Law Covenant: transparency of wages, the missed opportunity

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    In this tote that is the draft of the law Covenant, in consideration of the national Assembly since the 25 September, this topic is relevant to potentially all the assets : the transparency of wages. An amendment to extend it just has to be voted on this Friday.

    The French are 70% in favour of the publication of the gender pay gap by level in large companies, according to a poll by Harris Interactive for Oxfam, the NGO for the fight against poverty led by Cécile Duflot, revealed on Tuesday. They are going to be disappointed. The deputies adopted in plenary a text is much less ambitious : the listed companies will not be required to publish that the gap between the pay of their executives and the average wage, and the gap with the median wage.

    “Incomprehensible”, the notion of a quartile?

    To the minister of Economy, Bruno Le Maire, these two indicators, average and median, are enough to “know better the distribution of wages in the company, and the gap between the leaders and the other employees”. Manon Aubry, a spokesman for Oxfam, is not of this opinion : “Only a transparency on the variances of wages at least by quartiles in each country allows to have data that are truly useful and operational for measuring the pay gap and would have an economic incentive to reduce them.”

    The quartiles are used to obtain a photography fine landscape salary in the company. The first quartile is the wage above which there are 75% of the employees, the second is that above which lie 50% of the employees, the third quartile in the one above which lie 25% of the employees. It is a way of cutting out the range of remuneration in force in four tranches, each representing 25% of the population.

    With other members LREM, Matthew Orphan had introduced an amendment incorporating this concept, adopted in the United Kingdom there is a year and a half. The measure died in committee, it was decided not to represent them to the review session. “I had the opportunity to see that this term quartile is, in fact, quite incomprehensible to the journalists and to the French. The concepts of average and median are a good compromise, a good landing point. The device will apply to all listed companies, representing 700 companies.”

    LREM forgetting the quartiles, The New Left and France Insubordinate have poured into the breach. The two parliamentary groups have taken up the amendment defended initially by Matthew, an Orphan, by lowering the threshold at which the rule would apply to : 1000 employees (instead of 5000 provided by the member LREM) full-time equivalent (FTE) in the world or 500 (instead of 1000) by FTE in France for The France Insubordinate, 250 FTE’s for The New Left.

    Soon indicators on the differences between men and women

    Overall, the draft law Covenant has been extensively amended and the subject of the transparency of salaries was no exception.

    a Number of amendments designed to prohibit disparity too glaring between the remuneration of employees and officers of the company have been filed… and denied. The New Left, in particular, has proposed the establishment, under pain of financial penalties (tax increase), a standard deviation of 1 to 12, “according to the logic that within a same company, no one should earn in a month more than another in one year”. An officer whose remuneration would be increased beyond this gap should necessarily increase the wages to the lowest in compensation. France Insubordinate advocated a ratio of 1 to 20.

    deputies LREM have also suggested that the transparency of wages also applies on the wage gap between men and women and publish the level of the average wage and the median of all workers are women, in the eyes of the average compensation, and median of the male employees. But this was in collision with the equality of women and men of the law professional Future adopted on the 1st of August. A decree is in preparation, which should, by the end of October or early November, the establishment of indicators to measure the differences.

    Read our complete file

    Y a-t-it a problem of wages in France? Premium Macron: the government must clarify its copy Premium défiscalisée: barely proposed, already complicated

    France Insubordinate wanted to finally extend to all companies the obligation to adopt a plan or agreement of the company, against the inequality of wages and careers between men and women, a measure that only applies today to the companies of over 50 employees.

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