Faced with social unrest, government seeks limited solutions

The government can act on the minimum wage (Smic), but its scope of action is limited regarding other salaries, leaving the responsibility for negotiations to the social partners meeting this Monday morning. Lecornu will also meet this afternoon with representatives of high school students and students, before a first meeting of the Parcoursup reform committee, which is at the heart of their concerns.

In a letter addressed to unions and employers on Friday, Lecornu affirmed his desire to take into account expectations regarding purchasing power, as well as employers’ concerns about employment, promising “concrete responses” that he will present after the social conference.

Economist Xavier Timbeau highlighted the government’s delicate situation, comparing the situation to a La Fontaine fable, after years of dismantling social dialog and weakening public finances. He added that the government can increase the Smic without assuming the direct consequences, but must be careful not to compromise the state budget.

Public sector unions were not invited to Monday’s meeting and will be received separately by Lecornu next Friday. Laurent Escure, of the Unsa union, warned that the segmentation of responses to the social movement risked prolonging its duration.

Michel Picon, of the Union of Local Businesses (U2P), cautioned against an increase in the Smic without a reduction in the tax burden on businesses.

The discontent persists, with weekly mobilization days since the start of the high school movement in mid-September, marked by violence and looting on October 17. An inter-union has already called for a new day of demonstrations on Tuesday.

Due to the precarious financial situation and the absence of a parliamentary majority, the government has little room for maneuver six months before the presidential election. Several measures are being considered, including an anticipation of the automatic increase of the Smic, a boost to this salary, and assistance with energy checks.

The government hopes that these measures will encourage social partners to negotiate wage increases in professional sectors and within companies. However, the scale of the measure on the Smic is likely to fail to satisfy the unions, which are calling for larger increases, such as 100 euros net for the CFDT and 150 euros for the CGT. Jean-Pierre Farandou, former Minister of Labor, said he would not propose an increase likely to harm employment.

Manuel Bompard, of La France insoumise, described this approach as a “joke,” pointing out that the automatic Smic increase scheduled for January would render the boost insignificant.

Gabriel Attal, Renaissance candidate, emphasized that the main problem is not so much the level of the Smic as the number of French people who are stuck at that level. Unions are also demanding that companies no longer benefit from public aid if their minimums are below the Smic.

Employer organizations, however, insisted on their inability to support a wage increase combined with a reduction in employer contributions relief, as planned in the 2026 Social Security Finance Act. An implementing decree could be taken soon, but unions consider it insufficient.