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Minimum Wage Fixing Convention, 1970 (No. 131) - France (RATIFICATION: 1972)

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The Committee notes the information provided by the Government, which answers the points raised in its previous direct request and has no further matters to raise in this regard.

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Article 2 of the Convention. Lower minimum wage rates. Further to its previous comment, the Committee notes the Government’s indication that the Committee to Follow Branch Wage Negotiations, established in October 2006, is continuing its work of monitoring and supporting branches in which there is a certain backlog in wage negotiations. In this respect, the Committee notes that, according to the information provided by the Government, as of 31 December 2010, 89 per cent of branches in the general, metallurgy and building and public works sectors provided a first coefficient above or equal to the minimum wage (SMIC). However, it notes that, according to a study by the General Directorate of Labour (DGT), the proportion of branches with wage scales in accordance with the SMIC as of 31 May 2011 was no higher than 73 per cent, covering 8,740,000 employed persons (or 127 branches). The Committee also notes that, under the terms of Act No. 2008-1258 of 3 December 2008 to promote earnings from work, the SMIC is henceforth readjusted on 1 January each year, and no longer on 1 July, with a view to reinforcing the visibility of the social partners during the annual branch negotiations and facilitating the harmonization of branch minimum rates with the SMIC. The Committee requests the Government to provide further information on the reasons for the sudden decrease in the number of branch wage scales that are in conformity with the SMIC between December 2010 and May 2011, and on the impact of the Act of 3 December 2008 in the context of the action taken by the Government since 2005 to reduce the number of branches with backlogs in their wage negotiations.

The Committee also notes the explanations provided by the Government concerning the underlying objective of the maintenance of the system of the lower rates of the SMIC applicable to young workers, and the arrangements for its implementation. It further notes that apprentices and those with “assisted” contracts, which promote insertion or reinsertion into employment, such as the “single insertion contract” and the “professionalization contract”, are governed by specific provisions. The Committee notes in particular that, in the context of the “professionalization contract”, the employer undertakes to provide training to those covered by such contracts to enable them to acquire a vocational qualification and to provide them with employment for this purpose for the duration of the employment contract or the vocational action. It also notes that, under the terms of sections L6325-8, D6325-14 and D6325-15 of the Labour Code, young workers between the ages of 16 and 25 years, covered by a “professionalization contract”, receive remuneration that varies according to their age and level of training. The wage corresponds to 55 per cent of the SMIC for those under 21 years of age and 70 per cent of the SMIC for those aged 21 and above, and the rate is increased by 10 per cent when the person concerned has a level of training at least equivalent to the professional baccalaureate. Noting that the “professionalization contract” concerns workers included in an age range that goes well beyond 18 years and whose level of training varies considerably, the Committee requests the Government to provide further information on the necessity for the lower minimum wage rates that are applicable to these workers. It also requests the Government to indicate whether a review is envisaged of the circumstances that gave rise to this provision, in light of the principle of equal remuneration for work of equal value.

Article 4(3)(b). Participation of experts in the minimum wage-fixing machinery. The Government indicates in its report that Act No. 2008-1258 of 3 December 2008 to promote earnings from work envisages the creation of a group of experts on the minimum wage with responsibility for preparing an annual report on desirable adjustments to the SMIC, for the information of the National Commission for Collective Bargaining (CNNC) and the Government. It adds that the procedures for the designation of the members of this group of experts are determined by Decree No. 2009-552 of 19 May 2009. In this respect, the Committee observes that, under the terms of section 1 of the Decree, the group of experts shall be composed of five eminent persons selected by reason of their competence and experience in the economic and social fields and nominated by order of the Prime Minister upon the proposal of the ministers responsible for labour, employment and the economy. It further notes that the Order of 23 May 2009, issued under the Decree, designates the five members of the group of experts. The Committee wishes to recall that, in accordance with Article 4(3)(b) of the Convention, provision shall also be made for the participation in the operation of the minimum wage fixing machinery of persons having recognized competence for representing the general interests of the country and appointed after full consultation with representative organizations of employers and workers concerned. The Committee requests the Government to provide detailed information on the measures adopted, in law and practice, to ensure full consultation with representative organizations of employers and workers prior to the designation of the members of the group of experts.

