Carole Ferry 6:31 a.m., June 2, 2022, modified at 6:34 a.m., June 2, 2022

While prices have been rising steadily for several months - inflation has now reached 5 to 5.2% - the question of raising wages to meet the rising cost of living is dividing companies.

While some opt for higher salaries for their employees, others fear falling into the trap of an inflationary spiral.

TO ANALYSE

Since 1983, wages no longer follow the rise in prices, only the minimum wage is indexed to inflation.

It is currently at 1,302 euros net per month, which is 33 euros more than last January.

Since the financial crisis of 2008, they have tended to abandon general increases in favor of individual increases.

During covid, salaries were even frozen.

Now the wind is starting to turn.

At the time of the resumption, the employees demanded a gesture and expressed signs of anger.

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Employees no longer accept the wage freeze

It is generally during the NAO, the mandatory annual negotiations, that salary increases are decided for the year.

Nevertheless, with the growing inflation in progress, waiting for the next negotiations seems impossible for some employees.

Thus, several strike movements have taken place in recent weeks.

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Marionnaud employees closed the stores to denounce miserable wages.

Colgate-Palmolive employees have also asked for the 20-year wage freeze to be stopped in Compiègne.

In recent days, the company Faurecia has granted 3.5% salary increase to its employees in the Doubs after a social movement.

But watch out for the inflationary spiral

The Minister of the Economy Bruno Lemaire has launched a call to increase remuneration for companies that can.

Nevertheless, it is difficult to generalize such a measure because it would run the risk of provoking an inflationary spiral.

By increasing their employees, companies must increase the prices of their products or services to compensate for wage increases, which inevitably leads to higher prices for consumers.

"It would be necessary, company by company, that they do the maximum, that is to say that they increase wages, but without this putting them in a situation where they will in turn be forced to increase prices. We will have to do it on a case-by-case basis and it is not easy to define from a macroeconomic point of view", explains Eric Heyer, economist, at the microphone of Europe 1.

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In order to offset inflation, some companies decide to grant other aid to support their employees, such as the provision of electric bicycles to avoid fuel costs.

Medef boss Geoffroy Roux de Bezieux also recognizes that companies will have to make an effort.