The Real Battle Begins: Mr. Macron vs. the Labor Code
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Version 0 of 1. Since his spectacular victory in France’s presidential race in May on a promise of a new kind of politics, Emmanuel Macron has had a rocky ride. The military chief of staff quit in anger over budget cuts; the president endured ridicule over how much he spent on his makeup; he has been accused of being aloof; his popularity ratings have plummeted. All that, however, is just a prelude to the real battle. That began Thursday, when the government unveiled the centerpiece of Mr. Macron’s plan to revitalize the economy: an overhaul of the infamously cumbersome, obtuse and harmful labor rules, the 3,324-page Code du Travail. Whatever Mr. Macron’s woes up to now — and many of them stem from anticipation of the changes — the success or failure of his effort to loosen the code could well determine the success or failure of his presidency. The overhaul came in the form of five decrees, a constitutional device the Macron-dominated Parliament empowered the president to use to streamline the process. And that is just the beginning. The government’s plan to reform the French social and economic system is expected to encompass reduced spending and changes to pension and unemployment programs, which could be even more contentious. But the labor code has a special place in France. Its roots go back to efforts in the Napoleonic era to restore order after the French Revolution, and at its heart is the notion of the worker in permanent need of protection against rapacious capitalists. Every effort at fundamental reform for at least a quarter of a century has foundered on giant and sometimes violent union demonstrations. To the code’s critics, its elaborate protections of workers’ rights, including the high cost of hiring and the even higher cost of firing, have been major obstacles to growth and foreign investment, and a primary reason for an unemployment rate that hovers stubbornly around 10 percent. The reforms would, among other things, make it easier for employers to hire and fire workers, and allow employers in some instances to negotiate with workers at the company level instead of following industrywide agreements. Public opinion polls — and Mr. Macron’s election — show that the French broadly recognize the need for change. The government has wisely paved the way with talks held over the summer with labor unions, and the more moderate unions have said they will not oppose the reforms. Others, like the General Confederation of Labor (C.G.T.), the second-largest national union, have declared their opposition. Philippe Martinez, the head of the C.G.T., calls the reforms “old recipes” that do not work and has said, “All studies show that there is no relationship between collective rights and the fight against unemployment.” The C.G.T. has called a one-day strike for Sept. 12. The knocks Mr. Macron has taken in his first months may have taught him the value of being more accessible and less concerned with his appearance, but his woes should not be exaggerated. He was elected on a platform of rescuing France from years of anemic growth, high unemployment and budget deficits. His success is critical for the French and for the European Union, in which France plays a leading role alongside Germany. Mr. Macron and his government have set off on the right track with the labor reform, and they must stay the course. |