1. Collective Bargaining in France: Traditions, institutional innovations and current issues
Annette Jobert
IDHE ENS-Cachan
Pescara, 22th October 2015 1

2. Content
1. The industrial relations actors: trade unions, employers’ associations, the State
2. Collective bargaining process
3. Current and future issues 2

3. 1.1. Trade Unions
Low union density: about 8 % (14 % in public sector, 5 % in private sector)
Five national confederations: CGT, CFDT, FO, CFTC, CFE-CGC
They are recognized as representative organizations by public authorities since (giving them some exclusive rights).
Reform of 2008 3

4. 1.2. Employers’ associations
MEDEF is the predominant organization (all sizes, all sectors)
CGPME represents medium and small firms
UAP represents craft industries and small enterprises under 10 employees 4

5. 1.3. The State : ambiguous position
Traditionally, State interventions are frequent and prominent in employment relations
Since 1981, a tendency by legislation to enhance the social partners’ autonomy and give to collective bargaining a major role 5

6. 2. Collective bargaining process
Three main features
High degree of juridification and involvment of the state
Three levels of collective bargaining: industry- level, company-level, interprofessional level
Two channels of representation in plants and companies 6

7. 2.1. Industry (sectoral) level (1)
Central position since one century
Negotiations of "branch collective agreements" by sectoral organizations (for Unions and Employers)
Establish the basic labour relations rules for a given industrial or service sector (broad metal industry, retails, chemical industry…) 7

8. Industry level CA (2)
Provisions on hiring, skills, minimum wages, job classifications, dismissals (and lay off), training, equal opportunities, discrimination…
Coverage rate: 98 % of all workers by mechanism of extension ( Ministry of Labour)
Today, their regulatory role weakening due to the decentralisation of CB to company level and the excessive number of CA (about 600) 8

9. 2.2. Decentralisation of collective bargaining to company-level (1)
Increasing role and autonomy from higher levels of regulation
Law of 1982 makes compulsory bargaining on wages and working time organization at plant-level
Compulsory bargaining on new issues
A law of 2004 allows company-agreements to be exempted from sectoral agreements 9

10. Company level collective bargaining(2): topics
Real wages, bonus, saving schemes
Working time arrangements
Classifications, strategic workforce planning
Supplementary benefits (social protection)
Working conditions
Employment of youth and elderly workers
Equal opportunities men/women
Bullying and harassment, stress at work
Elective bodies and unions rights 10

11. RESULTS About 35 000 agreements at plan level each year
About 7,5 millions employees covered, nearly half of private sector employees
84 % of agreements in companies with more than 50 employees 11

12. National level negotiations (1): issues and actors
Deal with a wide range of social issues like social protection, social inclusion, supplementary pensions, lifelong learning, labour market rules, flexibility…
Negotiated by unions and employers’ organizations ("peak" organizations) to which professional and territorial federations are affiliated. 12

13. National level negotiations (2): role of the State
Government is often involved in these negotiations because the issues are part of public policies
Government fixes the agenda of reforms and is called to finance them
Agreements generally written into law 13

14. National level negotiations(3): trends
This level of negotiations is becoming important so as to alleviate the effects of economic crisis both for workers and firms
Active debate now on competitiveness of French economy
Trend towards multidimensional agreements on labour market rules 14

15. 3.1. A major reform of the rules regarding representativeness
“Joint position” signed on April 9th, 2008 by the two main confederations of workers: CGT, CFDT and by MEDEF and CGPME
Act of August 20th, 2008 on “renovation of social democracy” followed closely the joint position 15

16. New criteria of representativeness
7 criteria among which the most important is “the audience obtained by the union list in professional elections”
10% are necessary at plant and company level, 8% at multi-industry and industry level 16

17. New rules of agreements
The right to negotiate is given to those who obtain the status of reprentative unions
To be valid, an agreement should be signed by one or more unions gathering at least 30% of the votes at the professional elections and not to encounter the opposition of unions having the majority of votes 17

18. Representative unions in 2013
At national level, 5 confederations keep their representation:
CGT : 30,6%
CFDT : 29,7%
FO : 18,2%
CFE-CGC : 10,8%
CFTC : 10,3% 18

19. 3.2. Welfare institutions in debate
Unemployment insurance, supplementary pensions funds, health and family allowances are managed by social partners
but with strict control of the State
Welfare system is hit by economic crisis but serious difficulties to reform it 19

20. 3.3. New responsibility for social partners in labour legislation (1)
31 January 2007 Act
Requires that the Government opens consultation with representative social partners prior to any legal reform related to work, employment and lifelong learning
Social partners themselves may negotiate on the subject of the contemplated reform 20

21. “Grand social conferences” (2)
New method of socialist government. These conferences aim at obtaining full participation of social partners for decision
First conference occurred in July 2012, second in July 2013, third in July 2014
Establish a road map of reforms and negotiations for the next 12 months 21

22. 3.4. Flexibility and employment security
Two multidimensional agreements (interprofessional level)
January 11, 2008 on “modernisation of labour market” (Act of June 25th , 2008)
January 13, 2013 on “employment security” (Act of June 14th, 2013) 22

23. 3.5. Territorial social dialogue
Social dialogue on economic and social dynamics on the territory level
Issues on economic development, social inclusion, environment, innovation…
Involves multiple actors: enterprises, unions, NGOs, associations, local autorities… 23

24. Major changes in IR system?
Reforms of union representation and labour markets may lead to major changes at company level: in anchoring collective action in workplaces, they reinforce legitimacy of unions and collective bargaining
Are they sufficient to strengthen union power in the present crisis and to reverse the current trend of the labour market (unemployment rate, increasing precarious employment…)? Probably not… 24

25. Reforms of collective bargaining
Further reforms envisaged to reduce the role of legislation and strengthen collective bargaining in order to stimulate economic growth and employment
One official report published in September on “Collective bargaining, labor and employment”. It raises an important debate in France 25