More and more companies are considering using the Collective Performance Agreements (CPAs). They would thus offer their employees to lower wages to avoid or limit social plans.
In the current economic situation, many companies have seen their business collapse. Faced with the threat of mass layoffs, the government encourages them to be more flexible. “There are alternatives. I call on companies in difficulty to negotiate collective performance agreements,” said Labor Minister Muriel Pénicaud on LCI on Sunday. These APCs, which are part of the 2017 Labor ordinances, allow companies to play for a maximum of five years on the remuneration, mobility and working time of employees, without however calling into question the five weeks of paid vacation or the minima wages provided for in collective agreements.
There are alternatives to layoffs. I call on companies in difficulty to negotiate collective performance agreements, created by work orders. More than 350 have been signed since their creation. https://t.co/q8zKvLCaZY
– Muriel Pénicaud (@murielpenicaud) May 31, 2020
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To be valid, a CPA must be approved by the majority union organizations. Employees are then forced to accept the principle, under penalty of dismissal. Since 2017, 350 agreements have been signed, concerning 67% of working time. But their number could explode in the current context with an emphasis this time on compensation.
The examples of Derichebourg and Ryanair
Concretely therefore, the employee would accept a drop in his salary to keep his job. More and more companies weakened by the current context are considering this consideration. Like Derichebourg Aeronautics Services, a subcontractor for Airbus and Dassault. The company, which plans a social plan with 700 redundancies, has undertaken to reduce its scope if the employees agree to waive their transportation and / or meal allowance. FO, the majority union, accepted the principle.
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Derichebourg: first negotiations
Ryanair has offered its staff the choice between a salary cut for five years (-20% for pilots, -10% for hostesses and stewards from July 1) or a social plan that would affect a quarter of the workforce. A blackmail denounced by Muriel Pénicaud: “Collective performance agreements [ont été mis en place] in a spirit that is not at all that used by Ryanair, “tackled the minister this Tuesday morning on BFM Business.
Jobs will be our priority and our compass in the recovery plan. We will support companies with innovative measures to preserve jobs and skills. https://t.co/DfXnlz7ADt
– Muriel Pénicaud (@murielpenicaud) June 2, 2020
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The risk of a fall in purchasing power
For economists, if APCs represent an option that would save French jobs, other avenues are to be considered. Companies could thus suspend the employment contract of an employee whose activity has declined, without dismissal. This would allow him to train in another job where there is more demand. Proposals have also been made to the government to promote internal mobility and “lending of labor” for a given period, in order to allow unemployed workers to lend a helping hand to another company from time to time.
Unionists deplore the fact that efforts are once again required of employees instead of shareholders. They also fear seeing some already low wages passed below the minimum wage. A fall in remuneration which would automatically lead to a fall in the purchasing power of some. Difficult in a period when the French are encouraged to spend to boost consumption.
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