France tightens employment laws

There was condemnation of how M & S handled the closures

The French Government is set to introduce new measures to make it more difficult for companies to sack staff.

This comes in the wake of a decision by Marks and Spencer to close all its stores in France and across Europe, except in the UK.

The employment minister will announce a series of changes

Other major companies are expected to announce big job cuts this week.

The announcement of the job losses at Marks and Spencer and the manner in which it was handled, with staff learning of their impending dismissal over the radio, caused fury and consternation in France.

There was condemnation of the company from the prime minister downwards.

Union consultation

Elisabeth Guigou, the employment minister, will announce a series of measures on Tuesday that will force companies to consult more fully with unions before announcing restructuring plans.

The measures are aimed at giving employees a voice in decisions concerning plant closures and to help them re-adjust if such moves are unavoidable, Ms Guigou said.

"First, we have to give employees the capacity to create new leverage regarding the unilateral decision of the company chief," Ms Guigou said on France Inter radio.

She said the bill would assure that employees have the right to discuss the soundness of any restructuring plan that entails job losses.

More compensation

The government proposals are an effort to look ahead to eventual firings, improve employees' situations if firings are necessary and, generally, "better control" such situations, Ms Guigou said.

Financial compensation due to sacked employees, which currently stands at one-tenth of a month's salary per year of service is likely to be doubled and companies will be forced to extend the contracts of staff to allow them to be retrained.

But right-wing critics warn that the measures, far from persuading companies to stay in France, are more likely to make them relocate abroad.

The spotlight this week will move from Marks and Spencer to the German kitchen appliance manufacturer Moulinex and the domestic airline Air Liberte which are expected to announce major job cuts.