Emmanuel Macron: Domestic Policy with the Emphasis on Labor Reform POLICY PAPER / NOVEMBER 2017 CHRISTOPHER DOWNS Edited by MICHAEL ERIC LAMBERT Emmanuel Macron: Domestic Politics with the Emphasis on Labor Reform Policy Paper – Christopher Downs, November 2017 Emmanuel Macron, since the time of celebration of Bastille Day may serve as Napoléon Ier, is the youngest head of the a prime example of said efforts. This is due French government. Winning a decisive to the fact that Macron, during the visit, victory in May 2017, he defeated the tried to pose as a peace broker between the populist far-right candidate Marine Le Pen US president and his European critics; with a 66 % of the electoral vote. However, however, to what extent it was successful is the voter turnout was a mere 74 %, the yet to be seen. lowest since 1969. Moreover, the president’s counterpart won over 11 million Even though Macron’s foreign policies tend votes, which is a considerable amount. The to “bear fruit”, his approval ratings have very fact that Le Pen did so well in the plummeted starting August 2017 showing presidential elections is a sobering less support from the French and especially statement about the state of affairs in the from his own supporters. Thus, the country. question of why Macron’s approval ratings are dropping so fast will be the focus of the Therefore, Macron has a difficult task in analyses. Furthermore, the domestic issues front of him to prove that he is the leader and policies may be attributed to the which France deserves. In the early stages president’s rapid fall from favor of the of his presidency, the leader of France French voters. presented the country as a major player in European politics once again. During his Macron´s Domestic Issues first EU summit, he urged serious economic reform and strong diplomatic focus on Macron´s foreign policy has a certain French – German relationship, thus, degree of success; however, the domestic France certainly aspires to be a major policies and reforms have proven to be the agenda setting player in the European biggest problem. Even though Macron’s Union. Moreover, with the G7 and NATO party [La République en Marche] won summits, Macron tries diligently to prove 308/577 seats during the parliamentary himself as a capable leader in the elections, it was criticized for its amateurish geopolitical arena. Trump’s visit during the approach to legislation, due to most of the elected MPs being inexperienced in the POLICY PAPER | November 2017 legislative process. This caused a rift among substantiate the president’s fall from favor. the French population, with some people One might argue it is his inexperience; arguing that the young leader may not be however, the main issue of dispute most ready to bear the burden of leadership. likely be the effort to reform the nation’s Whist others feared imminent problems labor law. during the implementation of reforms. Following the election a temporary Labour Law Reform Government was formed from which three (Code du Travail) members of the cabinet, Defense Minister Macron’s labor reforms ted to be Sylvie Goulard, Minister of Justice François controversial and they are now being Bayrou, and Minister of European affairs drastically altered by the president. Marielle de Sarnez resigned amid Furthermore, it aims to entirely reorganize allegations of illegal party funding. the labor market, which is traditionally protective of worker’s rights, these new Furthermore, the resignation of the reforms move the power into the hands of military Chief Général Pierre de Villiers employers and companies. Macron believes proved Macron’s ambitions to maintain the reforms will stimulate the French order within his government. The economy and lower unemployment as it commander departed due to a cut in was 9,5 % in April, whereas in Germany and military spending - 850 million euros – to Great Britain it was below 5 %. Moreover, which Villiers responded with a forced the reforms were “meant to inject” greater resignation letter. Macron’s pro-European flexibility into the job market and kickstart views regarding the future of Defence is hiring after decades of high unemployment. another reason as De Villiers focuses more The new Labor law consists of a wide array on National Defence and less on the idea of of points, however, there are five which an EU Army. pose as the main issue for labor unions and employees alike. From the information stated above, one can clearly witness the rift among Macron’s A firm’s global economic health success. Foreign policies tend to remain as cannot be used to oppose plans to a strong side of the president’s efforts; fire workers however, the president stumbled in the In France, if a company wished to lay off domestic issues which proved to be the multiple employees it needed the approval reason of rapid decline in his approval of the chamber of commerce. Therefore, ratings. The quarrels and poor approach of a judge was able to argue, “that the the MPs of his party, scandals within the company’s global operations were cabinet and disputes with the army leaders, profitable and the dismissal of employees POLICY PAPER | November 2017 was unjustified,” and could deny the Changes to short-term contracts, but company's action and penalize them for not to long-term ones said action. However, with the new reform, Short term contracts (CDD), their length the judge is able to refer only the company’s and times they could be renewed operation within France when consulting (maximum twice) are set by law. The on layoff hearings. system has been constantly abused by employers and firms, with employees being Topics of negotiation hired merely on the short-term contracts to Topics which were set by the law will now reduce the costs of hiring a worker for a be set by the specific companies. long-term contract (CDI). Under the new Furthermore, internal negotiations within regulations, companies will have the power businesses which employing less than 20 to determine the amount of renewable CDD workers will not automatically get a shop contracts, not the government. Moreover, steward. as stated by Vinocur, “for example, the newspaper industry could decide the Collective breaking of agreement duration of a CDD will be 4 months, and can be renewed six times.” However, the The reform creates a “device for government is reluctant to modify the CDI collectively-agreed breaking of contract,” contracts due to the “inside-out” labor which previously was only brokered on the system where a certain number of workers employer – employee basis. Based on the receive good job security, whereas other new law, a company’s administration will struggle from one CDD agreement to be able to create frame for voluntary another. Moreover, all forms of credit, redundancies. including bank credit, are heavily conditioned on the possession of a CDI Red tape slashed for companies with contracts. more than 50 employees Currently, if a company hires more than 50 The public sector of the French labor employees in France, it must follow market is also in turmoil. Like other multiple requirements, most notable being previous French heads of state, Emmanuel the creation of health and safety Macron plans to drastically reduce the committees to which representatives must number of public sector employees by 120 be elected. Under the new reform, these 000 in the next five years. One in five committees and other requirements will be workers are employed by the public sector, merged into one unit, thus, the company which is considerable amount of 5.4 million will reduce costs and the workers will not be employees. State employees, from nurses to as well represented. teachers, have voiced their concerns during POLICY PAPER | November 2017 massive public demonstrations. The largest the office. These opponents claim he is labor union, The French Democratic unable to satisfy the needs of all, even Confederation of Labor (CFDT), stated “We though that is usually considered to be want our voices to be heard after months impossible. Macron’s intentions are to and months of attacks against the public modernize the labor market, to be sector and its workers.” In September, Paris competitive on the world stage, and to was embroiled in protest when over 132 boost the economy; however, the way he 000 protesters arrived in the capital to executed the labor reforms is questionable. voice their concern alongside the unions. Moreover, doubts about Macron’s true The president signed an executive order, intentions could cause controversy and pushing the labor reform into action. widen the lack of interest in traditional political parties. Thus, the political From the information stated above, one can spectrum in France could become even observe a drastic change from pro union more divided between pro-EU (Macron) based laws to a more capitalist form of and anti-EU (Le Pen) parties. Furthermore, labor regulation. Experts claim it would the Far-Left (Mélenchon) and Far-Right have been profitable to strengthen the (Le Pen) political movements could also position of labor unions instead of elevate their influence among society. circumventing them, and by doing so, the French voters would feel a larger support Conclusion from the head of state in the matters of labor law reform. By evading the labor To conclude why Macron’s approval unions, which are formed to protect the ratings have plummeted, one has to interests of the employees, it seems analyse the information provided Macron’s agenda is aimed to benefit more above. Even though the President has a company executives and his electoral strong foreign policy towards the donors.