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French Labor Organisations: Trades Unions & Works Councils

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The Beginnings of what an Expatriate Manager needs to know about French Trades Unions

SystemesTo give some idea of the complexity of negotiating labour-related issues in a country that is not one’s own, particular attention will be paid to one country in detail, France, and this will show some of the rules that have to be respected in the domain of labour relations and negotiations.  Only about 8% of all private sector workers belong to Trades Unions in France .  However, Trades Unions have more importance in the country, and in the public service, than this figure would suggest so it is important to know about them.  It is also important to understand not only how they cooperate in the whole labour system but their areas of influence.

Request more information about French Management, Managing in France, Cross-cultural conflict resolution and leadership coaching in France from :
 
Syre Consulting
14, avenue de l'Opéra
75001 Paris, France
Telephone : +33 1 30 61 46 17
 
For a rapid email response, send a message to : J.Gaynard@syre.com or J.Maene@syre.com
 

The importance of French Labor Organisations/Trades Unions and their Imortance in Social Institutions 

The French system has been built around tripartite Government/Industry/Union administration of a whole range of social institutions.  Union delegates belong to the Boards which administer unemployment benefits (through the UNEDIC-ASSEDIC), the job search offices (l'ANPE--Agence National pour l'Emploi), the complementary pension funds (ARRCO, AGIRC), the National Training Council and the Boards of many other institutions.   The words behind acronyms such ANPE or ARRCO are not important to remember.   France is a great lover of acronyms and most French people know the Institution they stand for (SNCF, the railways, RATP, the French metro system) but not always the words behind the initials.

On the boards of institutions such as ARRCO, the Government is represented by a civil servant from the appropriate ministry, Industry is usually represented by an employee of the MEDEF (le Mouvement des Entreprises de France) and one or two of the main unions have a Delegate.  These instances are where the real power lies in the country, and an important part of the Unions' finances depends on the fees they receive from participating on these Boards, so there is fierce competition between the unions to have maximum numbers of their delegates on each board.   

At the National Level

The Five Nationally Representative Unions 

The five nationally representative unions in France are the : 

  • The CGT (formerly 100% affiliated to the Communist Party, but now making its own way while maintaining strong links to the Communist Party), CGT-FO (born in 1948 from a schism with the CGT, which is usually referred to as just FO, and the ideology of whose branches can vary from being strongly Trotskyist to strongly supportive of Management)

  • The CFDT (which is Social-Democrat and has recently come under a lot of criticism because it negotiated successfully with the Government on the new pension laws, while the CGT and CGT-FO boycotted the final negotiations)

  • The CFTC (originally the Christian Trade Union, but its links with the Catholic Church are now weaker than at the time of its origins)

  • The CFE-CGE (the "Middle Managers" trade union)

  • FO (Force Ouvrière) which broke away from the CGT in the 1920s.

Only nationally representative Trades Unions can take part in talks with the Government. In 2007 there will be negotiatons between the Government and the Unions' representatives to see if the list of representative unions will be changed to include newer, more radical labor organisations such as SUD.  SUD, which is strongly Trotskyist,  has become very prominent over the past few years.  SUD is pushing to be allowed in on national negotiations.  It has strong membership numbers in organisations such as the Post Office and the French Railways and among teachers in the National Education System.  When strikes happen in the public sector they tend to last for weeks, if not months and this can have an impact on all areas of the French economy.  The Social Security System, the Pensions system and the National Educational System are usually at the centre of government-union disputes.

At The Company Level : Les "Partenaires sociaux"

Works Councils and Elected Union Delegates

Once a company has 11 employees, it has to organize elections for Union Delegates (Délégués du personnel).  When it grows to 50 employees, it has to have a Works Council (Comité d'Entreprise). Many small French companies limit themselves to either 10 employees or 49 employees. 

The "Code du Travail" is very clear about Union and Works Council elections and how they are held.  Elections have to be organized every two years.  Once elected, or even if they only stand for election, Union delegates become protected workers.  If the employer wishes to terminate their contract(s) he has to get permission from the Works Council itself.

A company of between 75 and 99 employees has to have 4 Works Council delegates and 3 Union delegates.  A company of 500 employees has to have 8 Union delegates and 7 Works Council delegates.  In companies counting less than 200 employees, the employer can decide to merge the responsibilities of Works Council and Union Delegates in a DUP, "Délégation Unique du Personnel".  In this case, the number of elected delegates is 4 for a company of between 75 and 99 people and 5 for a company of between 100 and 124. 

