France Drops Labor Law That Led to Protests

By ELAINE SCIOLINO
Published: April 10, 2006

PARIS, April 10  President Jacques Chirac crumbled under pressure from
students, unions, business executives and even some of his own party
leaders today, announcing that he would rescind a disputed youth labor law
intended to make hiring more flexible.

France Drops Labor Law The retreat was a humiliating political defeat for
both Mr. Chirac and his political protégé, Prime Minister Dominique de
Villepin, underscoring the paralysis of their center-right government 13
months before presidential elections.

It also laid bare the deep popular resistance to liberalizing France's
rigid labor market, and it makes any new economic overhaul politically
impossible before a new government is in place, and perhaps not even then.

"Dead and buried," is how Jean-Claude Mailly, leader of the leftist union
Force Ouvrière, described the fate of the labor law. "The goal has been
achieved.".. SNIP

http://tinyurl.com/lk4zt

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