John Uskglass
Venerable Relic of the Wastes
http://www.telegraph.co.uk/news/mai...an18.xml&sSheet=/news/2004/05/18/ixworld.html
French 35-hour week 'a disaster'
By Philip Delves Broughton in Paris
(Filed: 18/05/2004)
The French government yesterday described the 35-hour working week as a financial disaster that was costing the state billions of pounds and promised to reform the system despite fierce union opposition.
In an interview in yesterday's Le Figaro, the finance minister, Nicolas Sarkozy, said that the 35-hour week had lumbered the state with £10 billion a year in additional social charges and that it had demoralised millions of workers.
"The Socialists made a decision which is not compatible with our responsibilities to Europe," he said. He suggested a system whereby those who wanted to stay on the 35-hour week could do so, but those who wanted to work and earn more had greater latitude.
"At a state level, we must make productivity gains, but I also want to reward those who work harder…to increase their buying power. This question of buying power is not a taboo."
M Sarkozy was appointed finance minister last month, following the heavy defeat inflicted on President Chirac's ruling Union pour un Mouvement Populaire in regional elections.
He hopes to use the post as a springboard into a campaign for the presidency in 2007, whether or not M Chirac decides not to run again. M Chirac and his prime minister, Jean-Pierre Raffarin, have backed off any controversial reforms for fear of agitating the unions, but M Sarkozy's ambition is likely to force the pace.
The 35-hour week came into effect in 1997, as the Socialists' big idea for reducing unemployment. Unemployment fell until 2000, while the economy boomed, but has since risen again, to just under 10 per cent.
Employers despised the plan from the start, as they were forced to keep salaries at the same level while getting less work from their employees.
Government aid and repeated promises of flexibility have scarcely helped and the employers' union has not let up in lobbying for the system's repeal.
Employees, however, enjoyed the extra time off allowed by their shorter working week. Working mothers were especially pleased, as it allowed them to see their children on the Wednesday school half-day, gym memberships soared, as did interest in home improvement, gardening and other hobbies.
But with France's economy sputtering, smaller businesses in particular have clamoured for help. A system that once seemed a leap forward in working conditions is now attacked as yet another regulatory burden on those wanting to pull themselves up the economic ladder.
Last August's heat wave also showed the flaws in the system. While almost 15,000 more people than usual died in the first half of the month, hospitals complained that the 35-hour week had left them with severe staff shortages.
In addition to easing France's restrictive labour laws, M Sarkozy is also pursuing an economic nationalism, pressing for changes to European Union rules so that governments can support big companies at times of distress and help to give them a competitive advantage against global rivals.
French 35-hour week 'a disaster'
By Philip Delves Broughton in Paris
(Filed: 18/05/2004)
The French government yesterday described the 35-hour working week as a financial disaster that was costing the state billions of pounds and promised to reform the system despite fierce union opposition.
In an interview in yesterday's Le Figaro, the finance minister, Nicolas Sarkozy, said that the 35-hour week had lumbered the state with £10 billion a year in additional social charges and that it had demoralised millions of workers.
"The Socialists made a decision which is not compatible with our responsibilities to Europe," he said. He suggested a system whereby those who wanted to stay on the 35-hour week could do so, but those who wanted to work and earn more had greater latitude.
"At a state level, we must make productivity gains, but I also want to reward those who work harder…to increase their buying power. This question of buying power is not a taboo."
M Sarkozy was appointed finance minister last month, following the heavy defeat inflicted on President Chirac's ruling Union pour un Mouvement Populaire in regional elections.
He hopes to use the post as a springboard into a campaign for the presidency in 2007, whether or not M Chirac decides not to run again. M Chirac and his prime minister, Jean-Pierre Raffarin, have backed off any controversial reforms for fear of agitating the unions, but M Sarkozy's ambition is likely to force the pace.
The 35-hour week came into effect in 1997, as the Socialists' big idea for reducing unemployment. Unemployment fell until 2000, while the economy boomed, but has since risen again, to just under 10 per cent.
Employers despised the plan from the start, as they were forced to keep salaries at the same level while getting less work from their employees.
Government aid and repeated promises of flexibility have scarcely helped and the employers' union has not let up in lobbying for the system's repeal.
Employees, however, enjoyed the extra time off allowed by their shorter working week. Working mothers were especially pleased, as it allowed them to see their children on the Wednesday school half-day, gym memberships soared, as did interest in home improvement, gardening and other hobbies.
But with France's economy sputtering, smaller businesses in particular have clamoured for help. A system that once seemed a leap forward in working conditions is now attacked as yet another regulatory burden on those wanting to pull themselves up the economic ladder.
Last August's heat wave also showed the flaws in the system. While almost 15,000 more people than usual died in the first half of the month, hospitals complained that the 35-hour week had left them with severe staff shortages.
In addition to easing France's restrictive labour laws, M Sarkozy is also pursuing an economic nationalism, pressing for changes to European Union rules so that governments can support big companies at times of distress and help to give them a competitive advantage against global rivals.
