrens’ hospital was damaged by ultras last week, to public outcry, yet given the terrorist threat and the football crowd control, the police are stretched to the limit and still the government does not dare forbid outright the CGT’s march with the risk that they might have to prosecute the organisers and impose fines or imprisonment as laid down by law.

The French public are greatly inconvenienced but there is still this feeling that the CGT has a right to strike, that’s the way things are. They forget that the union represents a small minority, is defending the privileges of a few and does not have the right to stop others from working.

The French are still very much ambivalent about trade unions and the companies they work for. There is still a very strong them and us culture. The patrons (bosses) are still seen as exploitative and the lines of cleavage are everywhere. Who will protect the worker against the patron? Yes, there are bosses who exploit workers, but certainly not all of them do. Yet the French give this impression that a patron is by definition an exploiter of employees. This belief has been underpinned by the Code du Travail, the code of labour law which exists to protect the employee against the employer’s excesses and is very often an administrative nightmare for the employer. The bigger the company gets, the more time and money it has to devote to making sure it is not infringing any of its articles of law. The number of employees determines the level of complexity: 10, 20 and 50 being critical. For example, if a company employs 11 people, it has to organise elections for representatives of the workforce (délégués du personnel); if it employs 51 people it must set up a works council (comité d'entreprise). These are significant additional changes to the workload and responsibilities of the owner or manager, to such a degree that the owner of a small company will often refuse to employ that eleventh person. This is a considerable obstacle to national growth and one of the reasons why French unemployment figures have been above 10% for the last 35 years or so.

It often seems as if salaried employees don’t see the relationship between their company, their customers and their monthly payslip. The company owes them employment and a living and these rights are enshrined in law, everything the patron does has to be measured against the Code du Travail and if somebody spots that something is not being done by the book, there may well be an outcry. This does not make for company loyalty. The owner often feels alone, without support. The workforce forgets that the patron who started the company and created employment probably had to get a bank loan or re-mortgage his home to do it; the element of risk-taking is often unknown or forgotten.

Because of this, it often seems that doing business in France is extremely difficult, but let’s not forget that France manages with this system and so do many foreign companies which set up businesses here. This doesn’t mean that things would not be better if this legal strangle-hold were not eased. This strangle-hold is partly applied by the unions. What would happen, I wonder, if the trade unions had to function within the constraints of their own finances, that is that they were responsible for their own income, with no subsidies from public funds? I haven’t heard the government suggest that, or perhaps I missed it.


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