French Strikes: A Grève Issue
Strikes are nothing new in France. Labor unions have long held extraordinary power in the French republic. Strikes are so common in France, in fact, that they've become a negative stereotype about French society.
“When in France, Uber Does as the French Do by Going on Strike” is one such tongue-and-cheek title put out by BloombergBusiness during the seemingly never-ending back-and-forth tensions between taxi unions and Uber chauffeurs. What many overlook, however, is the economic tragedy behind all the drama.
According to the Organization for Economic Cooperation and Development's most recent 2013 statistics, unions in France have an exceedingly low membership rate, standing at just 7.7 percent of the total workforce. Compare this with the United States, the UK and Sweden—10.8, 25.4, and 67.7 percent respectively—the difference is astounding. Even with this low membership rate, unions remain a powerful force in France. This is mainly due to powers given to them by legislation. Worker’s rights are protected through work councils -- or "comités d'entreprise" -- which operate in companies with 50 or more employees. Labor unions control these work councils, which managerial staff must report to in order to pass certain changes in the structure of the company. This can often lead to tension within the hierarchy of a corporation.
Unions therefore have a powerful political and economic impact within France, often to the economic detriment of the country. French labor unions are meant to represent the demands of their members, which in turn means that they have their own political agenda. While in theory this is meant to advance the rights of the average worker, it merely creates unnecessary conflict.
(Image Credit: Spi0n/Youtube)
The strikes held by the taxi unions in late January prompted legislative action to be taken against Uber and its drivers. Members of the taxi unions rejoiced at this news, but Uber drivers who have their own unions were thrown under the bus. The only option for them was to have their own protest against the taxi union’s protest. When they protested against that taxi unions, the taxi union responded with their own protest. Basically, they’re protesting the protest of a protest.
How can an economy function when constantly gridlocked? When the French government uses its legislative power too proactively within the economy, it creates a never-ending cycle of conflict that can only be resolved by direct government action. In mixed, free market economies, there needs to be a level of economic resolution within the marketplace itself.
The French unions are too strong. Their political clout is much greater than necessary, especially when considering their membership levels. The wants and desires of unions can’t be continually met if French society desires to have a proactive, expanding market. Taxi unions are allowed to get upset about an application that does their job better—and cheaper—but it doesn’t entitle them to government protections. Uber doesn’t need to be penalized because they’ve innovated and improved upon a lacking service.
What hope for economic and technological advancement is there in a country where the government is incessantly bound to the whims of unions?
