Name: Anonymous 2006-04-10 10:03
Chirac retreats on youth labor law
Law to be scrapped, PM de Villepin to stay
http//www.marketwatch.com/...
Excerpt:
LONDON (MarketWatch) -- Bowing to pressure from students and unions, French President Jacques Chirac on Monday unveiled plans to scrap a controversial youth-labor contract that spawned weeks of strikes and led to a complete political stalemate.
The first-job contract, also known as CPE, will be replaced by an initiative focused on youths from troubled backgrounds.
"The president of the republic has decided to replace Article 8 of the law on equal opportunities with measures in favor of the professional insertion of young people in difficulty," a statement from Chirac's office said.
The move comes as a terrible blow to Prime Minister Dominique de Villepin, who introduced the CPE and vowed to stand firm regardless of pressure from students and the unions.
The CPE would have made it easier for companies to hire and fire workers under 26.
It was introduced to tackle France's number one social problem: that one young person in five is unemployed.
Its opponents claimed it would have created systemic insecurity by making it more difficult for young workers to get a mortgage, for instance. In addition, they said the CPE would scupper France's founding principles of solidarity and equality by treating workers differently depending on their age.
De Villepin's authority has been gravely damaged by the crisis and he may not recover from the government's latest turnabout. He is scheduled to speak later Monday. At 25%, his approval rating has halved since December, according to a poll by Institut LH2.
Chirac, 73, also likely won't emerge unscathed from a confrontation that fanned weeks of disruptions at universities and demonstrations gathering 1 million to 3 million people.
He begins his 11th year as president next month with approval ratings at three-year lows.