If we listen to the bosses gathered for two days at the University of Medef, the answer is yes: the bosses pass on the current inflation by wage increases.
>> Inflation: these employees go on strike for a wage increase because “the price of living is literally exploding”
It depends on the sectors, of course, but to hear them, employers are all careful to maintain the purchasing power of their employees, either by increasing remuneration, or by distributing bonuses, or by playing on investment. For example, France Industrie, which as its name suggests represents companies in the industry, estimates around 6% of the increases that will be distributed at the end of the year in the sector. 6% is the level of inflation according to INSEE over one year, according to the latest data from July, which means that industrial companies are compensating
However, the unions themselves do not have the same perception and the gap is striking. According to Laurent Berger, the boss of the CFDT, the conflicts for wages multiply in the companies. Proof of this is that the union’s strike fund – which helps strikers compensate for lost income – has been much more stretched in recent months than in previous years.
And in 75% of cases, the demands relate to requests for wage increases, mainly in small businesses (VSEs or SMEs). Same story at FO. Frederic Souillot, the new leader of Force Ouvrière, believes that “in the face of lasting inflation, there are no 36 solutions. To help the French to fill their fridge, the real purchasing power is the increase on the payslip.“All the rest is, according to him, only “patch”.
There is therefore a risk of social tensions. With inflation on food products which could reach 10% at the end of the year, with energy prices soaring, the pressure on employers is strong.
There is also pressure from the government side. Bruno Le Maire asked again on Tuesday August 30th to the companies which can it to make a gesture. Especially since obviously, there are a few margins. If we refer to figures from Dares, the statistical service of the Ministry of Labour, the increases are on average 3% this year.