France’s parliament approved a series of welfare cuts yesterday despite abstentions by left-wing deputies, while a major teachers’ union became the third group to boycott a labour forum hosted by President Francois Hollande, reports the Gulf Times.
With 33 Socialist deputies abstaining, parliament passed a welfare funding bill for 2014 that substantially cuts payroll taxes for companies as part of Hollande’s efforts to improve their competitiveness and boost hiring.
But the vote was overshadowed by walkouts from the two-day labour forum, which highlighted anger over a policy which many on the left say amounts to a gift for companies, with no guarantee they will respect promises to create jobs.
Prime Minister Manuel Valls, who had touted the forum as a launchpad for reform, announced that the government would use €540mn ($737mn) – about half of which is to be drawn from European Union funds – to fight youth unemployment.
He also confirmed plans to lower income taxes for the middle class in the 2015 budget, but signalled little progress on plans to simplify the labour code.
“We need to win the battle for jobs, most of all for our youths,” Valls said in a speech at the end of the forum.
On the union boycott, Valls said: “It’s their right, but I regret this attitude. It does not help get things done.”
“I am not minimising this gesture,” he said, but warned unions that a “prolonged refusal to engage in dialogue would be an incomprehensible position.”
The €540mn euros for youth jobs will be used to boost job centre resources for the poorly qualified, fund personal projects, improve job training and help firms hire more apprentices with the aim of reaching 500,000 by 2017, he added.
Read more of this Reuters report published by the Gulf Times.