2023-10-19 07:00:04
Aith the conference on low wages and the start of the Senate’s examination of the bill on value sharing, the social agenda for this month of October is full. We cannot say that the bodies and social partners are not mobilizing to respond to an emerging social crisis.
However, the time has undoubtedly come to recognize that the French social model is in a state of brain death. The inevitable drop in labor income compared to capital income and the return of inflation were fatal to it.
While Social Security spending on health and retirement is increasing under the combined effect of the aging of the population and the increase in life expectancy, their financing is being dried up precisely by the measures of the moment. Namely the massive reduction in social contributions on salaries below 1.6 times the minimum wage and the multiplication of value sharing schemes which have the effect of “variabilizing” labor remuneration and subjecting it to a more social regime. favorable for businesses.
In the short term, these provisions will probably achieve the desired objective, which is to support purchasing power. But, in the medium term, businesses will adjust. Whether we call them profit-sharing, participation, value sharing bonus, company valuation sharing plan, these schemes remain personnel costs for companies and will be recorded as such. However, it is in the nature of business leaders to control their costs and not grant more than they think is necessary.
500,000 euros at the end of forty-five years of career
The challenge is rather to put in place the right tools so that work becomes remunerative again and gives employees the ability to improve their standard of living, without harming the financing of Social Security. It starts by extracting ourselves from insoluble problems to address the right target: capital.
When a company pays dividends or the value of its stock rises, its costs are not impacted, its competitiveness is not affected, on the contrary. The company is all the more satisfied when it benefits its employees rather than foreign pension funds. Hence the attractiveness and power of this French success: employee shareholding. But for it to change people’s lives it must be universal and massive, which is an unattainable objective as it stands. Indeed, how can we imagine that employees who cannot make it through the month can buy shares?
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