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Companies assisted by the State: should we demand compensation?

2020-09-28T04:20:38.874Z


While the government has just announced new support measures for administratively closed establishments, the debate is swelling over


The government has opted for recovery by relying on businesses, rather than consumption.

They are therefore the big winners of the Finance Bill for 2021 which will be presented on Monday, and which includes the 100 billion euros of the recovery plan.

In recent days, with the new turn of the sanitary screw which obliges to close bars, restaurants or sports halls in certain departments, the support measures in favor of companies will further increase public spending.

But have all these billions spent in favor of companies been insufficiently matched?

It is in any case the controversy which swells while large groups announce in bursts of massive job cuts.

"The government distributes aid unconditionally and this is a real problem, denounces Philippe Martinez, the leader of the CGT.

We have been campaigning for a while for there to be real conditionality in financial aid, particularly in terms of maintaining employment.

So far, the government has not listened to this request.

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"I believe that this debate creates a wait-and-see attitude that goes against the objective of speedy execution of the plan", deplores Philippe Martin, the deputy chairman of Medef.

On the side of the French Observatory of Economic Conjunctures (OFCE), Mathieu Plane is of the same opinion.

"If we want to demand compensation, it will be necessary to launch negotiations and it will take too long, analyzes the economist.

Today, the accompanying measures must be rapid to support companies which, despite state aid, recorded 50 billion euros in losses between the start of containment and the end of June.

"

"Companies try to save their skin first"

Not to mention that for him, given the economic context, no boss can promise not to lay off in six months: “in a situation of great uncertainty like ours, companies cannot commit to maintaining employment .

Or else, it would be at the cost of very heavy efforts, such as wage cuts, an increase in working hours… ”

The bosses will still benefit from 20 billion euros in two years, with the only reduction in production taxes.

But if this measure will affect 1.2 million companies, it will not automatically trigger a wave of hiring.

"Among these companies, many have problems of competitiveness, profitability, cash, deplores Patrick Martin.

Right now, companies are trying to save their own skin first.

The hires will happen, but they will happen naturally.

"

At Medef, it is therefore considered that the current controversy is unfounded.

“Counterparts in terms of jobs already exist,” continues the deputy chairman of Medef.

I am thinking of the aid of 4,000 euros for the hiring of a young person under 26, or the bonuses of 5,000 euros and 8,000 euros for employers who recruit in apprenticeship.

"Insufficient", tackle Philippe Martinez who has been demanding for months that "this aid is conditional on a CDI and not only on a CDD".

Source: leparis

All business articles on 2020-09-28

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