France’s parliament passed a law on Tuesday imposing tough penalties on companies that shut down operations deemed economically viable, as President Francois Hollande struggles to save jobs in a declining industrial sector.
The law has drawn sharp criticism from business leaders who say it will hit investment in France by adding to the cost and legal complexity of winding down operations.
It is dubbed the “Florange” law after a steelworks in northern France where Hollande, then campaigning for president, told workers last year he would pass legislation to protect their jobs in case of a shutdown.
The law, passed by a centre-left majority in the lower house, came too late to stop steelmaker ArcelorMittal shutting two blast furnaces at Florange in July.
But the Socialist leader has pushed it through as part of efforts to regain support from blue-collar workers, disappointed by what many perceive to be market-friendly economic reforms, ahead of municipal and European elections next year.
The law requires firms with more than 1,000 employees to prove they have exhausted options for selling a plant before closing it.