Labor Market Reforms in France and the Job Law 'CPE' - A Lost Opportunity

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:


Case Code : BENV004 For delivery in electronic format: Rs. 400 ;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges


Labor Market Reforms
Case Length : 16 Pages
Period : 1991-2006
Pub Date : 2006
Teaching Note : Not Available
Organization : French Government, Labor Union
Industry : Labor
Countries : France


The case examines the new job law 'CPE' and how it could have led to more flexibility in the French labor market. However, protests, strikes and demonstrations in France by millions of students and workers that paralyzed the country led to its repeal. The case highlights the reasons for the failure of the French government in getting the law accepted by its people and its implications thereof. It elaborates on the French labor market and the prevailing employment conditions in the country. The case also discusses the various employment contracts in France and examines how the changing global business environment has led to difficulties in continuing with the labor-friendly French social model.


Study the implications of higher wages and employment protection laws on the French labor market

Analyze why a law aimed at easing the job access to the unemployed youth may be seen as a threat to the students and working labor community

Understand the growth and development of the European social model

Study the conditions that led the French government to take an increasing role in the state economy and regulate the labor market


  Page No.
Introduction 1
Background Note 2
The French Labor Market 4
Labor Reforms 7
Post CPE - Analysts' Viewpoints 9
The Implications 10
Exhibits 12


French Labor Market, Contrat Premiere Embauche (CPE), Job Law, Social Security, Labor Productivity, Minimum Wage, Working Hours, Unemployment Rate, Unemployment Allowance, Social Unrest, Labor Reforms, Employment Contracts in France

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