Labor Stability: Expensive and Unfair Utopia

The concept protects those who work for the state or in a formal company, at the price of excluding those looking for a job and in particular young people.

Tuesday, October 3, 2017

Jorge Cobas González

In France, a country characterized by being one of the most advanced in protecting workers, the pendulum of history is changing the direction of its swing, meeting the demands of reality: the competitiveness of economies is based on the efficiency with which their resources are used. And in the Age of Knowledge, the human factor is the first to be taken into consideration in this matter.

The new French president Emmanuel Macron says that the labor reform project will ease hirings and dismissals in order to attract new investment and reduce chronic unemployment: "The change will encourage employers to take people on. It's about breaking a system that protects very well the insiders [those who are in the system], who benefit from a stable contract, but at the price of the complete exclusion of other, younger, less qualified people."

As the article on reports,   "... The reform provides a margin for employers and workers to negotiate agreements in the field of companies on issues such as working hours or compensation. The idea is to decentralize, bring labor negotiations closer to the ground, and allow adaptation to the ups and downs of the current situation.  In return, compensation for legal dismissals - that is to say, not unfair ones- increases by 25%. France will help foreign investors with redundancies in the event of economic hardship, a measure designed to attract multinational corporations.  Up until now French authorities had to take into account the situation of the company in all the countries where it operated; now it will be enough for things to go wrong in France. Another key measure is the merger into a single event of the multiple instances where workers of a company are represented today, and the possibility of negotiating in companies of less than 50 workers without going through the unions and avoiding sectoral agreements."

Unemployment in France is 9.5%, in a context of high fiscal deficit, which forces "... a shift from one of the countries with the most rigid labor laws in the developed world, towards the principles of so-called flexicurity , the combination of flexibility for business and safety for workers.

In Central America, where inequality in living conditions and personal development opportunities are among the highest in the world, regulatory rules of the labor market are maintained - and continually added to - and minimum wages are set to protect the fortunate public employees and workers in the formal sector, to the detriment of the opportunities to obtain work for those who are unemployed and young people trying to find work.

See article Macron will ease dismissal and hiring to reduce unemployment. (In Spanish)

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