The Ministry of Economy and Finance on Monday welcomed the agreement reached between French employers and unions to simplify and broaden the sharing of company profits with employees, especially in the smallest ones.
We are delighted with the agreement which is an important advance, we said Bercy. After months of complicated negotiations, the Medef, the CPME and U2P on the employers’ side and the CGT, CFDT, FO, CFE-CGC and CFTC unions presented a text on Friday to make existing systems more accessible and to continue simplifying interest, participation and employee share ownership and strengthen their attractiveness.
In particular, it aims to widely generalize systems such as profit-sharing, participation and value-sharing bonuses for all companies with more than 11 employees.
The new text thus provides that companies between 11 and 49 employees and which are profitable and whose net profit represents at least 1% of turnover for three consecutive years set up at least a system for sharing the value from the 1st January 2025. Companies with less than 11 employees have the possibility of sharing the profits with their employees.
The agreement is open for signature by trade unions until February 22. It will then have to be translated into legislation.
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To compensate for the erosion of purchasing power by inflation, the government had put forward the track of a wage dividend, a concept that the signatories of the agreement on Friday pledged not to support. What matters is that there is a better sharing of value and that there are new obligations of sharing value for employees, Bercy insisted.
A convention on value sharing is scheduled for February 20 within the Renaissance presidential party.
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