The congress of the PS of Poitiers is well and truly over. No more “syntheses”, instead of expensive pragmatism to the Prime Minister. With its new plan of 18 measures “All for employment in small and micro businesses,” Manuel Valls opens the floodgates of the flexible labor market with the immense hope that these flexibilities end the “fear to hire “companies and, ultimately, enable forces to reverse the unemployment curve.
For the Prime Minister, the” timing “is the right choice. You really had to wait for the Congress of the PS is closed. They would have frowned upon arriving at Poitiers with what he calls himself a “Jobs Act has the French” providing for a further premium of 4,000 euros to companies that hire the first employee, the freezing of social thresholds for three years, prud’homales capping benefits, the possibility of renewing twice (instead of now) a fixed term contract (CDD) … Much of the socialist activists – not just the slingers – would be -be not appreciated this new package of measures for companies.
A supply policy claimed and asserted
In fact, it can only be of agree with Manuel Valls when he asserts that “no government has done as much for companies” . After a laborious beginning of five years, are in total more than 41 billion euros over three years, will be “rendered” to companies through exemptions for employer social security contributions or tax breaks. Since 2013 and the introduction of competitive employment tax credit (CICE), the government multiplies gestures for enterprises: responsibility pact (with total exemption from social security contributions at the level of the minimum wage from 1 January 2015), measures for investment (overdamping), security of employment law that has secure procedures for collective redundancies and that opened the door to keeping employment agreements, to derogate from the working time and / or lower wages.
Never seen. Even under Nicolas Sarkozy with the “Labor job purchasing power” law (Tepa) or Jacques Chirac with the failed attempt of the new Employment Contract (CNE) by Dominique de Villepin. While many measures are only temporary and cyclical, as the premium on hiring a first employee would have only lived a year or measurement of 140% overdamping. They are intended to restore the famous “confidence” … And to reduce unemployment by 2017.
The “leg” social-liberal Manuel Valls
But beyond that, the government’s policy transforms the French economy in general and the labor market in particular in small successive touches. Manuel Valls gradually has his way. He who had theorized before the Socialist primary in 2011 what he saw as the necessary social liberal turn that was to operate the Socialist Party … A direction that did happen last place to the primary with less than 5% of votes. It has not disarmed and that he professed in 2011, he implements it since 2014 and its accession to Matignon. Hollande leaves out either by conviction or by distress or by interest.
Manuel Valls therefore trying to pass his reforms smoothly. He found an ally in the person of the Minister of Economy Emmanuel Macron, substantially the same wavelength as him. This is also a new section of the famous Bill “Macron” on the economy and growth that will establish a cap on damages that can be awarded by the tribunal for unfair dismissal. In future these damages vary in companies with fewer than 300 employees between two months and twenty months depending on the seniority of the employee and company size. It is a “socialist” government that will give life to this ancient employers claim.
Even better, in the future too, a defect in the dismissal procedure will not deliver more and causes real and serious nature of this and will be a flat rate of the employee of a month’s salary. Again, this is an old employer anthem …
thresholds As for businesses, the wishes of employers’ organizations are largely considered: over the next three years, over thresholds Social up to 50 employees included – which represents over 50% of salaried employment – does not trigger additional social security and tax deductions (transportation payment, 1% housing contribution vocational training, etc.)
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And what about the expected changes over the fixed term and temporary work. We imagine the cries of outrage would have pushed the left if a right-wing government had proposed the measures recently decided Manuel Valls.
Now, a CSD may be renewed twice instead of a far but the total duration of “three” CSD will still not exceed 18 months or 24 months in certain specific cases (foreign mission). The chamber applauds both hands, as he claimed this a long time. The government’s logic to adopt this measure may surprise. Labour Minister François Rebsamen was justified by the fact that 90% of new hires are currently in CDD. The precariousness is there. Then allow to renew twice a CSD does not make matters worse … We could also consider that after two CSD 9 months, the utility of an employee was proven and could then benefit from a CDI … Especially now that the employment tribunal procedure is “safe”.
The gradual diversion of rules on working time
The fate of the security agreements Job also bears the “claw Valls’. Created by law to secure employment in 2013, these agreements allow in troubled companies “cyclical” derogation from the rules on working time and / or lower wages. Specifically, if a majority agreement authorizes a company can for two years in exchange for maintaining employment, increase working hours (or lower) and lower remuneration than 1.2 SMIC, through, for example, exemption from the payment of overtime supplements.
In its new plan, Manuel Valls has decided to extend to five years the duration of the agreements. This means that a company may depart during this period with the regulations on working hours. It is a way to gradually expand the business field where such agreements may be concluded. Indeed, it seems difficult over five years to talk about a problem “cyclical. In truth, without the loud shout, Prime Minister widening the breach that bypasses the law on the 35 hours. And it probably did not said its last word.
Taken separately these measures have casually. But if laid end to end, we measure how much the French labor law is changing. Certainly, it is far from symbolic laws “Hartz” decided in Germany by Gerhard Schröder. Manuel Valls knows the aversion of the French for the sudden change. Then he moves slowly.
The Arles reform CDI
Of course, employers and liberal economists accuse him of not achieving the great “structural and necessary reform “consisting of more flexible CDI. But Manuel Valls is realistic. He knows that this is a “marker left.” Touching the CDI takes the taboo and “it will not happen.” But pragmatic, Prime Minister probably knows also that the introduction of a single contract or CDI progressive rights is something “mystical” in its zealots. How such a contract would reduce the precariousness or, at least, would distribute among the best employees? How such a contract would be useful while now everything is done in France to facilitate dismissals and even avoid with the “invention” since 2008 the contractual termination of the employment contract? At this point, Manuel Valls rather play another partition.
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