Paris: 40,000 students marched through Paris in fresh protests against Prime Minister Dominique de Villepin's new labour laws. Labor unions have also called for a strike on the March 28.
The unions had set Monday evening as deadline for Villepin to withdraw the jobs plan or face a possible general strike – but he showed little sign of backing down. Meeting student groups, Villepin calmly urged dialogue.
France has suffered from high unemployment for decades. Approximately 20 per cent of 18 to 20 year-olds are out of a job. Under the new law, businesses can hire people up to 26 years of age for a two-year trial period.
During this time, the employee can be dismissed at a moment's notice.
The law, passed by parliament this month, is designed to reduce youth unemployment by making it easier for companies to hire and fire. But critics fear it will hurt job security.
De Villepin thinks this will encourage employers to hire more young people, as they don't have to pay all the benefits due to permanent employees.
It makes their cost of doing business cheaper, but his target audience isn't amused.
France already allows businesses to hire new employees for a trial period of up to 6 months. Businesses often extend that period by marginally altering an employee's job description.
Students argue that extensions up to two years are common and that the new labour law will only give official sanction to what is a dubious practice.
The European Community is also concerned. It is worried that the French law goes against European labour laws that guarantee job security.
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