Why So Many Companies Employee France May

Here is a curious fact about the French economy: the state was 2.4 times as many companies with 49 employees to 50. What is the difference between an employee? A lot, according to the French labor code. When a company has at least 50 employees in France, management must make three council workers, introducing revenue sharing, and submit a plan for restructuring the board if the company decided to lay off workers for economic reasons. French entrepreneurs often skirt restrictions by creating a new company rather than expanding the existing. "I can not tell you how many times when I was a minister I met the dealer to tell me about his company," Thierry Breton, CEO of Atos consulting firm 2005-2007 and Minister of Finance, said at a Paris conference on April 4. "I would ask, 'Why is the company?' He would say, 'Oh, I had some so I could continue the [employment] under 50. "We had to check our code to work" While polls show job creation and economic crisis is top issue for voters in choosing to 5 second-round to the president, not President Nicolas Sarkozy. 'S Socialist challenger François Hollande commit to Breton concerns. The company said the biggest obstacle to getting the Code du travail 102 years, a 3200 page book of rules determine everything from the ability to fire workers job classification. Many of the rules kick in after the French Payroll company 49.Tired terrible outside delays in getting orders filled, Pierrick Haan, CEO of DuPont Medical (do not confuse chemical company DuPont (DD)), decided last year to return to the production of some wheelchairs and medical equipment in France. 150-year-old company, based in Frouard in eastern France, creating 20 jobs in the manufacture of the custom in France and the plant will stop there. Faced with stifling labor code France, Haan may send further production of the standard equipment on the so-called "Near France", Tunisia, Bulgaria, or Romania. "The cost of labor is not a major problem, stiffness," said Haan. "If you make a mistake in your recovery plan, you can not fix it." There are 2.9 million people working in France, nearly 10 percent of the workforce in the 12 years now. "Because we have 100 employees in France, we have 10 employee representatives, to whom we must set a weekly meeting, even to talk about," said Haan. "Every time a change of social security contributions, which often, we have to update the software and send our people for training human resources. We can not fire anyone without the exorbitant cost. "The code sets hurdles for any company that aims to shed jobs as an advantage. It also gives judges the power to reverse years of staff cut after they started when companies do not follow the rules. The court even considered by some criminal code violations that could send executives jail.Software maker Viveo Group, an arm of the Geneva-based Temenos Group, began to have a conversation with the workers' council in February 2010 because I wanted to cut about a third of the 180 members of staff , according to court records. Viveo offer employees a voluntary departure plan in June of that year as council drags feet on the analysis of the previous proposal, the court records. Labour council then went to court to block the cut. Won a verdict against the original plan in January 2011 on the basis that Viveo predicted 18 percent rise in sales, which means that his future does not depend on the layoffs. France's highest appeals court reviewing the decision and is expected to rule on May 3. "What hold back rent in France is the lack of legal clarity about how to cut jobs," said Deborah David, a lawyer who works on ASSOCIES JEANTET in Paris following the case. If the decision is made, Viveo is to restore workers and handed over two and a half years on the back pay, he says.When courts do not intervene, politicians often do. Then the owner of Lejaby lingerie factory in Yssingeaux won court approval in January to fire about half their 450 employees in France and shift production in Tunisia, the company found itself thrust into the center of this year's campaign. Posted by Hollande to visit the factory, Socialist lawmaker Arnaud Montebourg workers said they "symbolize the situation of the country." He promised his party is to bring back jobs lost overseas over the past decade if it wins the election. Sarkozy promised to save the plant and take credit for designing his LVMH Moet Hennessy Louis Vuitton gain (MC), turning them into leather goods production.Hollande regulations make no mention of the platform, which aims to create jobs through tax incentives and government hiring, as the creation of 60,000 new posts of teachers. He said on April 25 that he chose to act against the "parade dismissal" is expected after the election: holding company to cut jobs until then to avoid political hot pictures. Labor groups say the code itself is not a problem. "If the code is complicated, because our society is complex," said Bernard Vivier, director of the Higher Institute of Labour in Paris, who studied the relationship between the union and to the company. "Cars are more complex today than they were 40 years ago. Why does not the code work "Bottom line:? With 2.9 million people out of work the worst unemployment in 12 years, France will be needed to overhaul rigid labor laws.