B. Charles-Pauvers, IAE Nantes- april 2001 1 Brigitte CHARLES-PAUVERS Franco-Chinese International...

B. Charles-Pauvers, IAE Nantes- april 2001 1

Brigitte CHARLES-PAUVERSFranco-Chinese International Management CenterInstitute of Business AdministrationUniversity of Nantes (France)Research group : MODELISACTION

WORK IN FRANCE : WORK IN FRANCE : MAJOR CHANGESMAJOR CHANGES


• Productive and employment landscape

• Main characteristics of work in France

• Major changes in the companies’ work politics

• Workers and companies : flexibility / organizational commitment

• Conclusion

THE STRUCTURE OF THE PRESENTATION


inhabitants

377

272

127

60

0

50

100

150

200

250

300

350

400

450

France EU USA Japan

Million

GNP/inhabitant

22258 21157

31916 32205

0

5000

10000

15000

20000

25000

30000

35000

40000

France EU USA Japan

euros

INTRODUCTIONFRANCE : a small but wealthy country






• Conclusion



•

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Nb companies total employment turnover

>=25050 to 24910 to 491 to 90

PRODUCTIVE AND EMPLOYMENT LANDSCAPEEU : a majority of small and medium size companies

Companies under 250 employees

2/3 of total employment


•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

PRODUCTIVE AND EMPLOYMENT LANDSCAPEA contrasted production landscape


PRODUCTIVE AND EMPLOYMENT LANDSCAPEMore unemployment in EU than in the USA

0

1

2

3

4

5

6

7

8

9

10

France EU USA Japan

%


PRODUCTIVE AND EMPLOYMENT LANDSCAPE

Services develop in FRANCE

0

2

4

6

8

10

12

14

16

18

1949 1954 1959 1964 1969 1974 1979 1984 1989 1994 1999

SERVICES

AGRICULTURE

INDUSTRY & BUILDING

million people

Services : 42.6 % in 1999

+4 % in 98-99

Industry : -0.9 % in 98-99


40

50

60

70

80

90

100

activity rate (%)

female activity rate

% people 15-64

PRODUCTIVE AND EMPLOYMENT LANDSCAPE

An economy increasingly open to women

women at work : 42.1 % in 1975 48.1% in 2000






• Conclusion



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”

WORK IN France : MAIN CHARACTERISTICSThe role of the French Government


0

200

400

600

800

1000

1200

1400

Luxem

burg

Belgiu

m

Nether

lands

France

United K

ingdom

USA

Japan

Spain

Greec

e

Portugal

1999 - minimum monthly wages (euros)

1997 - % mean earnings

euros %

0

20

40

60

80

100

WORK IN France : MAIN CHARACTERISTICSMinimum salaries

SMIC, low salary policies 6.5 Euros/h in France5.8 Euros/h in USA


WORK IN France : MAIN CHARACTERISTICSManpower cost

hourly manpower cost (euros)

0 5 10 15 20 25 30

Germany

Belgium

Austria

Denmark

France

Netherlands

Finland

Luxemburg

United Kingdom

Italy

Spain

Ireland

Greece

Portugal

Japan

USA

Manpower cost in France + 20% / USA


0

2

4

6

8

10

12

1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

%

WORK IN France : MAIN CHARACTERISTICSGradual decline of the permanent and full-time job

Casual work is developing


WORK IN France : MAIN CHARACTERISTICSPermanent worker‘s status is splitting up

0

500

1000

1500

2000

2500

march 85 march 98 march 99 march 2000

prenticeship

state helped

short term

temporary work

thousand people

Short term workers : 11%

1985-2000 : temp work X 5

short term X 3


0 10 20 30 40 50 60 70 80

EU (15)

Netherlands

United Kingdom

Sweden

Germany

Denmark

Belgium

Austria

France

Ireland

Spain

Finland

Portugal

Italy

Greece

women men

%

WORK IN France : MAIN CHARACTERISTICSPart time work develops

Part time work : 18%


WORK IN FRANCE : MAIN CHARACTERISTICSThe role of trade unions

0

10

20

30

40

50

60

70

80

90

100

France USA Japan Netherlands UK Germany Sweden Italy Spain

60s

1985

1995

% of active population

An increasing gap between :trade unions negotiating major

agreements workers (8% are union members)




• Major changes in companies’ work policies


• Conclusion



• 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

MAJOR CHANGES IN COMPANIES’ WORK POLICIESManpower flexibility : a multi faceted concept


• 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

MAJOR CHANGES IN COMPANIES’ WORK POLICIES reducing working time to 35h is compulsory






• Conclusion



•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

WORKERS AND COMPANIES : FLEXIBILITY / ORGANIZATIONAL COMMITMENT

Some fundamental consequences



Some workers asking for different working conditions

0

10

20

30

40

50

60

70

80

90

100

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

work full time

work more

% of part timers


•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


Contractual relationship prevails


• 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


Present difficulties for companies






• 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

CONCLUSION


Is there still any French exception ?

CONCLUSION

B. Charles-Pauvers, IAE Nantes- april 2001 1 Brigitte CHARLES-PAUVERS Franco-Chinese International...

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