       Union and Works Council delegates in a company of over 50 employees have an envelope of 15 hours a month in which to do Union or Works Council business, however use of that time must respect the mandate they have been given by their colleagues.  Elected delegates also have total right of movement within the company.

The Mandate for Union Delegates :

 

1)   To present to the employer all individual and collective complaints about salaries, respect of the "Code du travail" and other rules and regulations in vigour concerning Health, Safety, Hygiene and other forms of Social Protection (Protection sociale).

2)   To inform the Work Inspectorate (L'inspection du travail) of all non-respect of complaints and observations relative to the application of laws and regulations within the company over which they have a duty to provide control.  When a work inspector visits a company, he or she informs the Union Delegates and they are asked to accompany him or her during the visit.

3)        Union delegates have many other responsibilities.  They have to be consulted about any changes in annual vacation, changes in weekly or monthly working hours, "reclassement" of employees who have been victims of on-the-job accidents or work-related illnesses.  They need to receive information on a number of aspects of company life and the employer has to meet with them once a month.

The French Works Council (Le Comité d'entreprise) and Its Tasks

The works council is made up of :

1) The senior manager in the company, who acts as President of the Works Council although no preeminence should be allowed him or her because of the hierarchical position in the company.

2) The Works Council delegates, who have been elected for a period of 2 years.  As with Union Delegates, each Works Council delegate has a deputy who was on the same electoral list and who can stand in for him or her if needed.

3) Each Union represented in the company can also designate a delegate to the Works Council.  The Works Council is a legal entity in its own right.  It was created in 1945 so that employees could "express themselves collectively and thus ensure that their interests were taken into account."  The Works Council has to be advised and consulted on nearly every aspect of the management of the company :  its economic and financial health, the way in which work is organized, the training plan and methods of production.  Article L431-4 of the "Code du travail" states that the Works Council "elaborates, on its own initiative, and examines at the request of the Head of the Company, all proposals which could improve working conditions, improve training and employment among employees and their life in the company."

       In a company that has less than 150 employees, the Works Council meets a minimum of once every two months.  The Secretary of the Works Council keeps minutes and circulates them after the meeting to the people and instances who need to be kept informed.

       The Works Council is financed by a subsidy from the company which amounts to at least 0,2 percent of the gross wage bill.  The company must also provide the Works Council with a place in which to meet, equipped with the material necessary for its satisfactory functioning.  The Works Council has to keep track of all property which has been given over for its use or which it has acquired.

The Works Council has six main areas of responsibility:

 

1)   The area of contributing to satisfactory life in the company, which can be resumed as "Social and cultural activities".  These are the activities which the employer is not obligated to provide but which have been put in place for the benefit of the employees, their families and retirees of the company.  In this area are found activities such as organizing of ski trips, Xmas parties for children of employees, theatre outings, etc.

2)   In the area of daily working conditions, the Works Council is informed of and consulted about all matters relating to changes in working hours, new technologies, changes in working conditions, competencies, qualifications, methods of remuneration and changes in career paths.

3)   Training.  Every year the Works Council has to be consulted about the coming year's training plan.  It also gives its opinion about how the previous year's training plan worked out.

4)   With regard to the employment situation, the Head of the Company must inform the Council about trends in numbers employed, the employees' qualifications by gender, give a breakdown of temporary and permanent contracts and explain why he or she has had recourse to temporary employment.

5)   With regard to the introduction of new technologies, before every new technology introduction the Council has to be informed of the repercussions this will have on working conditions, remuneration, competencies, training and overall working life inside the company.

6)        With regard to the overall financial health of the company, the Works Council must be kept up to date and consulted about new and old market developments, all economic developments which could affect the company and the general management of the company.

Communications between the Head of the Company and the Works Council

 

1)   Within one month of the Works Council being elected, the Head of the Company (P.D.-G. or D.G. or Gérant) must communicate to the Works Council financial and economic information stating the legal status of the company, its economic prospects, the names of the major shareholders (holding more than 10% of the capital) and an analysis of how the company is doing in the sector in which it competes.

2)   At least once a year, the Works Council must receive a written report about the company.  This report must include figures of total turnover, profits or losses, global figures on the volume and value of production during the preceding year, information about transfers of capital or profits between subsidiaries and parent or holding companies, the status with sub-contractors, how the profits have been shared out, a resume of all subsidies or loans received from the State to buttress employment, a breakdown of investments made, any changes which have been made to the structure of the organisation and the total amount of salaries paid.

3)   Every quarter, the Works Council must receive a report detailing information about trends in customer/client orders, the financial health of the organisation, and the number of jobs (including temporary jobs) which have been created or eliminated.

©John Gaynard, Syre Consulting, 2007

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