2023-10-15 19:30:14
Élisabeth Borne will hold, this Monday, a social conference on low wages at the Economic, Social and Environmental Council (Cese) in Paris. Six trade union organizations (CFDT, CGT, FO, CFTC, CFE-CGC, and Unsa) and six employers’ organizations (Medef, U2P, CPME, Fnsea, Fesac and Udes) will meet throughout the day before closing in plenary by the Prime Minister.
The social partners agreed, in July, on a “social agenda” for tripartite negotiations with the government on the employment of seniors, career paths, or arduousness. The decision was to maintain this meeting despite the terrorist attack in Arras.
“We cannot give in or put our country at a standstill in the face of terrorism,” explained Élisabeth Borne in an interview with La Tribune. “There is a common desire to strengthen social democracy, to have a moment of unity,” she added.
In this context of inflation and purchasing power crisis, the social partners will try to initiate discussions among themselves, under the aegis of the government.
Low wages on the agenda
Several themes are on the menu: “conventional minimums, classifications and career paths”; “part-time work and short contracts” or even “exemptions from contributions, activity bonuses and reduction in remuneration”. The theme of gender equality was also added at the last minute.
“It is not the role of the government to decide on salary increases. But it is good to tackle structural problems so that salaries increase,” asserts the head of government in her interview with La Tribune. In particular, it should propose “the establishment of a High Remuneration Council, which will be responsible for clarifying the situation and proposing responses”.
Several disagreements with the government
In the meantime, this conference risks being under tension for Élisabeth Borne who will have to face the deep disagreement between the social partners and the government on the supplementary private pension schemes (Agirc-Arrco) and unemployment insurance ( Unedic).
The State wants to drain them to fill the deficit in the general pension system or to supplement France Travail, the new public employment service. These transfers are a “red line” for CGT boss Sophie Binet, and augur “the end of the honeymoon” with the government, according to Medef. “There was never any question of taking money from them,” argued the Prime Minister, who nevertheless estimated that savings have been made in supplementary plans thanks to the pension reform. “They should not be spent when they ensure the overall balance of the system,” she warns.
Other points of divergence are also likely to emerge. On wages, the government has ruled out the idea of indexing them to inflation, as demanded by FO and the CGT. In France, only the minimum wage is indexed to price increases. The executive also shows “a lot of caution”, according to the CFTC, on the main demand of the unions to “condition” the tax exemptions granted to companies on the increase in wages. The unions believe that these measures act as a “low-wage trap” since the closer the salaries are to the minimum wage, the greater the exemptions.
“We take her at her word”
Except that Medef is hostile to it. Its new president Patrick Martin even said he was ready to challenge it legally. “Sanctioning a company that is up to date with its salaries, on the grounds that its sector is not, is legally impossible,” he explained.
In addition, as the minimum wage increases more quickly (with inflation) than the rest of wages, certain minimums in professional sectors are caught up, generating, according to the unions, a “flattening” of wages. In other words, even with several years of seniority, the employee remains at the minimum wage. “Some people start their professional lives on minimum wage and are still there for years later, it’s discouraging! », recognized Élisabeth Borne who calls “collectively” to “give them perspectives”. Around 60 professional branches currently have minimums below the minimum wage, instead of 145 in May, according to the Ministry of Labor.
“The Prime Minister told us that there would be announcements, we take her at her word,” said the head of the first union, the CFDT, Marylise Léon.
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