France urges firms to avoid virus layoffs via part-time schemes

Agence France-Presse

This is AI generated summarization, which may have errors. For context, always refer to the full article.

France urges firms to avoid virus layoffs via part-time schemes

French Prime Minister Jean Castex (C) and French Labor Minister Elisabeth Borne (3rd R) visit a plant of manufacturing corporation Bic with its director Benoit Bemer (L), in Montévrain, France, on September 14, 2020. (Photo by STEPHANE DE SAKUTIN / AFP)


For companies that sign up, the French government will pay 93% of an employee's net salary even if they are no longer working full time

France’s prime minister on Monday, September 14, called on companies to negotiate part-time work accords with employees, financed in part by the state, to avoid outright layoffs as the COVID-19 crisis hammers the economy.

“I strongly encourage you to sign a massive number of long-term partial activity agreements within sectors and companies, and very quickly, between now and November 1,” Jean Castex said during a visit to a factory east of Paris.

For companies that sign up, the government will pay 93% of an employee’s net salary even if they are no longer working full time. The scheme is scheduled to run at least until next summer.

The government has already spent billions of euros to keep paying most of the salaries for people who otherwise would have been dismissed during the coronavirus lockdown from March to May this year, and the subsequent business slump.

The goal is to limit unemployment that is expected to reach 9.5% by the end of 2020 after 715,000 jobs were lost during the 1st half of this year.

France has unveiled plans to spend a further 100 billion euros ($119 billion) to help the economy recover, but “this will work depending on one single condition: your total mobilization,” Castex said.

Already 345 part-time agreements have been signed between employers and staff bodies since March, saving 50,000 jobs overall, according to the labor ministry.

“These accords also allow you to organize professional training for your teams when they are unemployed,” Castex said.

The government estimates the economy will contract by 11% this year, though Finance Minister Bruno Le Maire has hinted that officials are preparing to release a less pessimistic number this month. – Rappler.com

Add a comment

Sort by

There are no comments yet. Add your comment to start the conversation.

Summarize this article with AI

How does this make you feel?

Download the Rappler App!