the protests are from a new law that allows employers to fire without cause anyone under the age of 26 within a 2 year trial period...it used to be that once someone was hired they "had a job for life" i believe.
i had a long reply to this post but somehow clicked the wrong button and erased it

and it took me awhile to compile my response...but look at this website
http://www.iht.com/articles/2006/03/19/news/france.php
and this quote from it which explains why there is unrest amongst the youth:
The measure, set to go into effect in April, would allow employers to lay off new workers younger than 26 in the first two years of their contract without cause. Protesters say the law erodes vital employment rights and could be turned into a charter to exploit young workers.
If Villepin did weaken the terms of the contract to defuse the opposition - either by shortening the tryout period to one year from two years or by making it more complicated to lay off workers - Villepin would make employers less interested in hiring young workers, destroying the reason he introduced the contract in the first place.
"Watering-down the contract could be a quick escape route for Villepin," said Emmanuel Rivière, director of political research at TNS-Sofres, a polling firm. "But that would be political liability for him, too, because then the contract probably wouldn't do as much to lower unemployment."
and the reason why they believe it would lower unemployment among the youth (currently at like 19% i think although this says more like 25%):
Villepin pushed through the law to ease chronic high unemployment, particularly among the young, where one in four is out of work in France, and in the suburbs, where youth unemployment runs as high as 50 percent and helped to fuel an outburst of rioting last year.
Pressure on the government to make changes also comes from foreign and French investors, who say the economy cannot reach robust levels of growth until businesses have the confidence to hire workers when times are good because they have the flexibility to shed others during an economic downturn.
But Villepin's plan has come unstuck as union members fight to retain job security and students accuse the government of age discrimination and of leaving them vulnerable to unscrupulous employers.
so yes they do have great labor laws except that many employers are hesitant to hire new workers because then they would be bound by law to keep them
one argument is that the french society is comfortable with mediocrity (this is just an opinion i read in the WSJ last week--sorry no link and the rag has since gone to the recycling center) in that many settle for the first job they ever get in life....
i personally have a feeling that the riots from last year are also helping to fuel some "opportunistic" vandalism as many of these peaceful protests against the new law have turned violent.
so much for my short reply
