`Mirage of hazardous experiments' confronts France

The French Prime Minister, Mr Lionel Jospin, prides himself on keeping promises

The French Prime Minister, Mr Lionel Jospin, prides himself on keeping promises. But the fulfilment of Mr Jospin's 1997 campaign commitment to reduce the French working week from 39 to 35 hours has satisfied no one. Privately, Mr Jospin's fellow Socialists admit they rely on economic growth - not reduced working hours - to create jobs.

The 35-hour week is the responsibility of the Employment Minister, Mrs Martine Aubry, the daughter of the former President of the European Commission Mr Jacques Delors. Mrs Aubry calls the two laws she has drawn up "a plan for society" in the tradition of historic advances such as the 48-hour week at the beginning of this century and the Popular Front's adoption of a 40-hour week with two weeks' paid holiday in 1936.

In 1981, the late Francois Mitterrand promised to reduce the working week to 35 hours, but stopped at 39.

Mrs Aubry's first law was passed in October 1997 and, according to official figures, has so far created 85,334 new jobs - not many in a nation of 60 million. Although the first law provided guidelines for negotiations between management and trade unions, the 11,551 agreements signed by July 21st involve only two million employees.

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Twenty-two industry-wide agreements, concerning among others the French banking, chemical and telecommunications sectors, were published on August 8th.

Unfortunately for Mrs Aubry, several of these accords are challenged by unions who did not sign on to them. In the 200,000-strong banking sector, for example, the Association Francaise des Banques, which represents management, signed an agreement with one union only. Bank employees from four other unions demand that the accord be scrapped - the Paris high court will decide on September 28th.

The experience of the Compagnie de Chauffage Intercommunal in the Grenoble region is instructive. It took 63 meetings - 648 hours of negotiations costing Ffr170,870 (£20,512) to achieve an agreement that awards 171 employees 23 extra days off each year. For management, the only advantage of the reform is that it has introduced the concept of flexibility to the French workplace.

Each agreement is custom-made, with some employees opting for shorter work days, some for a half day off every week and some for longer annual holidays. Employers are now allowed to vary times - for example, longer hours in summer and shorter hours in winter in the tourist trade. The only condition is that employees be notified of new schedules seven days in advance.

French businessmen have rushed to conclude agreements this summer to take advantage of financial incentives offered by the government. Before June 30th, they were given Ffr9,000 (£1080.43) per employee. Those who sign by December 31st will receive Ffr7,000 (£840.34) per employee.

Yet Mr Ernest-Antoine Seilliere, the president of the French management group MEDEF, claims 99 per cent of French companies have yet to reach an agreement with their employees. If so, it is difficult to see how the government can enforce the January 1st, 2000, deadline, beyond which all companies with more than 20 employees are required to observe a 35-hour week. Smaller companies have been given until January 2002 to adapt.

On October 5th, the National Assembly will begin debating Mrs Aubry's second draft law, which was adopted by the government on July 28th. When the first law was debated two years ago, President Jacques Chirac warned the left-wing government against "the mirage of hazardous experiments". This summer, he said he was not opposed to the principle of shorter working hours, but objected to "the general and obligatory nature of this measure".

At MEDEF, Mr Seilliere called the presentation of the second law "a dark day for French companies and employees". Even the former prime minister and speaker of the National Assembly Mr Laurent Fabius - like Mrs Aubry a Socialist - admitted parts of the new law were "very complicated".

The left-wing MDC, allied with the Socialists, predicted it would not have a significant effect on unemployment. And the French Communist Party, which has been most vocal in demanding free time for workers, has criticised the financing of the reform and demanded numerous amendments.

The laws on the 35-hour week are widely referred to as a "gas factory". The second law, the Journal du Dimanche noted, "adds some beautiful plumbing". This includes an incomprehensible sliding scale for limiting and remunerating overtime hours between 2000 and 2004, the possibility of "annualising" work for a total of 1,600 hours and the requirement that managers not work more than 217 days per year.

To get around the awkward problem of asking managers to punch time clocks, the law measures their work in days rather than hours. Under French law, top executives are exempt from laws concerning work time. Pity - studies find that executives, not workers, complain most of long working hours.