THE North-East must adopt French employment values if it is to create a prosperous economy, says the TUC.

A new report issued by the union condemns US-style wild-west capitalism and says that the North-East and UK must work towards partnership and co-operation.

Entitled Answering the Flexibility Myth - Why the French are Right, the report says that the US's strong jobs record exists because the country has wider economic policies and takes a short-term approach to its economy.

In Europe, social partnership economies are doing better in the long term.

"When we look at the legacy of industrial confrontation and the damage it causes we see the future is unions and companies working together to benefit everyone," said Paul Nowak, regional secretary of the TUC.

The report reveals that the French have created more jobs than the UK over both a 10 and 40-year period.

Workplace productivity is 20 per cent higher in France, and the country has a more equal labour market.

France adopts policies that allow employees to balance their lives, such as on-site child care facilities and more flexible working hours, with fewer longer-hours jobs.

Mr Nowak said in the North-East many businesses and organisations such as One NorthEast are working hard so that more people can find work and employees can lead balanced work and family lives.

But some companies reject co-operation and partnership.

"One firm of solicitors recently brought in a union busting American to speak on the Employment Relations Act," said Mr Nowak. "Business should be engaging with unions, not busting them."

TUC general secretary John Monks said: "France's economic record is easily as good as ours, and in some ways better.

"It's time to knock on the head any idea that only moving to a US-style wild west capitalism is the only way to boost the economy."