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Rise in wages: "The company can only distribute what it earns", underlines the boss of the CPME

2022-04-29T08:59:21.114Z


In an interview with Le Parisien, the President of the Confederation of Small and Medium-Sized Enterprises insists on the problem of the cost of labor in France, linked in particular to social charges.


While due to inflation, the Smic will be revalued on May 1 for the third time in seven months and will cross the monthly bar of 1300 euros net, this context encourages employees to ask for salary increases.

But in an interview with Le

Parisien,

François Asselin, the president of the Confederation of Small and Medium-Sized Enterprises (CPME) points out “

the principle of reality is that you can only distribute what you earn.

You can always have more salary or more social benefits.

But do we have the money to do it?

(…) The company can only distribute what it earns

”, he insists.

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The president of the CPME highlights a survey carried out a fortnight ago by the confederation, highlighting that out of 1,500 entrepreneurs questioned, 86% cannot pass on to their selling prices the untimely increases they suffer, in particular linked to the impact of the war in Ukraine.

If you can no longer ensure a minimum of margins to pay your employees and your suppliers, what do you do?

“, he underlined.

François Asselin recognizes that there is indeed “

a form of pressure on salaries but the social climate is still very constructive.

And many companies do not wait for branch social negotiations or the rise in the minimum wage to increase the number of people who have the skills sought.

»

He still considers that “

it is quite possible that there is a decline in wages.

I put myself in the shoes of the employees, especially those who have entry-level salaries, we are trying to improve things

”, while emphasizing the rising cost of labour.

In France, we have a real stall with the European average for the cost of labor as soon as we start to go above 1.6 smic because there is no more reduction in social charges.

So, the more we go up the entry wages up to 1.6 smic and the more it settles above because the cost of labor explodes.

»

Read alsoWages: high inflation pushes companies to react

The CPME would like a solution to be found so that the labor cost curve in France remains within the European average, in particular through structural reforms, particularly on pensions.

We have to work longer and longer.

It is an essential lever.

We also need a reform of public action,

” said François Asselin.

Source: lefigaro

All news articles on 2022-04-29

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