the government asks companies to get their hands dirty

(Article published on 7/12/2018 at 15h15 update the 7/12/2018 at 16h20) Everyone must take his part had warned Muriel Pénicaud. The Minister of Labor received this Friday morning at his ministry trade unions (except the CGT) and employers with five other members of the government (Jacqueline Gourault and Sebastien Lecornu – Cohesion of the territories – Elisabeth Borne – Transport – Julien Denormandie – City and Housing – and Emmanuelle Wargon – Secretary of State for Ecological Transition -). Objective: to discuss the contribution of companies in resolving the crisis of "yellow vests". While rising purchasing power is one of the major demands of the protest movement, this tripartite meeting has brought out a general consensus around a proposal initially made by the president of the Hauts-de-France region. Xavier Bertrand: the payment to employees of an exceptional tax-free bonus of up to 1,000 euros. It's a good idea […] in the sectors where it's going well we can make a gesture, "confirmed Friday morning at the microphone of France Inter, the president of Medef Geoffroy Roux de Bezieux. In fact, the employers' organizations wish that the payment of the premium be left to the discretion of the employers. "The voluntary nature is essential because unfortunately the situation of the companies does not allow to generalize it," said Jean-Eudes du Mesnil du Buisson of the Confederation of Small and Medium Enterprises (CPME). A condition that does not meet Laurent Berger of the CFDT who wants a bonus "mandatory". In general, the workers' unions have underlined the short-term nature of the tax-free premium: "it is one of the solutions but it is one-shot, it is not a structural solution", analyzed Laurent Berger. Companies under pressure Gold, the anger of the "yellow vests", requires urgently to find viable solutions in the long term. Labor Minister Muriel Pénicaud told BFM Business earlier this morning urging companies to increase their employees' salaries in the face of the "absolute urgency" of the "yellow vests" crisis. In the current crisis, everyone can and must contribute. I call on companies to:
✅ negotiate wages in companies / branches
✅ accelerate equal pay ♀️♂️
✅to share the value created
✅respect the payment terms for tpe-pme#BFMbusiness – Muriel Penicaud (@murielpenicaud) December 7, 2018 "Let big business lead by example, and there are many who are willing to do it, who say it. There are branches that have accompanied wages in recent years, others less so. I know they are ready to do it, it must be done, "said the Minister of Labor who said exclude to impose by law a general increase in wages:" it does not make sense, we would destroy competitiveness and employment ". Exceptional tax-free bonus The day before, it was the Minister of the Economy Bruno Le Maire who urged on France 2 bosses to increase the wages of their employees via the proposal to pay an exceptional tax-free premium. "A bonus totally tax free, I am in favor because it helps to support those who work," said Bruno Le Maire. In detail, the premium mentioned could be tax free up to 1,000 euros and would be paid only if the company wishes. Mr. Le Maire said he wanted "the greatest number of companies to pay this premium to the greatest number of employees in recognition of their work, their efficiency and their commitment to the service of their company". Prime Minister Edouard Philippe also spoke Thursday in his speech to the Senate, targeted measures for low wages without, however, specify its contours while, at the same time, several members of the majority push for a revaluation of the activity bonus for wages just above the Smic. For good reason, these are not currently concerned by the increase of 30 euros per month which must occur on April 1, 2019. Employers and business leaders rather reluctant For their part, the representatives of the bosses refuse any increase their charges or the tax burden. The president of the Medef Geoffroy Roux de Bezieux, also confided this Friday morning at the microphone of France Inter, fear that the government will direct discontent to companies and they become the "scapegoats of a tax revolt" while the "yellow vests" crisis is already causing concern at the highest level of the state. Read also: "Yellow Vests, Act IV", a high-risk demonstration for Saturday "I would not want this tax revolt to turn into accusing companies doing their job. We point the finger at companies while it is a tax problem, "he regretted. "If we turn to companies to raise taxes, unfortunately unemployment will start up again," he also warned deploring at the same time that France is the OECD country where the weight of the levies tax was the largest in 2017 with 46.2% of GDP, according to Medef figures released this Thursday. Summoned to act, business leaders seem reluctant. The CEO of Orange Stéphane Richard for his part explained, this Friday on FranceInfo, do not appreciate "the idea that the big companies is a pile of gold in which one can finally draw at will" underlining that they evolved "in very competitive markets". The budget question requires savings Not sure that this argument resonates with the government which now has business in its sights. In question, the abandonment of all increases in carbon tax for 2019 which represents a shortfall of 4 billion euros for the state. France will have to fill this hole to comply with its forecast of a public deficit estimated at 2.8% of GDP next year – objective finally abandoned – and especially not to exceed 3% of GDP as required by Brussels. An addition that is expected to grow due to concessions granted to Reunion Island (anticipated increase in social minima) or lower taxes on electricity. Also, the government will have to save money and businesses could be the first to be involved through three components. First, the corporate tax rate. The government initially wanted to reduce it to 25% by 2022. One of the tracks mentioned would lead to the cancellation of the planned stage in 2019 of a 33% drop to 31%. The second point relates to the transformation of the tax credit for competitiveness and employment (CICE) down permanent charges. The government could review the terms of the CICE with the aim of reducing the cost to public finances. Finally, the government could decide to delay again the additional boost of 4 points in the Smic, already retreated from January to October 2019. Postponing the deadline to January 2020 would bring 700 million euros. (With agencies)

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