Part IV of the report form. Court decisions. The Committee notes with interest the ruling of 13 July 2010 of the Social Chamber of the Court of Cassation, and the three rulings of the Criminal Chamber of the Court of Cassation, dated 15 February 2011, confirming that the flat-rate remuneration for pauses during the working day cannot be included in the earnings taken into account for the calculation of the SMIC. The Committee requests the Government to continue providing copies of any decisions by courts of law or other tribunals involving questions of principle relating to the application of the Convention.

Part V of the report form. Application in practice. The Committee notes that, according to the study of the Directorate for the Promotion of Research, Studies and Statistics (DARES), the adjustment of the SMIC on 1 January 2011 affected 10.6 per cent of employed persons (or 1.6 million employed persons). It also notes the statistics compiled by the Observatory of Penal Measures further to Labour Inspection (OSP), provided in the Government’s report, concerning the activities of the inspection services. The Committee notes in particular that between 2007 and 2010 there were 161 reports of contraventions of the regulations on minimum wages drawn up by the inspection services, or fewer than 1.5 per cent of all reports of contraventions. It further notes the statistical data concerning criminal prosecutions as a result of the contraventions reported. The Committee would be grateful if the Government would continue to provide general information on the application of the Convention in practice, including extracts from the reports of the labour inspection services, indicating the number of contraventions of the minimum wage legislation reported and the sanctions applied, as well as copies of official studies on issues relating to the minimum wage policy.

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Article 1, paragraph 1, of the Convention. Amount and coverage of the minimum wage. The Committee notes with interest that the adjustment of the minimum wage (SMIC) on 1 July 2005, under the terms of Act No. 2003-47 of 17 January 2003 respecting wages, working time and employment development, was characterized by the disappearance of the various monthly wage guarantees and by the return of a single SMIC. It further notes that, since 1 July 2006, the rate of the SMIC has been 8.27 euros an hour, or a gross monthly wage of 1,254.28 euros calculated on the basis of a 35 hour week.

The Committee further notes with satisfaction that, under the terms of Act No. 2005-102 of 11 February 2005 respecting equality of rights and opportunities, participation and citizenship for persons with disabilities, which amended section L.323-6 of the Labour Code, it has no longer been possible since 1 January 2006 to apply a reduction to the wages of workers with disabilities where their professional performance is significantly diminished. Their wages, which cannot be lower than wages resulting from the application of the provisions of laws and regulations (and therefore the SMIC) or the applicable collective labour agreement, is henceforth calculated under the conditions set out in the general law.

With regard to young workers, the Committee notes the Government’s indication in reply to its previous comment that section R.141-1 of the Labour Code, which provides for a reduction in the SMIC for workers under 18 years of age, is based on a temporary assumption of the lower productivity of these workers in relation to that of adults. In this respect, it notes that, under the terms of the second subsection of section R.141-1, the reduction is abolished for young workers with six months’ professional experience in the branch of activity and that, according to the information provided by the Government, following the six-month period, the work undertaken by young workers is presumed to be of equal value to that of an adult. The Committee further notes that, according to a study conducted by the Ministry of Labour in 2002, a total of 30 per cent of employed persons under 25 years of age were paid the SMIC, compared with 13 per cent of employed persons aged 25 years and above, and that this over-representation can be explained in part by their lack of professional experience. However, according to this study, employees under 25 years of age are also affected in greater numbers by unemployment (22.3 per cent of the 15–24 year olds in 2005), and the risk of job loss is higher for beginners, particularly where they have no or few qualifications. Finally, the Committee notes that, in view of this context, the Government considers that the retention of the reduced level of the SMIC for workers under 18 years of age has the objective of facilitating their integration into the world of work taking into account their lack of professional experience. The Committee trusts that the Government will continue to ascertain periodically whether the circumstances which have prompted the maintenance of minimum wages that are lower for workers under 18 years of age still persist and that it will inform it of any measure that it may take in this respect.

