When there is unemployment the classic reason is that there is no demand and therefore there are no orders from customers. Alternatively, the reason could be competition ; the cost of the goods produced are too expensive here but cheaper elsewhere !
When Martine Aubry introduced the 35 hour working week in February 2000, this became the law and has since been vigorously defended by Labour Unions ! It did not reduce unemployment as expected, but it increased the hourly cost of labour !
Is this what France needs now, during this general economic slump ?
This is a good strategy when order books are strong and healthy. BUT, when there is an economic slump what Employers really want are flexible labour laws to be able to make their companies competitive in France and to fight off imported, cheaper goods (from China, Asia, Africa) and also to be able to compete on foreign markets !
It is quite true that in undeveloped countries labour laws are very flexible, in fact too flexible ! However, the reality is also that their cheap goods create employment problems in Western countries !
To permit companies to recover their competitivity, a Tri-Partide agreement by Employers, Unions and the Government, enshrined by Legislation, should allow Labour contracts to be suspended or modified to protect a company's future existence. It is the duty of all three parties to negotiate this !
When the Company has recovered its normal level of production and has averted "bankruptcy" normal employment contracts would then be resumed without fear !
Being stubborn and inflexible, or doing nothing, will never solve this problem or any other problem !
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