Brigitte CHARLES-PAUVERS Franco-Chinese International Management Center

1. WORK IN FRANCE : MAJOR CHANGES Brigitte CHARLES-PAUVERS Franco-Chinese International Management Center Institute of Business Administration University of Nantes (France) Research group : MODELISACTION

2. THE STRUCTURE OF THE PRESENTATION • Productive and employment landscape • Main characteristics of work in France • Major changes in the companies’ work politics • Workers and companies : flexibility / organizational commitment • Conclusion

3. INTRODUCTIONFRANCE : a small but wealthy country

4. THE STRUCTURE OF THE PRESENTATION • Productive and employment landscape • Main characteristics of work in France • Major changes in the companies’ work politics • Workers and companies : flexibility / organizational commitment • Conclusion

5. PRODUCTIVE AND EMPLOYMENT LANDSCAPEEU : a majority of small and medium size companies Companies under 250 employees 2/3 of total employment

6. PRODUCTIVE AND EMPLOYMENT LANDSCAPEA contrasted production landscape • A policy of merger between large companies : Renault-Nissan , Vivendi-Universal, Total-Elf-Fina • In France, 1/3 of companies < 500 employees realize 29 % of exports and 22 % of imports

7. PRODUCTIVE AND EMPLOYMENT LANDSCAPEMore unemployment in EU than in the USA

8. PRODUCTIVE AND EMPLOYMENT LANDSCAPE Services develop in FRANCE Services : 42.6 % in 1999 +4 % in 98-99 Industry : -0.9 % in 98-99

9. PRODUCTIVE AND EMPLOYMENT LANDSCAPE An economy increasingly open to women women at work : 42.1 % in 1975 48.1% in 2000

10. THE STRUCTURE OF THE PRESENTATION • Productive and employment landscape • Main characteristics of work in France • Major changes in the companies’ work politics • Workers and companies : flexibility / organizational commitment • Conclusion

11. WORK IN France : MAIN CHARACTERISTICSThe role of the French Government • The French government plays a fundamental role in the companies’ employment policy : • numerous contracts are subsidized : Contrat emploi-jeune • a large part of the social bargaining framework is lie down by the government : “35h laws”

12. WORK IN France : MAIN CHARACTERISTICSMinimum salaries SMIC, low salary policies 6.5 Euros/h in France5.8 Euros/h in USA

13. WORK IN France : MAIN CHARACTERISTICSManpower cost Manpower cost in France + 20% / USA

14. WORK IN France : MAIN CHARACTERISTICSGradual decline of the permanent and full-time job Casual work is developing

15. WORK IN France : MAIN CHARACTERISTICSPermanent worker‘s status is splitting up Short term workers : 11% 1985-2000 : temp work X 5 short term X 3

16. WORK IN France : MAIN CHARACTERISTICSPart time work develops Part time work : 18%

17. WORK IN FRANCE : MAIN CHARACTERISTICSThe role of trade unions • An increasing gap between : • trade unions negotiating major agreements • workers (8% are union members)

18. THE STRUCTURE OF THE PRESENTATION • Productive and employment landscape • Main characteristics of work in France • Major changes in companies’ work policies • Workers and companies : flexibility / organizational commitment • Conclusion

19. MAJOR CHANGES IN COMPANIES’ WORK POLICIESManpower flexibility : a multi faceted concept • An increasing need for flexibility : internal and external, quantitative and functional • Companies show caution in recruitment : permanent use of extra hours, and part time work inside the company ; the quasi permanent use of limited term contract

20. MAJOR CHANGES IN COMPANIES’ WORK POLICIES reducing working time to 35h is compulsory • The legal obligation to reduce the time work to 35 H per week, with a collective bargaining in the company • An opportunity to reexamine the strategy of the company, the productive process and to reorganize the work, without increasing the labor cost with different possibilities, : • time modulation, based on a definite period : a cycle , depending on the seasonal characteristics ; “annualization” • reduction of the daily time of work • larger opening time

21. THE STRUCTURE OF THE PRESENTATION • Productive and employment landscape • Main characteristics of work in France • Major changes in companies’ work policies • Workers and companies : flexibility / organizational commitment • Conclusion

22. WORKERS AND COMPANIES : FLEXIBILITY / ORGANIZATIONAL COMMITMENT Some fundamental consequences • Three categories of workers move in : • hot skills, • multifunctional permanent, • McDo workers : short term, temporary, subcontractors • HRM policies : more and more individualized and adapted to the category, specially toward the core one : training, career, payment

23. WORKERS AND COMPANIES : FLEXIBILITY / ORGANIZATIONAL COMMITMENT Some workers asking for different working conditions

24. WORKERS AND COMPANIES : FLEXIBILITY / ORGANIZATIONAL COMMITMENT Contractual relationship prevails • A sort of “commercial contract “ characterizes the relationship between core employees and companies • Their overall organizational behavior looks like a consumer’s : individualistic, ready to leave the company

25. WORKERS AND COMPANIES : FLEXIBILITY / ORGANIZATIONAL COMMITMENT Present difficulties for companies • a shortage of talents • a threat of leaving : 10 %of executives moved in 2000 • a competition in the social and tax fields • difficulties to create and maintain a collective

26. THE STRUCTURE OF THE PRESENTATION • Productive and employment landscape • Main characteristics of work in France • Major changes in companies’ work policies • Workers and companies : flexibility / organizational commitment • Conclusion

27. CONCLUSION • In a a global context of redefinition of the companies’ boarders : • - subordinates are becoming assistants • - the hierarchical channel is disrupted • The employees’ mobility is necessary • - they move inside the organization • - their skills are the only criteria of evaluation (different from the post qualification) • The flexibility is accepted • - external flexibility • - work and organizational flexibility • The trade unions are again in the news • - they negociate a lot of agreements • - people come out on strike vicariously (public employees) • Social Europe is under construction ... but laws and practices are still local

28. CONCLUSION Is there still any French exception ?