While inflation has had a heavy impact on the power of the French for several months, wage increases could occur. Some companies claim to have already taken the lead to guarantee the calmest possible social return. But, in fact, are they in the majority to have opted for this increase in wages?
While France is experiencing high inflation and the purchasing power of the French has been at half mast for several months now, wage increases could occur. But are all companies really ready to do this? Some believe that they are unable to increase salaries. Blame it on production costs that have exploded. Others claim to have already taken the lead to avoid a hectic comeback.
A dive into the unknown
These companies have tried to guarantee the calmest social return possible by increasing wages a little before the summer, during negotiations, in addition to the annual meetings at the start of the year. This is for example the case at Michelin, which granted up to 6.75% increase in two stages for the lowest salaries. At Orange, the envelope released to increase employees from 700 to 800 euros gross per year may not be sufficient and the unions should let it be known this fall. And, what is certain, according to Bertrand Martinot, labor market expert at the Institut Montaigne, is that the period that is coming in companies is a dive into the unknown.
“All our landmarks will be upset”
“HRDs, business leaders and union negotiators have never experienced this. Those who have already experienced it are retired. Today, we realize that we are entering an inflationary cruising regime for some time yet and it will challenge all our reflexes in terms of wages, but also pricing and margin behavior of companies. All our benchmarks will be upset, “he explains at the microphone of Europe 1. And, if in large companies, general increases manage to be negotiated, in SMEs, it is rather a bonus policy that is preferred to provide an immediate response to inflation.