French employers say draft labour accord unacceptable
20 billion euros in tax credits to offset high social security charges for labour, which is often cited by economists as a brake on growth and an important factor in maintaining chronically high unemployment. Unit labour costs in Germany crept up 2 percent 1999-2010, while in France they leapt by more than 20 percent, OECD figures show. Productivity gains were pumped back into wage increases to fuel domestic demand. French unemployment is at a 13-year high while across the Rhine joblessness is at 6.9 percent, below the euro zone average.
Parisot said that heavier levies on short-term contracts, which are mainly used in tourism and restaurants, would make employers less - not more - likely to hire, while undermining broader efforts to ease wage pressures.
"It would be absolutely disastrous...to fail because of this purely symbolic issue," she said.
Parisot, accusing Hollande's Socialist government of indirectly interfering in the talks to employers' disadvantage, added that they would not extend negotiations beyond this week.
Flexibility Employers want an agreement that will allow companies to adjust their wage burden more nimbly in a downturn, as well as simplifying the rules about firing workers to make the process more predictable and keep costs in check.
Two major unions reject measures to add flexibility. All five unions at the talks want greater job security for workers on flimsy contracts, calling for employers who use them to be penalised by paying higher taxes or more welfare contributions.
Unions reject greater flexibility in work contracts and demand more security for short-term workers.
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