1. B. Charles-Pauvers, IAE Nantes- april 2001 1 Brigitte CHARLES-PAUVERS Franco-Chinese International Management Center Institute of Business Administration University of Nantes (France) Research group : MODELISACTION WORK IN FRANCE : MAJOR CHANGES

2. B. Charles-Pauvers, IAE Nantes- april 2001 2 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

3. B. Charles-Pauvers, IAE Nantes- april 2001 3 INTRODUCTION FRANCE : a small but wealthy country

4. B. Charles-Pauvers, IAE Nantes- april 2001 4 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

5. B. Charles-Pauvers, IAE Nantes- april 2001 5 PRODUCTIVE AND EMPLOYMENT LANDSCAPE EU : a majority of small and medium size companies Companies under 250 employees 2/3 of total employment

6. B. Charles-Pauvers, IAE Nantes- april 2001 6 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 LANDSCAPE A contrasted production landscape

7. B. Charles-Pauvers, IAE Nantes- april 2001 7 PRODUCTIVE AND EMPLOYMENT LANDSCAPE More unemployment in EU than in the USA

8. B. Charles-Pauvers, IAE Nantes- april 2001 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. B. Charles-Pauvers, IAE Nantes- april 2001 9 PRODUCTIVE AND EMPLOYMENT LANDSCAPE An economy increasingly open to women women at work : 42.1 % in 1975 48.1% in 2000

10. B. Charles-Pauvers, IAE Nantes- april 2001 10 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

11. B. Charles-Pauvers, IAE Nantes- april 2001 11 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 CHARACTERISTICS The role of the French Government

12. B. Charles-Pauvers, IAE Nantes- april 2001 12 WORK IN France : MAIN CHARACTERISTICS Minimum salaries SMIC, low salary policies 6.5 Euros/h in France 5.8 Euros/h in USA

13. B. Charles-Pauvers, IAE Nantes- april 2001 13 WORK IN France : MAIN CHARACTERISTICS Manpower cost Manpower cost in France + 20% / USA

14. B. Charles-Pauvers, IAE Nantes- april 2001 14 WORK IN France : MAIN CHARACTERISTICS Gradual decline of the permanent and full-time job Casual work is developing

15. B. Charles-Pauvers, IAE Nantes- april 2001 15 WORK IN France : MAIN CHARACTERISTICS Permanent worker‘s status is splitting up Short term workers : 11% 1985-2000 : temp work X 5 short term X 3

16. B. Charles-Pauvers, IAE Nantes- april 2001 16 WORK IN France : MAIN CHARACTERISTICS Part time work develops Part time work : 18%

17. B. Charles-Pauvers, IAE Nantes- april 2001 17 WORK IN FRANCE : MAIN CHARACTERISTICS The role of trade unions An increasing gap between : trade unions negotiating major agreements workers (8% are union members)

18. B. Charles-Pauvers, IAE Nantes- april 2001 18 Productive and employment landscape Main characteristics of work in France Major changes in companies’ work policies Workers and companies : flexibility / organizational commitment Conclusion THE STRUCTURE OF THE PRESENTATION

19. B. Charles-Pauvers, IAE Nantes- april 2001 19 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 POLICIES Manpower flexibility : a multi faceted concept

20. B. Charles-Pauvers, IAE Nantes- april 2001 20 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

21. B. Charles-Pauvers, IAE Nantes- april 2001 21 Productive and employment landscape Main characteristics of work in France Major changes in companies’ work policies Workers and companies : flexibility / organizational commitment Conclusion THE STRUCTURE OF THE PRESENTATION

22. B. Charles-Pauvers, IAE Nantes- april 2001 22 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

23. B. Charles-Pauvers, IAE Nantes- april 2001 23 WORKERS AND COMPANIES : FLEXIBILITY / ORGANIZATIONAL COMMITMENT Some workers asking for different working conditions

24. B. Charles-Pauvers, IAE Nantes- april 2001 24 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 WORKERS AND COMPANIES : FLEXIBILITY / ORGANIZATIONAL COMMITMENT Contractual relationship prevails

25. B. Charles-Pauvers, IAE Nantes- april 2001 25 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 WORKERS AND COMPANIES : FLEXIBILITY / ORGANIZATIONAL COMMITMENT Present difficulties for companies

26. B. Charles-Pauvers, IAE Nantes- april 2001 26 Productive and employment landscape Main characteristics of work in France Major changes in companies’ work policies Workers and companies : flexibility / organizational commitment Conclusion THE STRUCTURE OF THE PRESENTATION

27. B. Charles-Pauvers, IAE Nantes- april 2001 27 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

28. B. Charles-Pauvers, IAE Nantes- april 2001 28 Is there still any French exception ? CONCLUSION