do companies go so far as to compensate for inflation?

Air France has announced a 5% increase in salaries as well as an exceptional bonus of 1,000 euros for its employees. Renault, too, is ready to make a move on compensation. We do not yet know how high: a meeting is scheduled for next week with the unions. More broadly, at the moment, in companies, management and staff representatives are discussing salaries a lot. The rise in prices is such that we no longer expect the traditional mandatory annual negotiations (NAO) which generally take place at the end of the year in companies. We are looking for solutions now.

Companies find it difficult to compensate for inflation. We are at more than 5% inflation this year, 4.2% expected next year. And according to a recent study by the human resources firm Alixio, the majority of companies are counting on increases of around 4% next year, whereas a few months ago, most did not think they would distribute as much. We were rather on increases around 2.5%. But employers are also reviewing their copy because of labor shortages. They are often generous for fear of seeing their employees leave to compete or simply to recruit.

Companies also seek to avoid social tensions and they are right. At Renault, if the group is negotiating it is because it is facing strike movements in certain factories. And if we look abroad, employers have reason to worry: there are mobilizations in Germany, strikes in the United Kingdom… Admittedly, inflation is much higher there than in France. But the subject of purchasing power is sensitive everywhere. The CGT and FO are also calling for a national mobilization on September 29 for wages.