The socialist authorities of France are not abandoning their attempts to prohibit the owners of private companies from closing factories in France. At the end of last year, it was for this purpose that President Francois Hollande summoned the head of the ArcelorMittal concern, Lakshmi Mittal. However, meetings with world business leaders most likely did not seem very effective to the French President, and his government initiated the adoption of a law that effectively prohibits companies from closing their factories. The law was passed by the lower house of the French parliament on Tuesday.

Francois Hollande shows with all his appearance that his activities reflect the interests of the French working class
Photo: REUTERS/Philippe Wojazer, Reuters

The law was called "Florange's Law" - after the name of the city in which the ArcelorMittal steel plant is located, which Francois Hollande vowed to protect while still a presidential candidate. Hollande did not help the plant (in July the concern permanently closed two workshops in Florange), but it will probably be able to protect other production facilities.

In accordance with the law, all cases of closure of unprofitable enterprises must be considered in commercial courts. If during the proceedings it turns out that the owner did not take all the necessary measures to find a buyer, he will be sentenced to a fine of up to 20 minimum monthly wages for each employee who lost his job. The minimum wage in France has been set at €1,430.22 per month since last year. The law applies to all companies with more than 1,000 employees. For a law to take effect, it must be approved by the Senate and the President.

Hollande fights for factories