No change please, we are French

It is not what comes to our mind when we think of Paris. Huge number of youths on streets, tear gas, police using guns shooting indelible inks and closure of Eiffel tower. This was the last tuesday in Paris with live images beamed across the globe. It was the biggest demonstration by the French students, trade union workers and also employees of Air France after the May, 1968 revolt. This comes right after the suburban riots by unemployed immigrant youths couple of months back.

France seems to be hogging the European news space for one reason or other. The students participating in the student were spurting out vitriol for the government of Prime Minister Dominique de Villlepin. Those participating in the strike are comparing themselves with the demonstrators of 1968 riot. On a closer look there is nothing common between them except the demonstrations. Students and trade union workers were demonstrating for change in 1968 and the present one is to stop change.

The controversy started with Prime Minister De Villepin bringing a new law which would allow employers to easily hire and fire workers under the age of 26 years for two years. The labour laws in France are very rigid and each job comes with life time guarantee and loads of social benefits. It is impossible for any employer to fire their workers even if they go bust. This has made things so difficult for French employers, already under intense competitive pressure due to globalization, that they are not hiring new workers and so jobs are not created. The average unemployment in France is around 22% while the European average would be around 6 to 7%. This new law is supposed to allow employers have flexible labour policy which in turn will create more jobs.

The would be workers in France still demand life time secure job with all sort of benefits like under 40 work hours per week, health care and generous pension benefit. This was all made possible with the capitalism in France which made them one of the richest countries of world and housed many of world best corporations. The sphere of influence of capitalism which was extended from North America to Western Europe has shifted since then. This shift has put shining jewels of that era of capitalism of that era under intense pressure from agile enterprises of new era of capitalism. These enterprises have access to cheap labour, flexible labour policies and less focus on social sector spending. The student population of France is still not able to comprehend this important change and they are resisting it. They don’t understand that the present threat is not to the benefits but the very job which gives them these benefits.

All this has put much at stake for the political leadership of France which should rise to the occasion and not adopt an evasive approach as it has been doing. Prime minister should not capitulate to the demonstrators though it is not easy. If he backs off then France will have to face more problems in future.