Sunday, September 7, 2014

Enterprises: CICE, a breath of fresh money and a lot of expectations – Release

Enterprises: CICE, a breath of fresh money and a lot of expectations – Release

CICE: For new hires will have to wait. Despite repeated calls from the government to invest and hire, the tax credit for competitiveness and employment was first for many companies a breath of fresh money to get the crisis.

Launched in early 2013 and integrated since the Covenant of responsibility, CICE gradually rises in power. In the first eight months of the year, the state has recorded more than 8 billion euros of applications.

In 2014, it is equivalent to 6% of payroll, excluding salaries above 2.5 times the minimum wage. While cruising, it should cost $ 20 billion.

In launching the IECC, the government said expect between 150,000 and 300,000 new jobs within three years. “We give them money to invest, hire, innovate”, companies “must seize this opportunity,” explained August Finance Minister Michel Sapin.

While trade unions and left some voices calling counterparties to the pact, the Labour Minister, François Rebsamen, business and trade unions meet on Wednesday of the 50 largest industrial sectors in an attempt to speed up negotiations on employment, training and investment.

Friday, Mr. Sapin warned that one should not expect much for the CICE of immediate job creation, “It is not how a business works: CICE is here to help businesses regain the initiative. ” For example by the “investment” but “you can not have a single model,” said he added.

The President of Sanofi France Christian Lajoux, who wants to “get out of this reasoning binary: + I give you the CICE, what you put in front “applauds. The ‘margins generated by the CICE “must be” handled differently “depending on the company, he insists

-. An” application “without control FO –

What the companies have so far used the IECC? For the PS deputy Yves Blein, rapporteur of the parliamentary commission on the CICE without full financial year, “it is too early to tell.”

He, “does not expect that it creates jobs in the first year. ” “The goal is to emphasize that the companies investment to regain competitiveness.”

In two of intent made by INSEE surveys, companies emphasize investment in employment, wages or the sale price.

At Thuasne , French group of medical products and accessories (1,600 employees), received 220,000 euros in spring allowed “more investment in machinery” and therefore “productivity”, according to its CEO Elizabeth Ducottet. The company has hired 30 people in the first half but “it’s hard to say we would not have done if there had been no CICE. This is a global trend. “

According to FO, only 20% of the money went to investment.

The CICE rather far served as a “shock of the crisis”, “assistance with cash,” said Pierre Burban, general secretary of the UPA (Artisans).

“The great mass” of the tax credit is “went directly supply the cash”, especially SMEs, also says Jean-Paul Raillard, Syndex consultant, assisting councils.

In a sample of one hundred companies, “only two reported recruitment” and “ten said it helped them maintain positions.”

The explanations provided by the management to the elected staff often renvoyaient ‘financing of investment programs already launched “or” training activities “, so” vague “, a sign that” use of CICE was not really thinking, “and” the debate has not taken place, “he said.

Pascal Pavageau, FO representative in the monitoring committee set up by the government, the ICCC will remain “an application of public money” if not “targeted and controlled.” “It is absurd that the Post button the largest amount” 357 million expected in 2014, “it would be better to target export companies” which benefit less because of the generally higher level of wages, or “sectors in difficulty “.

He said that the pressures of major groups with respect to their suppliers to cut prices up to the check CICE touched thrive. And condemns “outrageous” when “the CICE is used to pay dividends.”

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