France spreads the wealth... an example of why unions still matter

Image: Salvatore Vuono / FreeDigitalPhotos.net

Here's an example of why strong unions matter: Effective from now until December 31, 2013, under a law enacted by the French Parliament this past summer, all French commercial companies with 50+ employees are required to negotiate the modalities for a bonus, which will be paid to their employees whenever the firm distributes dividends to its shareholders in an amount higher than the average dividend for the preceding two years. For qualifying dividends distributed starting January 1, 2011, the company must have an agreement with the workers in place by the end of this month. The agreement must be negotiated under the relevant article of the French Labor Code. If no agreement is reached, this must be reported to the government.

Let me suggest that the relative strength of organized labor in France, as compared to the labor movement's anemic condition in the private sector of the US economy, explains why the French government would enact such legislation, while here in the US the Obama administration can't even get the wealthiest among us to ante up a greater share of tax revenue... much less share their precious (lower-tax rate) dividends with employees.