1 EMF Summer School COLLECTIVE BARGAINING Cyprus, September 2009 The French Situation Blandine Landas

2 Some figures net jobs’ losses in the industrial sectors (2d quarter 2009) = - 0,5 % over three months, - 2,5 % over one year, after in the first quarter net jobs’ losses in all economy (2d quarter) = jobs’ losses are only open-ended contracts Number of employees = 17,9 millions (the most low level for three years) Industry: employment (August 2009) is decreasing for the 16-th consecutive month( in 1 year, d quarter) In March 2009, twice more of " plans of protection of employment " than in September 2008 (social plan after mass dismissals for economic reasons)  only for companies > 50 workers

3 Some figures From January 2008 to April 2009 : fixed term contracts (temporary agency work) = - 35,7% In spite of the extension of temporary lay-off : 2,6 million unemployed persons at the end of June, 2009, of whom young people Unemployment rate = 9,1 % in the 2-nd quarter (+0,6 % after +0,7 % in the 1-st quarter unemployed persons between April, 2008 and April, AT the end of 2009, unemployment rate = 10 % Unemployment of the years = 23,9 % (+ 5,2 % in 1 year)

4 Some figures Increasing number of establishments (local plants) using short time working (temporary lay off) employees in the 2-nd quarter 2009 (the same level as in 1993) in the 1-st quarter in the 4-th quarter 2008 Blue collar workers are the most affected, especially in the automotive sector = 10 % of the employees of the sector in the 1-st quarter 2009 In certain cases, limitation of the temporary lay-off by the use of various systems of flexible time management: modulation of schedules over the year (low periods and high periods), days off, reduction of working time, time banking accounts...

5 Some figures Investments in the manufacturing industry (12,1 % of the GDP in 2007) = fall of 23 % in 2009 (source: INSEE = National Statistic Institute) Industry = 21 % of the GDP Exports (23 % of the GDP) = forecasts of - 12 % in 2009 INSEE = + 0,3 % of the GDP in the 2-nd quarter 2009 after 4 consecutive quarters of decrease (+ 0,3% in the 3rd quarter) GDP 2009 = - 2,7% / - 3 % (-3% / -3,3%) Last figures from INSEE on sectoral production (July 2009)

6 First results and main measures Charter for the automotive sector for 3 years (July, 2008)  State 50 M€  OPCAIM 50 M€  Companies and\or regions 50 M€ Objective: safeguard of jobs by vocational training  Reconversion, retraining, new competences (sustainable development... ) Implementation at the regional level 7,6 M€ were used

7 First results - main measures FISO (Social Intervention Fund) = 1,5 billion € from the State in M€ from the unemployment insurance fund M€ from the training fund ( 200 M€ from the companies + 80 M€ from the State + 80 M€ from the European Social Fund ) FISO Objectives:  Support to sectroral or territorial projects: actions of vocational training and/or on jobs and competences management  Financing of short time working :temporary lay off  Accompanying the dismissed employees and financing of the fixed premium for the precarious employees, support for the reconversion, training programs (including for the coverage of the salary), alternation contracts for the young people, devices of jobs) and competences anticipated management, support to projects in territories most affected by the crisis  Unions are associated to sectoral projects or branch projects with the other concerned partners (national piloting committee )  For actions in territories, the local actors (Unions) have a wide delegation within the framework of a local agreement

8 First results and main measures FSI (Strategic Investment Fund) created in December billion €  6 B€ today and 14 B€ from existing shares in the companies capital (from CDC or State) It is a public fund (51% CDC, 49%State) FSI Objectives:  To strengthen and to stabilize the capital of the French companies  Bring capital stocks in companies " with creative industrial projects of values and competitiveness for the economy ".  It takes minority participations, itself or in co-investment  No special priorities on the type of companies (big or small) or on sectors  Long term Investor with the objective to put pressure on corporate governance and to influence their industrial strategy FSI interventions: Daher (85 M€, Valéo (19 M€, Farina (20 M€), Led To Lite (4 M€), 3S Photonics (10 M€), Gemalto (160 M€), Mecachrome … possible investment in Heuliez

