Corrected: Spain gov’t preparing own labor reform plan: report

MADRID (Reuters) – Spain’s government has almost given up on securing a deal with unions and employers on a reform of rigid labor market rules and is preparing its own plan, newspaper El Pais reported on Monday without citing sources.

A deadline for the government to agree a labor reform deal with unions and employers had been set for Monday, but the labor ministry said on Saturday it had extended it by a week.

“The government has almost lost all hope of reaching a deal with unions and the employers’ association over the labor reform. Today, they are meeting … with very few expectations of success,” the newspaper said.

Under plans being mulled by the government, left-leaning daily El Pais said companies would have the possibility to make greater use of cheap work contracts for a broader range employees.

There was no immediate official government comment on the El Pais report.

At the moment, special contracts allow some workers to be hired on the basis of reduced redundancy payments — 33 days of salary per year worked instead of the normal 45 days — in the event they are later fired.

The government would try to extend this through a legal decree that would have to be voted on in parliament, but which would not allow opposition lawmakers to table amendments.

Imposing a deal without the agreement of the unions would likely set the ruling Socialists on a collision course with their traditional allies.

Spain’s two largest unions have threatened a general strike if the government tries to impose labor reform.

Companies in Spain have long complained that burdensome hiring and firing costs are a disincentive to recruiting workers, exacerbating the government’s high unemployment rate which has hit 20 percent.

(Reporting by Sarah Morris; Editing by Sonya Hepinstall)

ROUNDUP: French workers strike and protest amidst rising tension

ROUNDUP: French workers strike and protest amidst rising tension Paris – A one-day general strike of French workers from the private and public sectors to protest the economic policies of President Nicolas Sarkozy began late Wednesday when employees of the national railway network SNCF walked off their jobs.

The SNCF said that only about half of its scheduled long-haul and regional trains on average were expected to be running during the strike.

In addition, the commuter rail service between Paris and its suburbs was also expected to be severely disrupted, but the capital’s bus and metro service would probably be little affected.

Thursday is also likely be a holiday for most French primary and secondary school students, as union officials say that some 60 per cent of teachers would be striking.

Street protests were scheduled to take place in more than 210 cities throughout France, significantly more than during this year’s first nationwide labour protest, on January 29.

The second nationwide job action of the year takes place amidst an atmosphere of mounting anger after a series of controversial factory closures and layoffs in France by German tyre manufacturer Continental, Japanese electronics giant Sony and French petroleum group Total.

Statements made by the head of the employers’ association MEDEF, Laurence Parisot, served only to fuel the tension.

On Tuesday, Parisot slammed union leaders for their behaviour, accusing them of “demagogy” and “creating illusions” by organizing the strikes and protests.

Bernard Thibault, the powerful head of the CGT trade union, responded by accusing Parisot of “demonstrating throwback behaviour and making the situation more tense.”

The head of the opposition Socialists, Martine Aubry, called Parisot’s statements “indecent and … perhaps even undignified.”

Sarkozy’s refusal to raise tax ceilings for France’s highest earners, urged even by members of his own centre-right UMP party, has also contributed to the increasingly sour mood here.

“I was not elected to raise taxes,” Sarkozy said Tuesday.

However, more and more French voters are turning against the president, with a recent survey showing that a large majority of the French have no confidence in his economic policies, and three of four saying that the nationwide job action is justified.

The strike is to begin late Wednesday when employees of the national rail network SNCF walk off their jobs.

According to union figures, some 2.5 million people took to the streets to demand a change in the government’s economic policies that day.

The scale of the demonstrations impressed even Sarkozy, who shortly thereafter announced aid in the form of tax relief and other measures for low-income families worth 2.6 billion euros.

There will be no such response this time, Prime Minister Francois Fillon said, noting that because of its bailout packages for the French banking and car manufacture sectors the government could not afford to incur any more debt. (dpa)

French workers to strike and protest amidst rising tension

Paris – Millions of French workers from the public and private sectors were expected to take part in a one-day strike and nationwide demonstrations to protest the economic policies of President Nicolas Sarkozy and his government beginning late Wednesday.

The second nationwide job action of the year takes place amidst an atmosphere of mounting anger following a series of controversial factory closures and layoffs in France by German tyre manufacturer Continental, Japanese electronics giant Sony and French petroleum group Total.

Statements made by the head of the employers’ association MEDEF, Laurence Parisot, served only to fuel the tension.

On Tuesday, Parisot slammed union leaders for their behaviour, accusing them of “demagogy” and “creating illusions” by organizing the strikes and protests.

Bernard Thibault, the powerful head of the CGT trade union, responded by accusing Parisot of “demonstrating throwback behaviour and making the situation more tense.”

The head of the opposition Socialists, Martine Aubry, called Parisot’s statements “indecent and … perhaps even undignified.”

Sarkozy’s refusal to raise tax ceilings for France’s highest earners, urged even by members of his own centre-right UMP party, has also contributed to the increasingly sour mood here.

“I was not elected to raise taxes,” Sarkozy said Tuesday.

However, more and more French voters are turning against the president, with a recent survey showing that a large majority of the French have no confidence in his economic policies, and three of four saying that the nationwide job action is justified.

The strike is to begin late Wednesday when employees of the national rail network SNCF walk off their jobs. The SNCF announced that about half of its scheduled long-haul and regional trains on average were expected to be running during the strike.

In addition, commuter rail service between Paris and its suburbs is also expected to be severely disrupted, but the capital’s bus and metro service will probably be little affected.

Thursday will likely be a holiday for most French primary and secondary school students, as union officials say that some 60 per cent of teachers would be striking.

In addition, protests were scheduled to take place in more than 210 cities throughout France, significantly more than during this year’s first nationwide labour protest, on January 29.

According to union figures, some 2.5 million people took to the streets to demand a change in the government’s economic policies that day.

The scale of the demonstrations impressed even Sarkozy, who shortly thereafter announced aid in the form of tax relief and other measures for low-income families worth
2.6 billion euros.

There will be no such response this time, Prime Minister Francois Fillon said, noting that because of its bailout packages for the French banking and automobile sectors the government could not afford to incur any more debt. (dpa)

Policeman shot on La Reunion as economic protests turn violent

Paris – Bands of roving youths set fires to cars and trash bins, looted stores and battled police on the French overseas territory of La Reunion as a demonstration protesting the high cost of living degenerated into violence, local media reported Wednesday.

One policeman was injured by gunfire and 20 received other injuries in a disturbing reminder of the riots that shook French suburban ghettos in the fall of 2005. French media reported that 22 people were arrested.

The incidents occurred late Tuesday after thousands of people marched in the streets of Saint-Denis, the capital of this island in the Indian Ocean, to demand salary hikes of 200 euros (255 dollars) a month for low-wage earners and price cuts of 20 per cent for some 500 products.

After the Caribbean departments of Guadeloupe and Martinique, La Reunion is the latest French overseas department to be struck by strikes and protests because of the high cost of living.

On the island of Martinique, protests went into their fifth week on Wednesday, despite an offer by the employers association MEDEF for a wage rise of 200 to 250 euros a month. (dpa)