The French trade unions are considering a draft accord that sets out the terms and conditions for a EUR30bn (USD41.6bn) reduction in labor costs. The main employers’ associations Medef, the CGPME, and the UPA have drafted the agreement, which urges businesses to commit to employment goals, in return for tax cuts. The employer associations have called on the Government to clarify its part of the bargain and firm up its plans to lower social levies for companies.
With substantial tax breaks in the balance, some insist that the text simply does not go far enough to make the tax cuts conditional on concrete commitments from industry.
Within the framework of its responsibility pact, the Government has pledged to lower the tax burden on labor for employers to the tune of around EUR30bn, through the CICE tax credit for competitiveness and employment and through the abolition of employers’ family welfare contributions. This latter measure has not yet been confirmed.
