Minimum Wage Hikes Empower Workers, Reduce Inequality in France
The article discusses how in France, there has been a shift towards company-level collective bargaining since the 1980s. It looks at how the minimum wage and collective bargaining are connected, with low wages moving closer to the statutory minimum wage by the late 2010s. The study explores how the SMIC can help reduce wage inequalities, showing that sectoral bargaining and the SMIC are closely linked. However, there are challenges in ensuring that collectively agreed minimum wages keep up with SMIC increases. In 2008, a group of experts was created to recommend annual minimum wage adjustments, reducing the role of social partners in the process.