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 Chirac holds out his hand on eve of job rally
    April 04 2006 at 02:33AM Get IOL on your
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By Jon Boyle and Mark John

Paris - President Jacques Chirac's ruling conservatives courted unions and students on Monday with hints of fresh concessions in a disputed youth job law, on the eve of new national strikes and protests.

Officials from the Union for a Popular Movement (UMP) said they wanted speedy talks "without taboos" with opponents of the new CPE work contract for the young, widely interpreted as a signal the party is ready to make major changes to the law.

"We want an open dialogue with no taboos and no prejudices," UMP spokesperson Luc Chatel told a news conference.

"We need to get out of this crisis as soon as possible. We are holding out our hand and want to renew dialogue."
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Tuesday's demonstrations and strikes will be keenly watched for signs that the sometimes violent unrest of the last two months has peaked following March 28's nationwide day of action, which unions say was joined by three million demonstrators.

Aimed at tackling high youth unemployment, the CPE is intended to encourage employers to hire by allowing them to summarily fire employees under 26 within a given period. Critics say it will merely increase job insecurity.

Chirac said on Friday he would sign the contract into law, but effectively ordered its suspension pending parliamentary amendments to cut its maximum term to one year from two and to give employees the right to know why they are being fired.

His move lessened the risk that Prime Minister Dominique de Villepin, the contract's champion and thought to be Chirac's favoured successor as president, would resign. But it could leave Villepin weakened as UMP leaders now seek a solution.

One potential winner is UMP party chief Nicolas Sarkozy, who also harbours ambitions to lead the right in 2007 presidential elections and who may emerge as mediator of a possible solution.

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