Henri Guaino: "More effective than cheques and targeted aid, wage indexation"

5/15/2023, 6:27:02 PM

Highlights: Former special adviser to Nicolas Sarkozy at the Élysée believes that the automatic increase in wages is necessary to compensate for the loss of purchasing power. The law indexes the minimum wage, rents, pensions, it can index all salaries according to modalities to be discussed with the social partners. The indexation of wages is an operation of truth. When the average increase in the basic monthly wage index in the private sector is only 3.9% in 2O22 while the price index has increased by 6%, there is no gift.

TRIBUNE - The former special adviser to Nicolas Sarkozy at the Élysée believes that the automatic increase in wages in proportion to the rise in prices is necessary to compensate for the loss of purchasing power due to inflation, and, more generally, to respond to the haunting of the...

To a reader of the newspaper Le Parisien who asked him about inflation, the President of the Republic replied: "The key is that work pays better. The minimum wage continues to rise, other wages must follow."

In times of inflation, wages must keep pace with rising prices. A fortiori when the social minima are indexed. This evidence is even obvious to the President of the Republic. But why then add that "the key is on the side of employers and social dialogue". The law indexes the minimum wage, rents, pensions, it can index all salaries according to modalities to be discussed with the social partners. The indexation of wages is an operation of truth. To present as a gift an increase in wages lower than the increase in prices is at least a misnomer. When the average increase in the basic monthly wage index in the private sector is only 3.9% in 2O22 while the price index has increased by 6%, there is no gift...

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