Abstract

The case examines the new job law ‘CPE’ and how it could have led to more flexibility in the French labor market. However, protests, strikes and demonstrations in France by millions of students and workers that paralyzed the country led to its repeal. The case highlights the reasons for the failure of the French government in getting the law accepted by its people and its implications thereof. It elaborates on the French labor market and the prevailing employment conditions in the country. The case also discusses the various employment contracts in France and examines how the changing global business environment has led to difficulties in continuing with the labor-friendly French social model.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Study the implications of higher wages and employment protection laws on the French labor market
• Understand the growth and development of the European social model
• Study the conditions that led the French government to take an increasing role in the state economy and regulate the labor market.

Keywords

French Labor Market, Contrat Premiere Embauche (CPE), Job Law, Social Security, Labor Productivity, Minimum Wage, Working Hours, Unemployment Rate, Unemployment Allowance, Social Unrest, Labor Reforms, Employment Contracts in France