France is no stranger to strikes. But weeks-long unrest by left-leaning labour unions against the policies of a Socialist government is unprecedented. The unions that began the strike on May 17 are demanding that the government abandon a bill to reform France’s strict labour laws. If the bill is passed in Parliament or taken to law through a decree, employers will be allowed to negotiate the 35-hour maximum working week and severance payments if they need to downsize the workforce in times of financial difficulty. The government says overhauling the labour laws is necessary for job creation, and that it is part of a larger reform push to spur economic growth. Growth is stalled at around 1 per cent. The unemployment rate hovers at more than 10 per cent, twice that of Germany. Youth unemployment is stubbornly high at 25 per cent. François Hollande, one of the most unpopular presidents in modern France, has to jump-start reforms to spur growth before next year’s presidential elections.
But the question is whether Mr. Hollande can accomplish this while antagonising the unions that helped him come to power four years ago. Before the 2012 elections, he had presented himself as an ally of the working population and vowed to squeeze the wealthy to protect France’s egalitarianism. But once in power, Mr. Hollande turned business-friendly, and the constituency that elected him felt betrayed. The government appears determined to move ahead with the reform plan despite the strike, which has already affected fuel distribution in parts of France. However, over the past two months the unions have demonstrated that they have mass support for the protests. Since March 31, tens of thousands of French citizens have taken to the streets against the government. Also, a section of the ruling Socialist Party is opposed to the government’s economic policies. Unilaterally proceeding with the legislation could deepen rifts within the party and trigger more public unrest. These protests come at a particularly delicate time for France. The country is already under a state of emergency. After last November’s Paris attacks, it remains on heightened alert. The European Championship football tournament began in Paris on Friday, and its successful conduct needs the help of France’s workers and security personnel. In such a scenario, the last thing the country needs is an open showdown between workers and the government. In the end, there may be no option available to either but a compromise. The government must realise the limits of high-handedness and unilateralism, just as the unions need to face up to the reality that the French economy, fired by government and European Union subsidies and a publicly funded welfare system, cannot hold amid stalled growth.
