Économie et Statistique n° 426 The "Living Environment and Security" Survey in the victimization data series - Wage bargainind in France - Internationalization and location of Services
Wage Bargaining in France: an Analysis on Panel Data (1994-2005)
Wage agreements covered an average of nearly 75% of paid employees in France in the period 1994-2005. Industry agreements covered nearly two-thirds of workers, while enterprise (i.e., single-company) agreements covered less than one-quarter. The percentage of employees paid at near-minimum-wage level (Salaire Minimum Interprofessionnel de Croissance: SMIC) makes an enterprise agreement less likely but industry agreements more likely. There is no systematic connection between the signing of an industry agreement and of an enterprise agreement. The intervals between two agreements—very often one year—reflect the obligation for firms and industries to bargain annually. Very few agreements have effects lasting several years. Some agreements are phased in gradually during the signature year. In the period 1994-2005, 53% of agreements in industries other than metalworking and construction were signed between October and January, 40% of agreements in metalworking were signed in December, and 50% of agreements in construction were signed between March and May. At enterprise level, nearly 60% of agreements were signed between January and April. The timing of the minimum-wage adjustment—July in each year of the period studied—has an impact on the agreement calendar. In sectors with a high proportion of workers paid at near-minimum-wage level, agreements tend to be signed between June and September. The distribution of negotiated wage changes across industries and enterprises depends on inflation conditions, the sales/workforce ratio at firm level, and the proportion of employees earning the minimum wage. The prior signing of an industry agreement has a mildly positive effect on the pay raise negotiated in the firm.