France: Mixed response to government's pay proposals

On 6 February 2008, the Employment Guidance Council (Conseil d'orientation pour l'emploi, COE) – a consultative body made up of experts and representatives of the government and social partners – issued its opinion on government plans for legislation aimed at creating a “new pay dynamic”.

There is consensus on reforming the way in which the smic (the statutory national minimum wage) is set, but employers’ representatives strongly oppose making reductions in employers’ social security contributions conditional on them meeting certain pay bargaining requirements.