French Prime Minister Dominique de Villepin and trade unions failed to break the deadlock over a youth labour law today at a meeting called to discuss a crisis that has triggered mass protests and riots.
Employers' groups also met with Mr de Villepin to tell him the plan which confers lesser rights on under-26s may not reduce unemployment. They also warned the violence was endangering the economy.
Mr de Villepin said the 90 minutes of union talks today were "an important first step" and he hoped for more discussions in the coming days. But he said he would not heed their call to dump the CPE First Job Contract despite a national strike called for Tuesday.
President Jacques Chirac, who has pushed his prime minister to renew dialogue with unions, said Mr de Villepin was ready to take account of protesters' views but condemned rioting by youths which marred demonstrations in Paris and some provincial cities.
Union chiefs said after the meeting they had failed to get Mr de Villepin to scrap the CPE, which allows employers to fire employees under 26 without reason within their first two years in a job.
No further meetings with the government were yet planned, they added.
Employers are also concerned about the contract say it will not create jobs.
Laurence Parisot of business group Medef said: "We think they are endangering the economy of our country, that they are endangering the image and the reputation of our country and the strength of our social fabric."
Friday's meetings came a day after rampaging youths torched cars, looted shops and robbed student demonstrators at the end of student protest marches in Paris and major provincial cities.
Some 630 people were arrested and 90 officers were injured in the clashes.