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In October 2002, against a background of increasing job losses, the French government appointed Claude Viet to the new position of 'redundancy supremo'. His role is to set up an interministerial body to coordinate government action addressing the impact of company restructuring and its effect on employees.
The current economic downturn is resulting in rising unemployment and an increase in the number of redundancy plans (plans sociaux), which usually accompany workforce reductions. The number of redundancies in the first half of 2002 was up by 36% on the same period in 2001, and the deficit of the UNEDIC unemployment insurance fund deficit is forecast to reach EUR 3.5 billion in 2002 (FR0207102N).
In his Bastille Day television address to the nation on 14 July 2002, the President of the Republic, Jacques Chirac, referred to the development of a special mechanism to help address economic change more effectively. This included the appointment of a person to act as what the press have dubbed 'the redundancy supremo' ('Monsieur licenciements') or 'the redundancy plan supremo' ('Monsieur plans sociaux'). However, it proved difficult to find someone capable of taking on this role.
The new conservative government pondered long and hard over several job descriptions, since the ideal candidate had to possess varied attributes, including practical experience as head of a company used to dealing with corporate restructuring and 'political sensitivity'. As a result, the appointment was not made until 17 October 2002, when the former director general at the Post Office (La Poste), Claude Viet, was given the job. His mission statement, developed by three different ministers - François Fillon (Social Affairs and Labour), Francis Mer (Economy, Finance and Industry) and Jean Paul Delevoye (Civil Service, State Reform and Town and Country Planning) - requires him to 'anticipate' developments more effectively and stay abreast of 'technological innovation and international competition', two factors with a potentially 'significant and even brutal impact on employees, their families and regions where companies are located'.
An interministerial task force will be set up by Mr Viet, to be responsible for coordinating government action to address the social impact of corporate restructuring and its consequences for employees. It is to be made up mainly of representatives from the three ministries concerned. The task force’s terms of reference state that this flexible body will 'function as part of a network to develop new expertise in the areas of government social, economic and physical planning policies'. It will work in 'close cooperation with the social partners and others involved on the ground'. Those directly involved in local problems should thus be able to benefit from support at regional level.
In a radio interview, Minister Fillon stressed that this task force will be 'replicated in the regions so as to give all actors in development, government services, local communities and trade unions the opportunity to participate in the management of redundancy plans and, in particular, in employee redeployment and the rehabilitation of industrial areas'. This new approach is intended to contrast sharply with that of the previous Socialist-led government (FR0107172F). The Minister underscored this difference, stating that 'we do not believe that redundancies can be forbidden. Companies have to do what they have to do to adapt. But we believe that we can do better in redeploying workers and assisting them in finding employment.' The Minister focused on 'human means' and more particularly on 'dialogue with the trade unions'.
The creation of this task force should be linked to a government decision to suspend seven articles of the previous government's 'social modernisation law' (FR0201102F) for a period of 18 months. Most of the articles concerned deal with redundancy procedures, including consultation with employee representatives on the economic and social aspects of redundancy plans. Other articles suspended include those pertaining to mediation between employers and employee representatives, as well as those granting extra powers to the Ministry of Labour’s local offices at the département level.
Mr Viet, the new 'redundancy supremo', is scheduled to table his initial initiatives by the end of 2002. This will undoubtedly provide a better idea of how coherent the new approach is going to be.