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Wednesday, 12 December, 2001, 11:58 GMT
UK ski firms fear French employment ruling
A ski resort in the French Alps
Some British firms risk going out of business
By the BBC's James Cove in the French Alps

A judge in France will rule later this week on two British ski companies charged with breaking French employment laws.

It is a landmark legal case that will have significant implications for winter and summer holidays.

The French says the British companies pay their staff less and thus have an unfair competitive advantage.

If they lose, some British companies say they will be forced out of business as their overheads will have to rise.

Vanessa Haines from the Ski Club of Great Britain says the case is very important.

Huge implications

"This case has gone largely unreported so far but make no mistake it could have huge implications for British people who go on holiday in France both in the winter and the summer.

"The cost of one week holiday could rise by about £60 per week.

Customer examines winter holiday brochure
Holiday prices may rise if the British companies lose
The French authorities argue that because British workers are hired on British contracts, they avoid French employment regulations which are much tougher on employers.

The average worker costs a French employer £1,200 per month but his British counterpart only pays out around £600.

Subsequently, the overheads of British companies are lower, allowing them to undercut French hotels and holiday companies.

Bruno Gabet, the manager of the Trois Vallee Hotel in the ski resort of Val Thorens, says the situation is very unfair.

"I have to pay my staff more and so my rooms are more expensive.

"I do not mind competition with the British but I do not want it with one hand tied behind my back."

Fringe benefits

Surprisingly many British workers don't actually want to be governed by French law even though this would mean more money and less hours of work as they fear they would lose all their fringe benefits.


It is hard work but I accept the job for what it is. I am not doing it for the money but for the lifestyle and to spend a season in the mountains."

British worker
These include free lift passes, subsidised accommodation and free travel to the Alps.

Peter Hopps works as a barman at The Frog and Roast Beef Pub in Val Thorens.

"It is long hours and hard work but I accept the job for what it is," he explains.

"I am not doing it for the money but the lifestyle and to spend a season in the mountains."

Under European Union law, France has the right to apply its own national regulations.

This would force employers to pay staff more and limit their hours to 35 per week.

The British would also pay more in tax and social security contributions and some people say this is the real reason why the case is being brought.

Hefty charges

If the French win their case then the tax authorities would be able to levy hefty charges.

Serge LeCapitain, an inspector from the body collecting welfare charges, denied the claims and rejected suggestions of Anglophobia.

"It is absolutely not true, we are not against the English and every EU firm has a right to practice but it must be within the law".

The French Alps
British staff often earn less than their French counterparts
If the British lose then the cost of holidays with a British company could go up.

Some firms say they will be forced out of business.

Mark Warner is one of the companies involved in the case. Marketing manager Nigel Wragg says the significance of the case should not be underestimated.

"Make no mistake, this case is very significant for everyone in the holiday trade, both winter companies and summer ones too".

The judgement will be handed down on Friday 14th December.

See also:

17 Nov 01 | Europe
Global warming may hit skiing
12 Dec 01 | Business
Fear of flying lifts alpine shares
27 Oct 01 | Business
Skiers buck declining travel trends
30 Aug 01 | Sci/Tech
Tourists' heavy Alpine toll
25 Feb 01 | Europe
Ski coach safety defended
04 Jan 01 | Sci/Tech
Melting permafrost threatens Alps
24 Apr 01 | Europe
France tightens employment laws
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