Energy Sector Wage Negotiations: Employers’ Revised Salary Increase Proposal Sparks Mixed Reaction from Unions

2023-10-12 18:56:20

Employers revised their salary increase proposal upwards, from 1.7% to 2%, but CFE-Energie demanded at least 3%. For its part, the CGT welcomed the commitment of business leaders in favor of a review clause.

Wage negotiations in the energy sector ended Thursday, with a final proposal from employers, which received a mixed reception from the CGT, the leading union organization, and even more reserved from other unions. “The negotiations ended with a final proposal from employers of a 2% increase” in the basic national salary on January 1, 2024, indicated Stéphane Chérigié, national secretary at CFE-Energie.

A proposal revised upwards compared to the previous meeting of September 21, during which employers proposed an increase of 1.7%, but far from the demands of CFE-Energie, the second representative organization, which demanded at least 3 %. “We proposed 1.5% on January 1st and 1.5% on September 1st, which also makes 2% ‘mass’ (over the year), but allows us to end the year 2024 at +3%, management refused,” said Stéphane Chérigié, for whom it will be “complicated” to obtain the signature of his union members.

“We are going to probe our authorities to see if we affix our signatures,” indicated Sandrine Tellier, federal secretary FO, who however appeared pessimistic, emphasizing that the proposal does not cover the inflation forecast for 2024 and that there already had some catching up to do for 2023.

The CGT called its members to strike on Thursday

The CGT, for its part, was more mixed: “not satisfied” with the rate of increase proposed in relation to inflation, it welcomed a “commitment” from business leaders to apply a review clause during next mandatory annual negotiations, to observe the final inflation over the year and, if necessary, “review the rate for the year 2024”, according to Fabrice Coudour, of the CGT-Energie. The union believes that this effectively amounts to indexing the basic national salary to inflation, as it has demanded. When asked, the employers did not respond at the start of the evening.

The agreement was signed by the end of November, once morest the backdrop of union elections in the sector. If the signatory unions do not account for 30% of representativeness, it will not be validated and employers can then decide whether to apply it or not. The CGT had called on its members to strike on Thursday, to put pressure on the negotiations. This movement mainly resulted in gatherings in front of certain power stations, some reductions in nuclear production and reduced availability of hydraulic power, according to Fabrice Coudour. He mentioned production drops reaching around 3,000 MW at the height of the movement, the equivalent of around three nuclear reactors. Several gas storage facilities were also blocked, according to the CGT.

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