Unions reject Chirac 'compromise' on disputed law

Trade unions and students have rejected French President Jacques Chirac's decision to enact a modified youth labour law despite…

Trade unions and students have rejected French President Jacques Chirac's decision to enact a modified youth labour law despite his last minute amendments to the controversial law.

Left-wing opposition parties gathered at the headquarters of the Communist Party to co-ordinate protest plans ahead of a nation-wide "action day" slated for next Tuesday. A similar protest last Tuesday mobilised over a million demonstrators.

The disputed law allows employers to fire workers under 26 without reason during their first two years. In an address to the nation last night,

In his speech Chirac said he would sign the legislation into law but would make some changes to it which would shorten the trial period to one year and oblige employers to justify any firing.

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Some low-level violence was reported after his speech as students held small spontaneous demonstrations across the country. A handful of violent protesters destroyed the office of the conservative Paris deputy Pierre Lellouche.

Trade unions immediately rejected the proposals with Jean-Claude Mailly, head of the Force Ouvriere union, telling Europe 1 radio that "Today is April Fool's Day. If this weren't so serious, I'd think the speech was delivered today."

The country's conservative government and left-wing opposition are holding emergency strategy sessions today following last night's speech.

Prime Minister Dominique de Villepin called in his main rival, Interior Minister Nicolas Sarkozy, and the pro- Chirac speakers of both houses of parliament to plot how to rush the amendments through the National Assembly as soon as possible.

"This confusion cannot stop the crisis," said the left-wing daily Liberation, criticising Chirac for signing the disputed jobs law but asking employers not to use it until a follow-up law modifies its most contested measures.

The conservative Le Figaropraised Chirac for seeking a compromise but warned that all sides - protesters, government and opposition - "must enter the game before events get out of hand for all of us".

However, Bernard Thibault of the pro-communist CGT union said: "We stick to the call for mobilisation now more than ever."

"We are not more convinced this evening," said Bruno Julliard, president of student body UNEF.

BMP Paribas senior economist Dominique Barbet also saw the unrest continuing: "The law has been largely emptied of content but the trade unions , students and opposition just refuse the law altogether, so the protests are likely to continue."

Chirac also proposed that trade unions, students and high school pupils join what he called a "constructive social dialogue" to draw up the amendments to the job law. Unions and students promptly rejected the offer.

Business leaders fear more protests could damage France's image and hit investment and tourism, especially since the unrest has erupted so soon after rioting by angry youths in the poor suburbs around France's main cities lateí last year.

New figures issued on Thursday showed February unemployment stuck at 9.6 percent, one of the highest levels in Europe. Joblessness among under 25-year-olds fell only slightly, from 22.8 percent to 22.2 percent.