NewsletterMarch 2009

Sign of the Times

This is a poster against the ‘Réformes Darcos’, a planned school reform that includes job cuts.

Strikes in France

On January 29th there was a one day national strike that affected all public services in France. My son’s school was open but there weren’t any teachers, all were on strike. There was also private sector participation but much less than the public sector.
It’s hard to know just how many people were on strike; the government said a million and unions said 2.5 million. Another national strike is planned for March 19th. There is a national strike web site (in French).
Demands were varied but generally the issue is the government’s handling of the economic crisis: Aiding the banks as the French government is doing, is not very popular with the French public; as banks are seen as the main reason for the economic meltdown. The French public strongly supported the strikers by about 70%.
A few weeks after the strike a ‘social summit’ was held, with about 2.6€ billon (banks got more than double this) promised to workers, mostly in the form of tax breaks and one time bonus. Despite the euros the strike planned for March 19th will go as scheduled.
This brings up one of the criticisms often aimed at France: striking. Not counting the national strike on January 19th schools have been on strike over the ‘Réformes Darcos’ (Photo above was taken at a demonstration against the reforms), university staff are striking over proposed reforms and the Paris train station Saint Lazare was subject to about a month of wildcat strikes that severely disrupted service. It isn’t just mainland France: the islands of Guadeloupe and Martinique both had island wide strikes. The Guadeloupe strike may be ending (it started earlier) but the Martinique is continuing. The main demand for both Guadeloupe and Martinique is an increase in wages and lowering of prices for everyday products.
Why so many strikes in France? There are the obvious reasons, you can’t be fired for striking and striking is a right written in the French constitution. But I think it comes down to the dynamics of French labor relations: striking is often the first recourse in labor disputes, followed by demands and finally negotiating.

Gandrange

Not only does Nicholas Sarkozy have a problem with national strikes he also has a problem in the town of Gandrange, one that could have major ramifications on his reelection.
Gandrange is located in northern France, once France’s industrial heartland but now struggling to keep companies in the region. Steel grant Arcelor Mittal operates (the mill will soon be closed) a steel mill in Gandrange. In January 2008 Arcelor Mittal announced a lay off 595 of the over 1000 workers at the mill, even though Arcelor Mittal had recorded profits at the time. As is his personal hands on style (in France it’s called Sarkozy‘s personalization of power) Sarkozy personally intervened and had a late January meeting with CEO Lakshmi Mittal. Mittal said he would rethink the lay offs. Again as is his style, Sarkozy went and visited Gandrange and the Arcelor Mittal steel mill. During the visit Sarkozy said that if Arcelor Mittal didn’t reinvest in Gandrange the French state would. This included helping find a new owner, if necessary.
A year later workers at Gandrange in a savvy press coup laid a memorial to the unkept promises Sarkozy had made a year before. The workers don’t feel that Sarkozy or Arcelor Mittal were true to their word. A photo of the memorial can been seem in the Blog Ensemble pour Gandrange (Photo top left).
Sarkozy in a recent TV interview said he would go back to Gandrange, as he promised during his visit. Sarkozy has to go back or look like a liar. When he does go back the welcome won’t be warm, the press will in part focus on the promises Sarkozy made and if he kept them. The situation is difficult for all, especially for Sarkozy.

It’s almost that time of year again

Yes, it’s tax time. I work with two American accountants – Barron Harper and Liz Zitzow who are specialized in dealing with the American expatriate community, be it in France or another country. I also work with two accounting firms - Property Tax International and French Tax Online who can help with your French returns. Property Tax International is offering a special offer for American in France readers. Barron Harper has articles on Americans in France.

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