France’s Macron poised to unveil ‘mother of all reforms’, overhauling labour rules

The French government on Thursday unveils a highly anticipated labour reform plan seen as a crucial test of new President Emmanuel Macron’s reform mettle.

Aimed at making it easier to hire and fire workers in order to fight stubbornly high unemployment, it will cap dismissal awards, allow workplace referendums and extend the list of issues bosses can negotiate directly with their staff.

The first major reform since Macron was elected in May on a pledge to shake up a sluggish economy, the plan is set to be followed by further difficult bills in the next months, including on pensions, unemployment benefits and public finances.

Governments of all political stripes have for decades tried to overhaul complex labour rules in France, where the labour code now runs more than 3,000 pages. But they have eventually watered down plans in the face of street protests.

“This is the mother of all reforms; we’re well aware of that,” Finance Minister Bruno Le Maire told France’s main employers’ federation on Wednesday.

Opinion polls paint a mixed picture of voters’ views.