French PM retreats on hot potato labour reforms bill

French Prime Minister Manuel Valls today retreated on controversial labour reform plans, announcing a new round of consultations before submitting them to cabinet.
Unveiled in mid-February, the reforms provoked criticism from within the ruling Socialist Party's own ranks and from labour unions.
"Probably over the next week I will meet with all social partners, labour unions and employers' organisations, one by one," Valls told reporters.
After the separate consultations Valls said he hoped to bring the parties together with the labour and economy ministers, Myriam El Khomri and Emmanuel Macron, to renew debate on the reform plans, which would make it easier for companies to lay off workers.

The submission of the proposals to the cabinet has been postponed from March 9 to March 24, a government source told AFP.
The reforms are part of government efforts to combat record unemployment levels in a country where employers are loath to take on permanent workers, as letting them go can be near impossible.

However critics have complained the measures would dismantle one of the key job guarantees for French workers.
Currently French companies have to justify in court plans to shed workers due to an economic downturn, a process they have complained makes it difficult and expensive to trim staff when the economy slows and ultimately makes them reluctant to hire.

The reform spells out simple conditions such as falling orders or sales, or operating losses as sufficient cause for shedding employees.
El Khomri said the reforms, which could drive a wedge within in the Socialists, aimed to boost competitiveness and protect jobs.
With many left-wing Socialists unhappy with the adoption of pro-business policies, El Khomri threatened that the government could use a controversial mechanism allowed under the French constitution to adopt the law without parliamentary approval.
Labour unions lambasted the reform plan.
"We can't accept it as it stands," said Jean-Claude Mailly, head of the Force Ouvrieres union.
The draft reform also provides more room for companies to reach agreements with their staff on employment conditions, and provide more exceptions to the conditions set out in the labour code, including on overtime pay and maximum working hours.

The reform also limits the damages employees can win in court for wrongful firing.
"We have to clear up a certain number of misunderstandings," Valls said. "We have to explain, respond to a whole series of false reports about this text."
Just last Tuesday Valls told French radio he did not doubt "for a single moment" that the cabinet would approve the measures on March 9.