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Minimum wage, purchasing power: Lecornu summons unions to Matignon, government promises announcements Monday

Minimum wage, purchasing power: Lecornu summons unions to Matignon, government promises announcements on Monday
Minimum wage, purchasing power: Lecornu summons unions to Matignon, government promises announcements on Monday

Sébastien Lecornu is playing an important part of his political future this Monday, November 9. After several weeks of protests against the high cost of living, the Prime Minister is set to meet with trade unions and employer organizations at Matignon for a social conference focused on wages. The government promises responses, while unions demand substantial increases and the November 5 mobilization gathered 575,000 protesters according to the Ministry of the Interior, nearly 1.6 million according to the CGT. According to BFMTV information, announcements should be made at the end of this meeting. “The government will do its part,” assures a government source cited by the channel.

The main expected measure concerns the minimum wage. The Minister of Labor, Jean-Pierre Farandou, indicated he wants to exceed the threshold of 1,500 euros net per month, compared to 1,477.93 euros currently. In an interview with La Tribune Dimanche, he mentions the possibility of an increase as early as December 1, if negotiations conclude quickly. However, he refuses a too significant revaluation, which he believes could weaken companies. The minister notably estimates that raising the minimum wage to 1,700 euros net, as proposed by Jean-Luc Mélenchon, would lead to the destruction of more than 230,000 jobs. A government estimate that is not consensual with organizations supporting this increase.

Unions expect more than just a small boost

The demands of social partners remain distant from the government’s initial proposals. The CFDT requests an increase of 100 euros net per month, while the CGT demands a 10% revaluation. Unions also want commitments on the pay scales of professional branches, some of which start at levels below the minimum wage. Employers warn, on their side, about the consequences of a wage cost increase for small businesses. Jean-Pierre Farandou therefore mentioned the possibility of adjustments to labor costs to support negotiations, without yet specifying the mechanisms considered.

The social conference should allow Sébastien Lecornu to gauge how far the executive can go to respond to the protest. Trade unions have already announced they will meet after the appointment to decide on the next steps of the movement. Another day of action in national education and higher education is planned for Tuesday, November 10. The government hopes that a wage agreement will initiate a way out of the crisis, but no minimum wage revaluation has yet been officially decided.

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Sources cited in the article: BFMTV

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