Wednesday, November 21, 2007
Le Union Busting?
Nicholas Sarkozy is keeping true to his pledge of US-style economic reforms by challenging the French railway (SNCF) workers special pension rules, which allow them to retire 2 1/2 years earlier than most French citizens. The result has been a rail and transport strike that has paralyzed most of France for a week. Since the SNCF union also represents local rail workers such as Paris metro operators, the resulting chaos has been far more widespread on mass-transit-dependent France than it would be in other nations. Further, the BBC today reported that sabotage has erupted on the nation's famed high speed TGV rail line; such acts of sabotage could have repercussions that last longer than any strike, not to mention the potential for disaster. SNCF negotiators blamed the destruction on renegade elements in the country.
In a related article the BBC wonders if this is Sarkozy's 'Thatcher Moment.' The answer to this question may well have a huge impact on economies across the EU. In his favor, most French are envious/annoyed by the privileged retirement position of the railway workers and are in favor of an equalizing reform. But it is unclear if will this be a broader movement that will in history be seen as a major turning point ala Reagan's destruction of the Air Traffic controllers union in 1981, which signalled the end of collective-bargaining strength in the US (coupled as it was with a host of pro-business, anti-labor laws which changed the playing field of the US economic situation to this day).
It would seem that sea change will not come as easily to Mr Sarkozy. While unions are relatively weak and small in France, there is a strong national sense of collectivization and equalite that resonate deeply in France. Also affected by Sarkozy's intended labor reforms are many health, welfare, and education employees who also staged a walkout and demonstrations this week. Here there is little broad national support for his reforms. last night on French TV news defeated Socialist Presidential candidate Segoline Royal asked Mr Sarkozy to treat French workers "with respect." Others interviewed on the street held that Sarkozy had received a 170% pay raise and asked why that shouldn't hold for them, too?
Such comments signal a prime difference between France and the US in attitude. It has become the prevailing thought here (despite some recent cracks in the facade) that powerful people, important people, successful people simply deserve a disproportionately larger slice of the pie, even a grossly larger slice. Its why income disparity has grown so much in the US in the past 30 years and has done so seemingly under the radar of the average American. Americans in large numbers believe in the Horatio Alger rags-to-riches fable--we approve of financially favoring the richest elements of our society because a large number of us believe that we will one day ascend to that level. This despite many reports showing that class mobility here is on par with countries like France and the UK, and less than many Scandanavian nations (read 'pinko, liberal, cradle-to-grave welfare states') .
So its a mixed bag for Sarko at the moment. To date his Bush-embracing, j'taime USA stance hasn't hurt his popularity very much, and he may still be able to fundamentally change the driving force of politics in France by bringing the opposition to the political bargaining table and out of the streets (where it has typically held the upper hand and quashed many a reform attempt in the past). But it remains unclear if he will wield the power of Milk-Snatcher Thatcher or GOP-canonized Ronnie Reagan to usher in a fundamentally different era in French economics and politics.
Nicholas Sarkozy is keeping true to his pledge of US-style economic reforms by challenging the French railway (SNCF) workers special pension rules, which allow them to retire 2 1/2 years earlier than most French citizens. The result has been a rail and transport strike that has paralyzed most of France for a week. Since the SNCF union also represents local rail workers such as Paris metro operators, the resulting chaos has been far more widespread on mass-transit-dependent France than it would be in other nations. Further, the BBC today reported that sabotage has erupted on the nation's famed high speed TGV rail line; such acts of sabotage could have repercussions that last longer than any strike, not to mention the potential for disaster. SNCF negotiators blamed the destruction on renegade elements in the country.
In a related article the BBC wonders if this is Sarkozy's 'Thatcher Moment.' The answer to this question may well have a huge impact on economies across the EU. In his favor, most French are envious/annoyed by the privileged retirement position of the railway workers and are in favor of an equalizing reform. But it is unclear if will this be a broader movement that will in history be seen as a major turning point ala Reagan's destruction of the Air Traffic controllers union in 1981, which signalled the end of collective-bargaining strength in the US (coupled as it was with a host of pro-business, anti-labor laws which changed the playing field of the US economic situation to this day).
It would seem that sea change will not come as easily to Mr Sarkozy. While unions are relatively weak and small in France, there is a strong national sense of collectivization and equalite that resonate deeply in France. Also affected by Sarkozy's intended labor reforms are many health, welfare, and education employees who also staged a walkout and demonstrations this week. Here there is little broad national support for his reforms. last night on French TV news defeated Socialist Presidential candidate Segoline Royal asked Mr Sarkozy to treat French workers "with respect." Others interviewed on the street held that Sarkozy had received a 170% pay raise and asked why that shouldn't hold for them, too?
Such comments signal a prime difference between France and the US in attitude. It has become the prevailing thought here (despite some recent cracks in the facade) that powerful people, important people, successful people simply deserve a disproportionately larger slice of the pie, even a grossly larger slice. Its why income disparity has grown so much in the US in the past 30 years and has done so seemingly under the radar of the average American. Americans in large numbers believe in the Horatio Alger rags-to-riches fable--we approve of financially favoring the richest elements of our society because a large number of us believe that we will one day ascend to that level. This despite many reports showing that class mobility here is on par with countries like France and the UK, and less than many Scandanavian nations (read 'pinko, liberal, cradle-to-grave welfare states') .
So its a mixed bag for Sarko at the moment. To date his Bush-embracing, j'taime USA stance hasn't hurt his popularity very much, and he may still be able to fundamentally change the driving force of politics in France by bringing the opposition to the political bargaining table and out of the streets (where it has typically held the upper hand and quashed many a reform attempt in the past). But it remains unclear if he will wield the power of Milk-Snatcher Thatcher or GOP-canonized Ronnie Reagan to usher in a fundamentally different era in French economics and politics.
Labels: Economics, France, Sarkozy
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