Labor Market Reforms In France And Job Law CPE: A Lost Opportunity

Study the welfare state model in Europe. How has this model led to the increase in
productivity and continuous growth of European economics in the post World War II
period? What are the present conditions that now warrant a change in the social model of
Europe?

A welfare state is a concept of government in which the state plays a key role in the protection
and promotion of the economic and social welfare of its citizens. These include promotion of
employment, improved living and working conditions, wage rates and working hours, proper
social protection (pension, unemployment benefits, housing, health care etc.), dialogue between
management and workers, the development of human resources for permanent employment and
the combating of dismissals. It is based on the principles of equal opportunity, fair distribution of
wealth, securing basic human rights and public responsibility for those who are unable to avail
the minimum requirements for a good life. The general condition may cover a variety of forms of
economic and social organization. France establishes a comprehensive system of social security
in 1946, after World War II. Social security is a right of citizenship in France.

The welfare state involves a direct transfer of funds from the state to the services i.e. healthcare,
education as well as to the benefits of individuals. The French system of Social Security is
financed largely by contributions based on the wages of employees. The model establishes peace
between workers and management and facilitates growth in European economies.

Dialogue between the social partners, information and consultation between management and
workforce are important aspects of the European Social Model. Social dialogue encourages
innovation and productivity, improves workers morale and provides them more control over the
tasks they perform. Workers rights in organisational matter help to create a skilled and
innovative workforce. Adequate benefit systems enable workers to respond constructively to
produce, rather than trying to resist it. High social standards benefit economic performance.

Social protection enhances the capacity of poor to escape from poverty. It stimulates the
involvement of poor people in economic growth, removes misconduct in a downturn and
contributes to social integrity and stability. It helps build human capital and manage risks, and
represents good value for money. By strengthening the employability of poor people and
enabling them to obtain health coverage and family benefits, the state promotes their
participation in the labour force. Welfare state thus builds self-reliance. Nearly 100 percent of the
French population is covered by the social security system.

Welfare model facilitates to fight poverty and redistribute wealth that achieves the higher levels
of equality in Europe than any other part of the world. Companies that involve employees in
reforming working environment reap the benefits in innovation and production performance. In
France, the average labour productivity has 10-50% more over competitors during 1953-70.
Social model provides the best method available to structure the society in order to make human
life as satisfying as possible and it seems that the European welfare state makes important
contributions in developing the potential for improving the human condition.

Conclusion

The European Social Model is an example of a society, based on social rights and solidarity,
where economic and social advancement take equal priority, and where proper work and social
protection combat poverty and social exclusion. Therefore, the success of Social Model is not
only important for Europeans, but also for developing proper economic environments in other
countries.