Yes, you're most likely wrong.
France is a hard working country. It's not where it is today just because there is an Eiffel tower and great bread.
I realize that bashing France is always enjoyable but although its going downhill it's still one of the richest and most powerful countries in the world.
People have more holidays but work for longer hours. One example of one factory doesn't say much about the country as a whole.
For the record, in Germany, 32 hours a week is frequent in many factories (VW).
The question one could ask, is how come the factory reached a point where people work only three hours per day?
It's however true that the minimum wages are far above the minimum wages in India or China. I'm not sure dropping wages to Chinese levels is the solution.
I'm not saying there aren't any problem.
There is a recurrent problem with unions in France and the lack of communication between unions and employers.
Work laws are rigid and the amount of tax companies suffer clearly costs a great deal of opportunities to the country.
There is also a recent, negative shift, toward work and effort in general, especially in the youngest generation. I'm however afraid this might not be specific to France.