3 million for corporations whose numbers exceed this threshold

Launched by the French Government to name the defence of purchasing power, the mandatory premium project for employees of companies that increase their dividend arrives Tuesday before members of Parliament, without having defeated the opposition of the employers organisations and unions skeptical.

Two months ago, Budget Minister François Baroin, had suggested the possibility of a premium 1,000 euros and its services had raised eight million of potentially affected employees.

But the Government has been more cautious over the weeks on the scope and magnitude of the device.

Nevertheless, President Nicolas Sarkozy defended the project for social justice.

"When the recovery comes, those who were asked efforts must be the first beneficiaries of this recovery", he said last month during a travel in the region.

Included in the Bill of amendment funding of social security, which the National Assembly begins consideration Tuesday evening, the text provides a bonus to all employees of the undertakings with more than 50 employees which the dividend per share increase in the average of the two previous years.

This premium, exempt of any contribution or contribution social other than the CSG and CRDS in a limit of 1,200 euros per employee, will remain "optional" for businesses less 50 employees and the text does not fix its amount, leaving this to the negotiation between the social partners.

"This project ignores the economic reality of the companies and the contribution of social dialogue", were late Monday in a joint communiqué French Medef, CGPME and UPA, the three major employers.

A RISK OF "DISSATISFACTION"

Laurence Parisot, President of the Medef, claim that "the threshold of 50 employees be raised to 500" and that the premium be "optional" in all cases. This request is relayed by several amendments to the text by elected representatives of the majority.

For their part, Socialist Members will defend the creation of an "annual wage Conference" bringing together the State and the social partners to ensure a better distribution of the share of value added.

For Jean-François Roubaud, President of the CGPME, "leave the State to interfere in the management companies, is opening the door to a form of dirigisme detrimental to the normal functioning of the market economy".

With the trade unions, the CGT believes that the premium "does nothing to the urgent need to increase real wages" and feared that the gap between initially evoked EUR 1,000 and the amount ultimately paid raises "dissatisfaction".

These days, several movements to strike disrupted activity of large private companies such as Carrefour for wage claims.

The Bill retains an order of magnitude of six million employees for companies that pay dividends including those employing less than 50 people, and $ 4.3 million for corporations whose numbers exceed this threshold. This table also on an average amount of the premiums for 700 euros by employees.

On the basis of these assumptions, the project could lead employers to distribute a total amount of EUR 2.8 billion, a little less than a day of consumption expenditures of households according to the Insee statistics.

Device on the other hand have a very limited cost of the order of EUR 20 million for public finances.

The text of the Bill: