Monday, February 15, 2016

Covenant of Liability: face the bosses, shy threats Valls – The Express

More than two years after the announcement of the Covenant of responsibility and its 41 billion expense reductions, the head of government has just recognized that employers commitments were not “satisfactory”. Yet it was the essence of this project. On the one hand, the government substantially lowered expenses and taxes paid by businesses. On the other, companies had to engage in negotiations at branch level to formalize employment arrangements in favor. Negotiations have been followed more or less regular until Monday’s meeting.

The result? Only 16 of the 50 branches have actually signed agreements. Knowing this total, only three provide for net new jobs. Manuel Valls decided to brandish a threat: if the negotiations are not progressing, the government will not hesitate to “condition” the charges decreases.

STORIES & gt; & gt; Manuel Valls threat tough on companies

From what conditions are we talking about?

should employers take these threats seriously? Declines may not relate to the tranche in 2017, says an adviser Matignon contacted by L’Express. Of the 41 billion expected, there are only 8 billion to implement. At Matignon, it was confirmed that only allowances of C3S (about 4.5 billion euros in 2017) and corporation tax (about 2.5 billion euros in 2017) may be conditioned to success branch negotiations.

The negotiations are not framed

The question is what are the real expectations of the government’s commitment of employers. “The state and the legislature have secured their share of responsibility, trust do we Matignon. It is now the turn of companies. Some branches are playing the game, but it’s true that this is not the case everywhere. the pace is slow and we know it. This is also due to the operation of negotiations between the social partners “.

In fact, negotiations drag and evaluation remains particularly difficult. Because some branches such negotiated new posts, but not necessarily net creations. “We do not necessarily expect job creation commitments. Learning can still discuss, vocational training, or CDI CDD processing,” says one at Matignon. This should not facilitate the work of Manuel Valls when it comes to determining whether or not companies have well played the game. “We can not ask the same of companies in high growth sectors and d others in trouble. Our bias is to trust the social dialogue. We are not to judge the quality of the agreement, to give the good and bad points, “defends the ministerial adviser .

The challenge: not to penalize all companies

When Manuel Valls wants to condition the load drops, it speaks only of diversion. No way indeed to touch the total budget, as sought this was still the elected socialist. “We always said that we would respect the financial commitment” of 41 billion euros in total lower cost of labor in France, he said at a press conference. But as already was sometimes proposed, aid may be packed, they can be redirected to other businesses, that is what we will discuss, “he added. A decision that seems very difficult. How do enjoy that the most proactive companies to sanction poor performers?

This is exactly the problem is now the executive face with the tax credit for competitiveness and employment. François Hollande promised January 18 to transform the CICE expense reductions for permanent footing. This may penalize companies employing many workers earning the minimum wage, since companies already pay more expenses (excluding Urssaf) on. This method goes wrong, while many economists still advocate the need for better targeting of aid to firms on small salaries, to avoid deadweight and promote hiring.


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