French government to bypass parliament over disputed labour reform

Record ID: 104173

  • Title: French government to bypass parliament over disputed labour reform
  • Date: 10th May 2016
  • Summary: PARIS, FRANCE (MAY 10, 2016) (REUTERS) EXTERIOR OF FRENCH PRESIDENTIAL ELYSEE PALACE FRENCH PRIME MINISTER, MANUEL VALLS, GETTING OUT OF CAR AND ENTERING ELYSEE PALACE FRENCH LABOUR MINISTER, MYRIAM EL KHOMRI, GETTING OUT OF CAR AND ENTERING ELYSEE PALACE FRENCH ECONOMY MINISTER, EMMANUEL MACRON, GETTING OUT OF CAR AND ENTERING ELYSEE PALACE FRENCH FLAG BLOWING IN WIND FRENCH PRESIDENT, FRANCOIS HOLLANDE, SHAKING HANDS WITH VALLS / HOLLANDE LEAVING DOWN HALLWAY VALLS WAVING ON STEPS OF ELYSEE PALACE / VALLS WALKING DOWN STEPS / VALLS WAVING AT CAMERAS BEFORE GETTING INTO CAR FRENCH FINANCE MINISTER, MICHEL SAPIN, LOOKING AT PHONE ON STEPS OF ELYSEE PALACE AND WALKING DOWN WITH EL KHOMRI
  • Embargoed: 25th May 2016 14:59
  • Keywords: Manuel Valls Myriam El Khomri labour reforms employment parliament Francois Hollande
  • Location: PARIS, FRANCE
  • City: PARIS, FRANCE
  • Country: France
  • Topics: Lawmaking,Government/Politics
  • Reuters ID: LVA0014H872H3
  • Aspect Ratio: 16:9
  • Story Text: France's government decided on Tuesday (May 10) to bypass parliament and impose a relaxation of the country's protective labour laws by decree, sidestepping a rebellion against one of socialist President Francois Hollande's flagship reforms.
    The decision, announced by Prime Minister Manuel Valls, follows weeks of street protests against the bill which seeks to make hiring and firing easier and the realisation that lawmakers within the ruling party looked certain to shoot down the proposal.
    Defeat would have delivered a hefty blow to the unpopular Hollande, who has said he will only run for re-election next year if he lowers a jobless rate stuck above 10 percent. The government hopes the reform will encourage firms to recruit.
    The government's decision not to compromise by watering down further the labour bill is also a strong signal to international investors and rating agencies, who have so far taken a welcoming but cautious approach towards Hollande's pro-business turn.
    A rarely used clause in France's constitution - known as 49-3 - allows for reform by decree and underlines the strong powers wielded by the executive under France's presidential system, designed by World War Two leader Charles de Gaulle.
    It is the second time in as many years Valls has used the clause, having last year rammed through parliament a law which loosened up Sunday trading rules and regulations in the transport and legal sectors.
    Although Valls diluted parts of the labour bill in March following student protests, the proposal retains measures giving more flexibility to employers to agree in-house deals with employees on working time.
    It also offers companies less restrictive conditions for layoffs made for economic reasons.
    Rebel legislators in the Socialist Party accused the government of riding roughshod over parliament.
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