Observation (CEACR) - adopted 1998, published 87th ILC session (1999)

Employment Policy Convention, 1964 (No. 122) - France (Ratification: 1971)

1. With reference to its previous observation, the Committee notes the Government's report for the period from June 1997 to May 1998, which also contains the observations made by the General Confederation of Labour (CGT). The Government indicates that growth, sustained by the recovery of domestic demand, has led to an improvement in the employment situation. The unemployment rate, which in June 1997 reached a record level (12.6 per cent), has started to fall (12 per cent in March 1998) and this has especially benefited young people below the age of 25 years. The Government nevertheless considers that this recent progress must not be allowed to conceal structural imbalances in the labour market, which are resulting in particular in high levels of unemployment among the least skilled, a high level of long-term unemployment, difficulties in integrating young people in the labour market and the rise of certain forms of precarious employment, such as temporary employment or involuntary part-time employment. The CGT emphasizes in this respect that the increasing insecurity of employment in its various forms -- short-term contracts, temporary work, involuntary part-time work, subcontracting or "false" self-employment -- has discriminatory effects, restricts freedom of association and the right to collective bargaining and, in the long term, is detrimental to the "employability" of the workers concerned.

2. The Government states that it is convinced that growth alone will not lead to a reduction in unemployment unless policies aimed at job creation and at combating inequalities in access to the labour market accompany the economic growth policies. The Government describes its Employment Action Plan, which is part of an initiative launched by the extraordinary European Council on Employment held in Luxembourg in November 1997. The Government is committed to seeking, in coordination with its European partners, to a reduction in fiscal pressures and to pursuing reforms aimed at boosting demand and maintaining the purchasing power of households, while bringing public expenditure under control. The emphasis is on stimulating technological innovation, the development of small and medium-sized enterprises, and encouraging the emergence of new forms of activity, especially in the service sector. Furthermore, the adoption of Act No. 98-461 of 13 June 1998 to guide and promote the reduction of working time should encourage the creation of new jobs, as well as reducing the social charges levied on low wages.

3. The CGT considers that the Government has correctly made combating unemployment the priority of its social policy. However, it emphasizes the negative attitude of employers towards the reduction of working hours, as illustrated by recent negotiations in the metal industry, the sole result of which was to allow more overtime without any jobs being created. The CGT also states that it totally disagrees with the idea that it is the excessive labour costs of the least skilled workers that is the principal cause of unemployment: the reductions in social charges on low salaries that have been introduced since 1993 have been very expensive and had little effect, and the trend towards lower wages could eventually affect consumption, growth and employment. The Committee notes that, according to the CGT, there have hitherto been no real consultations with the unions on this issue. Recalling that under Article 2 of the Convention, employment policy measures must be decided on and kept under review within the framework of a coordinated economic and social policy, the Committee requests the Government to indicate whether consultations with employers' and workers' representatives have taken place on this issue, in accordance with Article 3.

4. The Committee notes the information concerning active labour market policy measures to prevent long-term unemployment by systematically offering a "fresh start" in the form of personalized follow-up or training. It also notes the information concerning the implementation of Act No. 97-740 of 16 October 1997 respecting the development of activities for the employment of young people. Noting that the fixed-term employment contracts concluded under this Act are of 60 months' duration, the Committee requests the Government to describe the measures taken or contemplated to ensure the long-term integration of the beneficiaries into employment after the end of their contract. More generally, the Committee recalls its interest in any assessment of the effectiveness of the various active labour market policy measures undertaken by the Government, in particular with respect to the reduction in working time.