9 First results and main measures FMEA (Fund for Modernisation of Automobile components manufacturers) = one of the measures of the Automobile Pact, one of counterparts asked to the automobile manufacturers in exchange for State help  600 M€ = 50 % from State, 50 % from Renault + Peugeot). Duration = 8 years FMEA Objective:  To promote the emergence of more important, competitive car components manufacturers, with strengthened capacity of R&D for the automobile manufacturers  FMEA  only the suppliers of 1st rank FMEA interventions: TRIER (55 M €), Michel Thierry (25 M €), Savoy International (4,3 M €), dissimilar Sora (9 M €), SNOP. More than 80 files are being studied (ex Montupet / Foundry)

10 Temporary lay-off The financing is made through an agreement between the company and the Employment Public Service ( 1/3 by the company, 2/3 by the State ). Financing has gone from 50 % of basic wage to 60 % on Then (on / UNEDIC contribution) to 75 % of the gross wage ( including premiums, it means 90 % the net wage )  in case of reduction of long-term activity. –With the payment of the training allowance: 100 % of the net salary  Companies are reluctant to apply this kind of agreement which imposes them in return to safeguard jobs ( at least equal to the double of the agreement period ).

11 Temporary lay-off   Some companies have concluded agreements with the guarantee of 100% for the payment of the salary during the short time working period = financial contribution from the company and/or from the employees by the payment in days of working time reduction, as in Renault for example  Many agreements at company level organise also during the period of reduction of the activity and short time working some measures of vocational training by using for example the individual right to training (DIF)

12 Temporary lay-off At first the duration of the agreement on short time work/ temporary lay-off has been extended from 600 hours to 800 hours (payment of hours) And to 1000 hours for the automotive sector (car components and automobile manufacturers) In September 2009 = 1000 hours for all sectors (after the intersectoral national agreement in July 2009)

13 Temporary lay-off and training The national agreement in the metal industry (May 2009) promotes vocational training  with the financing by the OPCAIM (bipartite training fund for the metal industry) of a part of companies payments (wages and training costs)  50 M€ are mobilized for the training of employees by professionalizing actions (actions professionnalisantes)  A minimum base of common industrial competences as well as schedules of professionalization (70 hours as a minimum) will be confirmed both by the trade-unions and the sectoral employer’s organisation  Assistance to the training engineering (besides 50 M€)  As an example: in 2008 for the automotive sector, the OPCAIM financed 100 M€ ( trainee and 1900 concerned local plants)

14 Temporary lay-off and training The national setoral agreement for metal industry, May 2009 (Urgent measures for employment in metal industry) opens also the possibility to use the Individual right to training during the working time The agreement incites to combine short time working and training either in the company training plans, the periods of professionalization and/or the individual right to training (DIF)  The use of DIF = + 50% (2008/2007), + 50% (2009/2008), + 85% in June 2009

15 National sectoral agreement May 2009 in Metal industry The compensation of short time working (temporary lay-off) at the level of 75 % of the gross wage is recognized as a means to maintain work contracts. Companies have to conclude with the public employment services an agreement on long-term partial activity.  In return, the company commits not to dismiss during a period equal to the double of the agreement.  It commits also to realize an individual professional discussion with the concerned employees to elaborate training measures.

16 National branch agreement on May 2009 in Metal industry The employment of the young people is promoted to prepare the recovery and to accompany their insertion in industrial professions, by taking into account the less qualified people or those having no adapted / required qualifications. The objective for is to maintain the integration of young people in apprenticeship or professionalization contracts. Tutoring in the company is supported with an allowance of 200 euros a month.

17 National branch agreement on May 2009 in Metal industry The loans of staff are promoted to avoid the consequences of a measure of short time working / temporary lay-off or dismissal for economic motive. The loan of staff is regulated:  legal security = preliminary information to the concerned employees, consultation of the workers representatives, agreement between the concerned companies, guarantees for the employees: the refusal by the employee in case of loan modifying a substantial element of his work contract can not give place to penalty or dismissal, the preservation of the payment and the collective and individual guarantees are insured.  The agreement excludes any loan of staff for profit. No figures but it seems that it does not work well