Article 2. Prohibition of the abatement of minimum wages. The Committee notes that, according to information published in August 2005 in the European Industrial Relations Review, a study by the Ministry of Employment showed that in 37 of the 74 principle sectors, the minimum wage rates are lower than the SMIC, and that around 8 million persons are affected, or half of the workers in the private sector. It notes that, in cases where the sectoral minimum wage is lower than the SMIC, the latter is paid to workers, but that the lower wage is used as basis for calculating certain bonuses, such as seniority bonuses. The Committee requests the Government to provide a copy of the study carried out by the Ministry of Employment and to provide fuller information on sectoral minimum wages that are lower than the SMIC. It also notes that in the wages subcommittee (which includes organizations representing employers and employees) on 18 March 2005, the Ministry of Labour called for a monitoring operation to follow the situation in each of the 274 industrial branches and, based on this examination, that the branches that were furthest behind in terms of bargaining and bringing wages into conformity with the SMIC should be invited to open negotiations. It notes that, according to the indications provided by the Government in its report, the number of branches where wage bargaining was behind schedule was 84 in 2005, but no greater than 23 in June 2006. Finally, the Committee notes that this operation has been made permanent through the establishment of a monitoring committee in October 2006 and the extension of its scope to cover branches with fewer than 5,000 salaried employees. The Committee requests the Government to provide additional information on the action taken with a view to reducing the number of branches in which wage negotiations are behind schedule, and on the activities of the monitoring committee established in October 2006.

Part V of the report form. The Committee requests the Government to provide a general appreciation of the manner in which the Convention is applied in practice including, for instance, extracts from the reports of the inspection services containing indications on the number and nature of the infringements reported of the minimum wage legislation, and on the measures adopted to remedy them.

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The Committee notes the report provided by the Government and the documents attached. It also notes the entry into force of Act No. 2003-47 of 17 January 2003 on wages, working time and employment development, which is intended, among other objectives, to put an end by 1 July 2005 at the latest to the six different minimum wage rates (guaranteed monthly remuneration - GMR and minimum interoccupational growth wage - SMIC) currently in force and attributable to the measures adopted for the reduction of working time.

Article 2, paragraph 1, of the Convention. The Committee notes that according to the legislation in force reductions in the rate of the SMIC are envisaged for young employees and workers with disabilities. Young workers who have not acquired six months of occupational experience in the corresponding sector receive the SMIC, but at a rate that is reduced by 20 per cent for workers aged under 17 years and by 10 per cent for those aged between 17 and 18 years. In this respect, the Committee wishes to refer to paragraph 176 of its General Survey of 1992 on minimum wages in which it indicates that the reasons that prompted the adoption of lower minimum wage rates for groups of workers on account of their age and disabilities should be regularly re-examined in light of the principle of equal remuneration for work of equal value. The Committee would therefore be grateful if the Government would provide additional information on this subject, including extracts from recent studies assessing the introduction of the "SMIC Youth" and whether it is appropriate to pursue a policy of fixing lower minimum wage rates as a function of the age of workers.

Article 5 and Part V of the report form. The Committee requests the Government to keep it informed of any developments relating to the application of the Convention in law and practice.

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The Committee notes the information contained in the Government's report and requests the Government to provide, in accordance with Article 2, paragraph 1, of the Convention read in conjunction with Article 5 and point V of the report form, general information in respect of the practical application of the Convention, including its application in the agricultural sector and the Overseas Departments, for example: (i) adjustments to the minimum wage rates in force; (ii) the relevant statistical information in respect of the number and different categories of workers covered by the minimum wage regulations; as well as (iii) the reports of the inspection services (for example, the violations observed, sanctions imposed, etc.).