French cabinet tempts unions with wage hike talks in mass protest aftermath

The French government convened a high-level 'social conference' on October 16 aimed at addressing wage increases following protests that paralyzed public life earlier this year.

As reported by Euractiv, this comes several months after a contentious pension reform had brought government-union discussions to a halt, which resulted in mass protests erupting throughout the country.

French Prime Minister Elisabeth Borne characterized the conference as a "new step in [French] social democracy" and expressed hope that "work pays better, especially in some essential sectors."

One of the driving factors behind this discussion is the persistent inflation that has been ongoing since the start of Russia's invasion of Ukraine in February 2022. This inflation reached an annual average of 5.2% for 2022 in France, leading to a decrease in real wages. Data from the OECD, an organization primarily consisting of wealthy countries, indicated that real wage growth was negative in most rich nations between the first quarter of 2022 and the same period in 2023, with France experiencing a drop of -1.5% in the third quarter of 2023.

At the EU level, sectors facing severe labor shortages, including electricity and gas, administration, and food services, were found to have wages that are 9% lower than the average. This suggests that wage stagnation may be contributing to lower recruitment rates.

In simpler terms, wages have not kept pace with the general increase in prices, which has negatively impacted low-paid workers, particularly those in sectors with significant labor shortages.

Prime Minister Borne emphasized that the conference aimed to reinforce "social promotion and increase wages," with a central focus on enhancing purchasing power in France's social agenda.